Stack Funding in San Diego, CA | Swift Deal Funding
Stack (Morby Method) Funding in San Diego, 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. That recorded second-position note then repays our funds plus a flat 2.5% fee, often within the same business day. San Diego Stack deals commonly run $90,000–$350,000 funded, with capacity to $10,000,000 per transaction.
Stack fits San Diego’s creative-finance deals. With a median around $950,000 and deep equity in long-held property, sellers here will often carry paper rather than take a full cash payout — heirs settling Prop 19 inherited homes who want income instead of a lump sum, and retiring military landlords unwinding rentals in Logan Heights and Encanto. Subject-to and owner-finance structures show up regularly, and Stack supplies the working capital escrow needs to record — with California’s dry-funding model setting the timing.
How a Stack deal closes in San Diego (dry-funding, record-first)
California is a dry-funding, escrow state, so escrow records before disbursing — nothing releases at signing. The sequence:
- The deal is built with a seller carry-back that covers the down payment plus closing costs.
- We wire the cash needed to close into escrow.
- The deal signs; the San Diego County Recorder records the deed, then the carry-back note in second position.
- After recording confirms, escrow disburses and the recorded note repays our funds plus 2.5%.
That recorded second-position note is our repayment instrument, so recording isn’t optional — and because California pays out only after recording, your escrow company’s recording cutoff decides whether it clears the same day.
Pricing
Flat 2.5% of the funded amount, collected on the settlement statement. No upfront fees.
| Funded Amount | Fee |
|---|---|
| $100,000 | $2,500 |
| $200,000 | $5,000 |
| $350,000 | $8,750 |
| 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 San Diego escrow company 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 San Diego Stack scenario
You structure an owner-finance deal on a Logan Heights duplex where the seller — a retiring landlord who wants monthly income, not a lump sum — carries a $160,000 note covering the down payment and costs, but escrow still needs $130,000 of real funds to close. We wire the $130,000 into your San Diego escrow company. The deal signs; the San Diego County Recorder records the deed and your second-position carry-back note. Once recording clears, escrow disburses and the recorded note repays our $130,000 plus the $3,250 fee — same business day when the file is in early.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate with your San Diego escrow company on the carry-back recording.
Frequently Asked Questions
How does Stack funding handle California's record-first rule in San Diego? +
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 San Diego escrow company records before disbursing. We wire the closing cash; the San Diego 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 company.
Does the carry-back note have to record for Stack in San Diego? +
Yes. The structure depends on the second-position carry-back note recording with the San Diego 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 San Diego escrow company must confirm in writing they'll record it as agreed before we fund — that written confirmation is a core requirement of every Stack deal. SoCal typically runs this through an independent escrow company.
When is Stack the right call instead of Echo in San Diego? +
Use Stack when seller financing is built into the deal — a seller carrying a note rather than taking full cash. This shows up often on Prop 19 inherited San Diego property where heirs prefer steady payments over a lump sum, and on retiring military landlords unwinding rentals. 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 San Diego close; Stack is repaid by the recorded second note, Echo from seller proceeds.
Apply for Stack Funding in San Diego, CA
Submit your application online — same-day decisions for complete files before 2 PM Eastern.