All Forum Posts by: Edward Johnson

Hi Dan, 

In our system whether or not a DSCR lender allows 2nd doesn't matter. We close the 2nd leg of the transaction with a real estate attorney. Has nothing to do with the lender

If you're an investor or wholesaler running into dead ends due to down payment gaps or tight lending terms, you need to know about the Stack Method—a powerful and creative funding strategy that helps close more deals with less capital.

🔑 How it works:

• The buyer uses a DSCR loan as the primary financing tool (65–75% LTV).
• The seller carries back the down payment as a 2nd-position lien, preserving their equity and deferring taxes.
• A transactional lender covers the temporary funding gap to ensure a seamless double close or to facilitate acquisition.

✅ Benefits:

• No need to bring in cash for the down payment
• Seller gets long-term returns and capital gains tax advantages
• Buyer acquires a cash-flowing asset with minimal out-of-pocket investment
• Works for SFR, multifamily, land, and even self-storage

This method is especially effective when there's strong equity and a motivated seller willing to be flexible. I’m happy discuss any deals people may have!

Thanks!