Stack Funding in Houston, TX | Swift Deal Funding
Stack (Morby Method) funding in Houston, 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 Houston — the largest wholesale market in the largest wholesale state, with a deep creative-finance investor community — that gap shows up constantly on subject-to and owner-finance deals.
With no zoning, relentless infill activity, and a median sale price around $345,000, Houston produces a steady stream of seller-financed deals from Sharpstown and Spring Branch to Third Ward and the energy corridor. Typical Stack amounts here run $40,000 to $150,000, 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 Houston
Texas closes through title companies and is a wet-funding state — cash must be in escrow before disbursement, which is exactly the gap Stack fills:
- The deal is structured so the seller carries a note covering the down payment and closing costs.
- We wire the cash needed at the table on closing day.
- Title disburses proceeds to the seller and records the carry-back note in second position.
- The recorded second-position note repays our funds plus the flat 2.5% — typically same-day through title.
Confirm with your Houston 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: Houston’s active creative-finance scene means most investor title offices already handle second-lien recordings — confirm yours does before closing.
A typical Houston Stack scenario
An investor buys a Sharpstown rental subject-to and the seller agrees to carry an $80,000 note covering the down payment and closing costs. Title still needs that cash in escrow to close under Texas wet-funding rules. We wire $80,000 on closing day; title disburses, records the carry-back note in second position, and that note repays us $80,000 plus the 2.5% fee ($2,000) — $82,000 — same-day. The investor closes the creative-finance deal 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 a Houston seller-finance deal? +
Stack provides the cash a Houston 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 yet. We wire that cash on closing day; title disburses to the seller and records the carry-back note in second position. That 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 closing.
Why is Stack a fit for Houston creative-finance investors? +
Houston has a deep, education-driven investor community running subject-to and owner-finance deals across submarkets like Sharpstown, Spring Branch, and the energy corridor. On those deals the seller often carries a note covering the down payment, but Texas wet-funding rules still require cash in escrow to close. Stack bridges exactly that gap. Our funding does not hinge on the property or zoning — Houston has none anyway — but on the contract's seller-financing terms and a title company ready to record the second-position note.
Stack or Echo for a Houston deal with seller financing? +
Use Stack when seller financing is part of the structure and a recorded second-position carry-back note repays us after closing — common on Houston subject-to and owner-finance 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. Both front cash at the closing table; the difference is the repayment mechanism. If the seller is carrying paper, Stack is the right tool. Confirm the structure with your title company.
Apply for Stack Funding in Houston, TX
Submit your application online — same-day decisions for complete files before 2 PM Eastern.