Stack Funding in Arizona | Swift Deal Funding
Stack Funding in Arizona
Stack — the Morby Method — is the cash that has to be in escrow when a seller is carrying the down payment but the escrow account still needs real money to close. We wire it in; a second-position seller-carry note, recorded at closing, pays us back plus a flat 2.5%. It’s built for the Arizona creative-finance deal that pencils on paper but stalls because escrow needs liquidity. Ticket sizes here run $40,000–$150,000, with capacity to $10 million.
Arizona’s deep investor market — Phoenix at the center, Tucson and Mesa close behind, 7.4 million residents statewide — generates a steady supply of subject-to and seller-finance structures. In a market this hot, owners sitting on equity will often carry a note rather than cash out, and Stack lets you close that structure without freezing your own money inside escrow.
Direct lender, no credit check, no income, no tax returns. Your contract and the seller-financing terms are the file.
How Stack Funding closes in Arizona
Arizona closes through licensed escrow agents, not attorneys, so the agent who runs settlement is also the one who records the documents. On a Stack deal that agent does two jobs: releases our cash at closing and records the seller-carry deed of trust in second position with the county recorder. Before we fund, we need that agent’s written commitment to record the note as agreed.
The record-first rule sets the rhythm: the escrow agent disburses only after the recorder posts the deed, so our cash sits in escrow until that confirms, and the second-position note records in the same closing-day pass behind the first lien. Maricopa County’s e-recording keeps it moving, but the close still depends on the recorder posting that day. The carry-back has to cover the down payment plus closing costs. Walk the recording sequence and timing through with your Arizona escrow agent.
Pricing
Flat 2.5% on the funded amount, settled on the closing statement with nothing upfront:
| Funded Amount | Fee |
|---|---|
| $50,000 | $1,250 |
| $100,000 | $2,500 |
| $500,000 | $12,500 |
| Up to $10,000,000 | $250,000 |
What you’ll need
- Executed purchase contract with seller-financing terms
- A seller carry-back that covers at least the down payment plus closing costs
- An Arizona escrow agent ready to record the second-position note under the record-first sequence
- That agent’s written commitment to record the note as agreed
A typical Arizona Stack scenario
An investor sets up a subject-to deal on a Phoenix single-family rental: the seller carries a $90,000 note covering down payment and closing costs, but the escrow agent needs $90,000 of real funds in escrow to close. We send $90,000 ahead of closing. Documents sign, the Maricopa County recorder posts the deed, the escrow agent releases funds and records the seller-carry note in second position; that note pays us $92,250 (the $90,000 plus the $2,250 fee), and the investor’s own capital never gets tied up.
Apply
Send the purchase contract and seller-financing terms; we’ll coordinate the carry-back recording with your Arizona escrow agent and the record-first timing.
Frequently Asked Questions
How does Arizona's record-first rule play into a Stack deal? +
Stack drops real money into escrow so a seller-carry deal can actually fund. Arizona records before it disburses, so the cash we send waits in the escrow account until the county recorder posts the deed; the seller-carry note in second position records in that same pass. In Maricopa County the e-recording turnaround is quick, but the close still moves on the recorder's clock, not the signing table. Have your escrow agent map the recording window before you set the date.
Who records the carry-back note on an Arizona Stack? +
Your licensed Arizona escrow agent. Since the state runs closings through escrow agents rather than attorneys, the same agent who handles settlement records the seller-carry deed of trust in second position with the county recorder. We need that agent's written commitment to record it as agreed before we release funds. In Phoenix and Tucson this is bread-and-butter creative-finance work, but confirm the agent is set to record behind the first lien.
When is Stack the right call in Arizona? +
When a seller agrees to carry the down payment but escrow still needs real cash to close. Arizona's busy investor scene throws off plenty of subject-to and seller-finance deals — common around Phoenix and Mesa on equity-rich properties. We put the cash into escrow; the recorded carry-back note pays us back plus a flat 2.5%. If the deal instead has a fat assignment fee, Echo is usually the cleaner tool.
Apply for Stack Funding in Arizona
Submit your application online — same-day decisions for complete files before 2 PM Eastern.