Credit Stacking for Gap Funding

[Jeff Whalen]

Looking into credit staking to help with gap funding on fix and flips. I’ve been talking with the folks at staking.capital and they sound like they had a pretty cohesive plan. Anybody work with them or use this method to cover their funding gaps?

[Doug Smith]

Three things: 1) Taking on revolving credit will dramatically lower your credit score. 2) Taking on that debt will choke your cash flow and it starts most people circling the drain. 3) Most legit lenders, including us, are going to require you to "source" the down payment by getting the last 2 - 3 months of your bank statements. Any large deposits we're going to want to see and if you're borrowing those funds, we're not going to do the loan. Stacking is a very bad idea.