Stack Funding in Iowa | Swift Deal Funding
Stack (Morby Method) funding in Iowa
Stack funding supplies the cash needed at the closing table when a seller carry-back note covers the buyer’s down payment but the closing agent still requires real funds to close. We wire that cash; the recorded second-position note repays us plus a flat 2.5%, typically the same day.
Iowa’s steady market suits creative finance. The state has a deep base of long-held rental properties and owners open to carrying paper rather than taking a full cash payout — the core of a Morby Method deal. Activity centers on metro Des Moines, with seller-carry deals also appearing in Cedar Rapids and Davenport. Moderate prices keep carry-back amounts modest. Funded amounts here typically run $20,000–$70,000, with capacity up to $10 million per transaction.
How a Stack deal closes in Iowa
Iowa is a wet-funding state, so the closing agent disburses at the table. For Stack, we provide the cash to close; the seller-carry note is recorded in second position with the county recorder, and our funds plus 2.5% are repaid out of the closing, usually the same day.
Iowa’s distinctive abstract-of-title system matters here: an attorney examines the abstract (often with Iowa Title Guaranty backing) rather than relying on conventional title insurance, and the abstract should be continued to reflect the new second-position lien. Closings run through title companies or closing attorneys. We require written confirmation that the carry-back note will record in second position as agreed. Local note: schedule the abstract continuation early so the lien position is clean before closing.
Pricing
Flat 2.5% of the funded amount, nothing upfront, collected on the closing statement:
| 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 carry-back amount large enough to cover the down payment plus closing costs
- An Iowa closing agent ready to record the seller-carry note in second position
- Written confirmation that the note will record as agreed (with the abstract continued)
A typical Iowa Stack scenario
A long-time owner of a duplex in Des Moines’s Beaverdale agrees to sell subject-to and carry a note covering the $45,000 down payment. The closing agent still needs cash to close. Stack wires the $45,000; the carry-back note is recorded in second position, the abstract is continued to show it, and because Iowa is wet-funding, our $45,000 plus the 2.5% fee ($1,125) is repaid at the closing table. You add a cash-flowing Des Moines duplex with none of your own money at the table.
Apply
Submit your purchase contract and seller-financing terms online. We coordinate with your closing agent on the carry-back recording.
Frequently Asked Questions
How does Iowa's abstract system affect recording the second note? +
Your seller-carry note still records with the county recorder, but Iowa's reliance on an abstract of title means the abstract should be continued to reflect the new lien position. Your closing agent — often an attorney examining the abstract, sometimes backed by Iowa Title Guaranty — coordinates this. We require written confirmation that the carry-back note will record in second position before funding. Because Iowa is wet-funding, repayment from that note typically settles at the closing table once everything is recorded as agreed.
Is Iowa a good market for creative finance? +
Iowa's steady, moderately priced market produces plenty of long-term owners and tired landlords with equity who are open to carrying a note rather than cashing out. That willingness is the foundation of a Morby Method deal. Metro Des Moines, Cedar Rapids, and Davenport all have older rental stock where seller-carry structures come up. Modest prices keep the carry-back amounts and the cash Stack provides at the table small, so the deals pencil cleanly.
How fast does Stack repay in Iowa? +
Iowa is a wet-funding state, so the closing agent disburses at the table once funds and documents are in place. For Stack, we wire the cash to close, the seller-carry note is recorded in second position, and our funds plus the flat 2.5% are repaid out of the closing — typically the same day. Iowa's abstract continuation can add a preparatory step, so coordinate the timeline with your closing agent ahead of time.
Apply for Stack Funding in Iowa
Submit your application online — same-day decisions for complete files before 2 PM Eastern.