Stack Funding in Sacramento, CA | Swift Deal Funding
Stack (Morby Method) Funding in Sacramento, CA
Stack funding provides the cash needed at the closing table when a seller carry-back note covers the buyer’s down payment but escrow still requires real funds to close. Once recorded, that second-position note repays our funds plus a flat 2.5% fee, frequently within the same business day. Sacramento Stack deals commonly run $40,000–$150,000 funded, with capacity to $10,000,000 per transaction.
Stack fits Sacramento’s creative-finance deals. With a median around $500,000 and a deep stock of long-held rentals, aging landlords in older neighborhoods — Oak Park, Del Paso Heights — will often carry paper rather than take a full cash payout, preferring steady income and deferred capital gains. Subject-to and owner-finance structures appear regularly, especially as Bay Area capital chases Central Valley value, and Stack covers the working capital escrow needs to record — with California’s dry-funding model setting the timing.
How a Stack deal closes in Sacramento (dry-funding, record-first)
California is a dry-funding, escrow state, so escrow records before disbursing — nothing releases at signing. The sequence:
- The deal carries a seller carry-back sized to cover the down payment plus closing costs.
- We wire the cash needed to close into escrow.
- The deal signs; the Sacramento County Recorder records the deed, then the carry-back note in second position.
- When recording confirms, escrow disburses and the recorded note repays our funds plus 2.5%.
The recorded second-position note is the repayment instrument, so recording is required — and since California disburses only after recording, your escrow’s recording cutoff sets whether it clears same day. In NorCal this escrow is often a title company’s in-house department.
Pricing
Flat 2.5% of the funded amount, collected on the settlement statement. No upfront fees.
| Funded Amount | Fee |
|---|---|
| $50,000 | $1,250 |
| $100,000 | $2,500 |
| $150,000 | $3,750 |
| Up to $10,000,000 | $250,000 |
What you’ll need
- Executed purchase contract with seller-financing terms
- Seller carry-back ≥ required down payment + closing costs
- A Sacramento escrow prepared to record the second-position note immediately after closing
- Written confirmation from escrow that the note will be recorded as agreed
No credit check, income verification, or tax returns; California has no wholesaler-licensing statute.
A typical Sacramento Stack scenario
You structure an owner-finance deal on a Del Paso Heights rental where the seller — a longtime landlord who wants monthly income, not a lump sum — carries a $70,000 note covering the down payment and costs, but escrow still needs $58,000 of real funds to close. We wire the $58,000 into your Sacramento escrow. The deal signs; the Sacramento County Recorder records the deed and your second-position carry-back note. Once recording clears, escrow disburses and the recorded note repays our $58,000 plus the $1,450 fee — same business day when the file is in early.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate with your Sacramento escrow on the carry-back recording.
Frequently Asked Questions
How does Stack funding handle California's record-first rule in Sacramento? +
Stack supplies the cash needed at closing when a seller carry-back covers the buyer's down payment but escrow still needs real funds to close. California is a dry-funding, escrow state, so the Sacramento escrow — often a title company's in-house escrow in NorCal — records before disbursing. We wire the closing cash; the Sacramento County Recorder records the deed and the second-position carry-back note, then escrow disburses. The recorded second note repays our funds plus the flat 2.5% — typically the same business day once recording confirms. Confirm the recording sequence with your escrow.
Does the carry-back note have to record for Stack in Sacramento? +
Yes. The structure depends on the second-position carry-back note recording with the Sacramento County Recorder. In California's record-first model, escrow records the deed first, then the carry-back note in second position, then disburses. That recorded note is our repayment instrument, so your Sacramento escrow must confirm in writing they'll record it as agreed before we fund — that written confirmation is a core requirement of every Stack deal. In NorCal this is frequently a title company's escrow department.
When is Stack the right call instead of Echo in Sacramento? +
Use Stack when seller financing is built into the deal — a seller carrying a note rather than taking full cash. This appears on long-held Sacramento rentals where an aging landlord prefers monthly income over a lump sum, common in older neighborhoods like Oak Park and Del Paso Heights. The carry-back must cover the down payment plus closing costs. Use Echo when repayment comes from a sizable assignment fee with no seller note. Both front cash at the Sacramento close; Stack is repaid by the recorded second note, Echo from seller proceeds.
Apply for Stack Funding in Sacramento, CA
Submit your application online — same-day decisions for complete files before 2 PM Eastern.