Stack Funding in Austin, TX | Swift Deal Funding
Stack (Morby Method) funding in Austin, TX
Stack funding provides the cash a title company needs in escrow at closing when a seller carry-back note covers the buyer’s down payment but no real money is yet at the table. In Austin, where the post-2022 price correction has pushed more equity-rich sellers toward carrying financing, that gap shows up often on creative-finance deals.
With a median sale price near $550,000 — the highest of the major Texas metros — and seller-finance structures concentrated in East Austin, North Austin, and the hill country toward Dripping Springs, Austin produces a steady flow of carry-back deals. Typical Stack amounts here run $30,000 to $100,000, with capacity up to $10 million per transaction. The recorded seller-carry note repays our funds plus a flat 2.5%, often same-day via title. We never pull credit, verify income, or ask for tax returns.
How a Stack deal closes in Austin
Since Texas closings go through title companies and the wet-funding rule keeps cash in escrow before disbursement, Stack fits the gap exactly:
- The deal is set up with the seller carrying a note that covers the down payment and closing costs.
- We wire the cash the closing table needs on closing day.
- Title pays out the seller’s proceeds and records the carry-back note in second position.
- The recorded second-position note then repays us our funds plus the flat 2.5%, typically same-day through title.
Confirm with your Austin title company that they will record the second lien and handle the disbursement order as agreed before you set the closing date.
Pricing
Flat 2.5% of the funded amount. No upfront fees, collected through the closing statement:
| Funded Amount | Fee | Example |
|---|---|---|
| $50,000 | 2.5% flat | $1,250 |
| $100,000 | 2.5% flat | $2,500 |
| $500,000 | 2.5% flat | $12,500 |
| Up to $10,000,000 | 2.5% flat | $250,000 |
What you’ll need
- Executed purchase contract with seller-financing terms
- Seller carry-back amount large enough to cover the required down payment plus closing costs
- Title company prepared to record the seller-carry second-position note immediately after closing
- Written confirmation from title that the note will be recorded as agreed
A local note: with seller financing more common in Austin’s corrected market, make sure the carry-back amount fully covers the down payment plus closing costs before you commit.
A typical Austin Stack scenario
An investor buys an East Austin duplex on owner financing from an equity-rich seller who bought years before the price run-up. The seller agrees to carry a $70,000 note covering the down payment and closing costs, but Texas wet-funding rules still require that cash in escrow to close. We wire $70,000 on closing day; title disburses, records the carry-back note in second position, and that note repays us $70,000 plus the 2.5% fee ($1,750) — $71,750 — same-day. The investor closes without bringing personal cash to the table.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate directly with your title company on the carry-back recording.
Frequently Asked Questions
How does Stack funding work on an Austin seller-finance deal? +
Stack provides the cash an Austin title company needs in escrow at closing when a seller carry-back note covers the buyer's down payment but no real money is at the table. We wire that cash on closing day; title disburses to the seller and records the carry-back note in second position. The recorded note then repays our funds plus a flat 2.5%, usually same-day through title. It is the Morby Method structure. Confirm the second-lien recording and disbursement order with your title company before you set the closing date.
Why is Stack useful in Austin's corrected market? +
After the post-2022 price correction, more Austin sellers — especially equity-rich owners who bought before the run-up — are open to carrying financing rather than chasing a softer cash market. That makes seller-finance structures more common on East Austin and hill-country deals, and Stack supplies the cash Texas wet-funding rules require in escrow to close them. Our funding hinges on the contract's seller-financing terms and a title company ready to record the second-position note, not on where Austin prices are in the cycle.
Stack or Echo for an Austin creative-finance deal? +
Use Stack when the seller is carrying financing and a recorded second-position note repays us after closing — increasingly common on Austin creative-finance and hill-country deals. Use Echo when you are assigning a straight contract and your assignment fee repays the funded down payment from seller proceeds the same day, though Austin's tighter post-correction spreads can make that harder. Both front cash at the closing table; if the seller is carrying paper, Stack is the cleaner fit. Confirm the structure with your title company.
Apply for Stack Funding in Austin, TX
Submit your application online — same-day decisions for complete files before 2 PM Eastern.