Stack Method - Not sure if this will work.

I understand how the Stack Method works -

we have 1st position - typically a DSRC at 70-80% LTV

Then a seller 2nd for approx 20-30% where there must be enough equity

for the seller 2nd to cover the down payment plus some costs.

I have been working with someone who wants to get a stack method working.

He brought me this -

12 Unit Multi-family

Asking: $2,500,00

Where the seller is offering:

I understand there is no 1st position DSCR type loan.

But, in this case if the seller is offering 80% seller financing -

could this work ? It seems, at 1st glance, there might be enough equity

there to cover the down payment plus costs ??

Or, am I missing the boat, and there must absolutely be 1st position

DSCR loan in 1st position for this to work ?

6 comments

Stack Method - Not sure if this will work.

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