Scammer trying to get a big $5 Million pay day from me got ratted out within one phone call! Hope this is a good reminder to others to have a vetting process in your business, if needed! I’m laser focused on supporting Wholesalers + Investors with Transactional Lending nationwide, across all RE asset classes. I don’t normally see much scammers come my way currently in my business, but Scammer are definitely out there! Some scammers are more savvy than others, and having a process in place to disqualify requests as quickly as possible has been a game changer. 👉1.) I am focused on & confident on 3 lending types; Earnest Money Deposit (EMD), Double Close, and Seller Carry-back funding. 👉2.) I ask specific questions about potential funding request 👉3.) I also vet the person requesting the funds (especially with a $5 Million ask!) Here are some of the red flags I identified on a brief 10 min phone call with this person: 🚩Had a hard time explaining their transaction they were trying to accomplish 🚩Was unsure of the type of funding request they wanted to pursue with me on BUT definitely wanted $5M! 🚩Told me I would simply put funds in the deal and get those same funds back the same day. Meaning, the funds weren’t for closing (this is NOT how transactional lending works) 🚩Person could not specify how I would get paid back + my fee 🚩Person was acting very strange - a bit nervous - and mixing up their story (strange!) Ugh, I could go on, but ultimately my vetting process, knowledge & experience helped me identify several red flags within minutes. Funds not lost and bad deals avoided is a win in itself! Glad I didn’t waste more time on this person and their so called “deal”! Stay safe out there, friends!

#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!👇