Creative Acquisition Strategy

The Stack
Method

A buyer acquires an income-producing property using a DSCR loan stacked with a seller carry-back — closing with little to no money out of pocket.

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Stack Method Deal

Multifamily · 24 Units

4821 Riverside Commons Dr

Charlotte, NC 28273

Purchase Price $2,400,000

DSCR Loan (70%) $1,680,000

Seller Carry (30%) $720,000

SHIPP APEX — SAME-DAY ADVANCE Repaid at Closing

↳ Down Payment fronted $96,000

↳ Closing Costs fronted $48,000

This is not a third loan. Shipp Apex fronts the cash the buyer needs to show at closing. Title holds it. The moment the seller carry-back funds, Shipp Apex is repaid first — same day, as a line item on the HUD. No lien. No ongoing obligation.

70%

DSCR · 1st Lien

30%

Seller Carry · 2nd

Buyer Cash at Closing $0 Out of Pocket

Purchase Price Breakdown

How the Deal is Funded

70% DSCR Loan — 1st Position

30% Seller Carry-Back — 2nd

DSCR Loan — 1st Lien (70%)

Primary mortgage. The lender funds 70% based on the property's rental income — not the buyer's personal income. The lender must know about and approve the seller carry before this deal moves forward. No exceptions.

Seller Carry-Back — 2nd Lien (30%)

The seller finances the remaining 30% as a Note and Deed of Trust in 2nd position. Instead of all cash at closing, the seller holds this note — earning interest over time or negotiating a balloon payoff.

After Closing

How the Loans Sit on the Property

Two loans close in one transaction. Both are recorded at title. Every party knows the full structure before a dollar moves.

1st Lien Position

DSCR Loan — Primary Mortgage

First to be paid in any sale or default. The lender approved this deal knowing the carry-back sits behind them in 2nd position. This is the foundation of the entire structure.

70% of Purchase Price

2nd Lien Position

Seller Carry-Back Note — Recorded at Closing

The seller holds a Note and Deed of Trust for this amount, paid after the 1st lien. The seller earns interest income or negotiates a balloon payoff date. Both loans close simultaneously in one transaction.

30% of Purchase Price

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Bridge — Shipp Apex

We Front the Cash. You Bring Nothing to the Table.

This is not a third loan. The lender requires the buyer to show cash at closing to cover the down payment and closing costs. Shipp Apex fronts that cash — wiring it directly to the title company so the deal can close. The moment the seller carry-back funds, Shipp Apex is repaid first as a visible line item on the HUD. Same day. No lien on the property. No ongoing obligation to the buyer.

Same-day advance — repaid from carry-back proceeds at closing

From Contract to Keys

The Deal — Start to Close

Buyer + Seller

Agreement is Reached

Buyer finds the property. Seller agrees to carry 30% as a Note in 2nd position. The seller gets their price. The buyer gets the asset. This is the foundation of the entire stack.

DSCR Lender

Lender Approves the Full Structure

Lender underwrites based on the property's rental income. Must approve the carry in 2nd position before anything is signed. If anyone asks you to hide this from the lender — walk away. That is mortgage fraud.

Shipp Apex

We Review, Sign, and Wire

Once lender approval is confirmed, we send a service agreement and disclosure — both signed before any money moves. We wire the down payment to title and confirm our repayment is a visible HUD line item.

Closing Day

Two Things Happen Simultaneously

The DSCR lender funds 70% in 1st lien position. Simultaneously, the seller carry-back note for 30% is signed and recorded as a Note and Deed of Trust in 2nd position. Both close in one transaction.

Funds Distributed

Title Distributes. Everyone Is Paid.

From the carry-back proceeds, Shipp Apex is repaid first as a HUD line item. The seller receives their cash. The buyer owns the property carrying both loans — little to no cash out of pocket.

Underwriting Check

Does This Deal Work?

Everything on the buyer's side must fit under the lender's 70% LTV cap.

Mortgage Balance + Cash to Seller + Down Payment + Closing Costs + Funding Fee < 70% of Purchase Price

Whatever is left after 70% is what the seller carries as a note — that 30% gap is what makes this deal possible. If the numbers don't leave enough room, renegotiate before anything is signed.

What Shipp Apex Covers

The Down Payment and Closing Costs in the formula above. Shipp Apex fronts that cash at closing — it is not a third loan. The moment the seller carry-back funds, we are repaid first from those proceeds as a HUD line item. Same day. The buyer brings nothing to the table.

Know Before You Move

Two Things That Can Go Wrong

Risk 01

The DSCR Lender Says No to the Seller Carry in 2nd Position

Not every lender allows a seller carry-back note sitting behind their loan. If the lender declines, the deal cannot move forward in this structure.

Simple FixConfirm lender approval of the 2nd position carry before anything is signed or any money moves. This is step two — not an afterthought.

Risk 02

The Property Does Not Cash Flow Enough to Cover Both Payments

The buyer now carries two obligations — the DSCR mortgage and the seller note payment. If rental income does not cover both, the buyer loses money every month.

Simple FixRun the cash flow numbers before closing. Rent must cover both payments plus expenses. If it does not pencil — do not force it.

✓ Clean Deal

Full Transparency — Every Time

The lender is fully aware of and approves the seller carry. All parties sign disclosure agreements. Everything is documented at title. Shipp Apex is a visible line item on the HUD.

✕ Walk Away

Zero Tolerance for Hidden Carries

Anyone asks you to hide the carry-back from the lender or title company — that is mortgage fraud. No deal is worth the exposure. No exceptions.

Every Party Wins

What Everyone Walks Away With

🏠

The Seller

Full Price + Interest Income

Receives cash at closing and holds a note earning interest — or a lump balloon payoff — over time.

🔑

The Buyer

The Asset — Little to No Cash Down

Takes ownership of an income-producing property with minimal cash out of pocket at closing.

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