Key Transactional Structures
Earnest Money Deposit (EMD) Lending
- Purpose: Cover your deposit to secure a contract when you don’t want to tie up capital.
- Mechanics: We advance 100% of your EMD. At closing, you repay principal plus a short-term funding fee.
Ideal For: Wholesalers and investors needing to lock in deals without liquidating other assets.
Double Close (Assignment) Fund
- Purpose: Execute a double-closing where you “purchase” and immediately sell the property—bypassing assignment restrictions.
- Mechanics:
- We fund the purchase from Seller A to you.
- Simultaneously, you (as buyer) sell to Buyer B and repay our advance plus fees.
Ideal For: Markets with assignment-ban regulations or investors who prefer clean title transfers.
Stack Method (Morby Method / Seller Carry-Back)
- Purpose: Achieve 100% financing on acquisition when the seller agrees to carry part of the purchase price.
- Mechanics:
- Negotiate: Seller agrees to finance a portion (e.g., 30%) of the down payment.
- Bridge Fund: We advance the remaining down payment into escrow to satisfy lender requirements.
- Close & Restructure: At closing, funds are returned to us plus interest. The seller-financed portion is formalized between seller and buyer.
Result: You acquire the property with full leverage—no outside equity partners and no out-of-pocket capital.
Ideal For: Commercial deals or large residential transactions where seller financing is available, but lender guidelines require cash down.
