#WednesdayWin 🙌🏼 I didn’t fund this multifamily EMD (earnest money deposit) deal! That’s right, not all money is good money. I rather my funds kept safe in my bank account vs lost on a deal a buyers attorneys set up as a trap! I’ve been working with this investor on a multifamily deal in TX over the past month. Everything was going well, until the last minute. I’m so so grateful I have had 7 years experience to lean on to notice something isn’t right… This investor was very transparent. But when it came to working with his attorneys, things got messy. Let me explain… Attorneys are great assets but sometimes may not have the best interest for the 3rd party lenders on the transaction. Most attorney’s only have the clients best interest in mind.. not other parties involved on the deal. I had my mutual release addendum (MRA) provided to the investor and attorneys, and boy did they butcher this document! My own personal attorney wrote this document for me - NOTE: if you’re a private money lender, always hire an attorney or have a community to lean on to ensure your funds are protected! The attorney’s red-lined majority of my document and said they wanted the mutual release addendum to match the PSA (purchase and sale agreement). This was a red flag for me! The purpose of an addendum isn’t so it matches the initial document… its to simply amend and/or supersede any language in the initial document… Without edits, at a high level, my MRA protects my funds where I have full control of my funds and no other party has authority over this. It also states the funds are refundable throughout the refundable period (not limited to the due diligence period) either to a specific date OR through the close of escrow date. …and those attorney’s edits?… well… They removed majority of the language from my document and in place of it allowed the buyer to make it okay for everyone involved on the transaction to have access to my funds! They added that the title company could use my funds to pay for any non-refundable buyer’s costs! Additionally, they stated my EMD funds would be charged in the event of damage.

Had a Double Close lined up and ready to fund. Then the escrow agent sends the A-B contract + HUD to the end buyer and their lender… Yeah… you already know what happened next. My borrowers $100K wholesale fee lost 💀 Deal = stalled. Let me say this straight up... That’s not a “mistake.” That’s a title company that doesn’t understand Double Closes. Got a call from my borrower today… frustrated, heated, ready to go off. And honestly? I don’t blame him! But feeding that energy doesn’t fix deals. So we shifted gears: 👉 Acknowledge the problem (don’t ignore it) 👉 Refocus on what can still be controlled 👉 Map out the next move to keep the deal alive 👉 And yeah… gave him a quick reality check + pep talk Because deals don’t die from problems — they die from how people respond to them. I still believe this wholesaler can get this done! How would YOU handle this? • Kill the deal and move on? • Switch title companies and push forward? • Try to salvage the current buyer? Drop it below 👇

It came back $90K below the purchase price. - OUCH! Here’s why.👇 This deal in particular was a single family deal, but the same lesson applies to Multifamily deals too! (Hope this helps anyone NOT make the same mistake!) The seller had added an extra bedroom and bathroom during renovations. 🚨 But none of the work was permitted. 🚨 So when the appraisal was done… The appraiser couldn’t count the additional 1 bed / 1 bath. Instantly the value dropped. 😩 And in Stack Method deals, that creates a big problem. Because now the Transactional Funder may be asked to cover the gap between the appraisal value and the purchase price, on top of the down payment required by the primary lender. That’s a tough situation when the numbers no longer support the structure of this awesome acquisition strategy! Unfortunately this deal didn’t close. 💡But it taught me a simple lesson. Before sending & signing a PSA, buyers should always ask the seller: “Has any work been done on the asset — and was it permitted?” ⭐ Sometimes one small question can prevent a $90K problem. 👋 Anyone closing on Stack Method (Morby Method/ Seller Carry-back) deals? Let's Connect!

That’s rarely the real reason. The truth? Most deals collapse because the investor doesn’t fully understand the structure they’re creating. Creative finance strategies like the Stack Method acquisition strategy is powerful, but this strategy has variables that can quietly kill a deal if you don’t account for them upfront. Here are a few I see investors miss all the time: • Lien position confusion • Exit strategy misalignment – Your exit has to pay back the primary loan & the seller note • Loan due-on-sale clauses – Especially if the primary lender doesn’t allow 2nd lien positions • Balloon payments – If you can’t refinance later, the deal becomes a ticking clock • Seller expectations – Monthly payments sound great until the seller realizes how long the term actually is • Cash flow assumptions – One wrong rent or expense estimate and the numbers break The Stack Method acquisition strategy isn’t “easy deals with no money.” It’s real deal structuring. The investors who win with it understand the moving pieces before they put the deal under contract — not after. Curious… Anyone actively doing Stack Method deals or looking to get into assets with this strategy? What are some learning lessons as an experienced investor? Or What are some burning questions you have about this strategy? Comment below!👇

I feel like we give a whole lot of love in this community to investors and deal finders. An underserved group are the Capital Raisers. If you have experience raising capital and are looking for a team or partners, I would like to connect you with the right people. We have a lot of deals going through this community in the mentorship and in this broader platform here in skool. The link below is a survey. If you are a capital raiser, I would like to learn more about you and your experience. While I'm looking for more operators on my personal team, I would also like to align you to other teams and investors who are working on larger capital raises around the country. This questionnaire is for internal community mapping only. It is not an offer to sell securities or a solicitation of capital. https://forms.gle/1W2LbikhetctS5YK7