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  STACK METHOD — DOCUMENT VAULT — *** READ THIS FIRST ***
  DRAFT TEMPLATES · NOT LEGAL ADVICE · ATTORNEY REVIEW REQUIRED
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These are EDUCATIONAL DRAFT TEMPLATES for the "Stack Method" creative-finance
structure. They are NOT legal or tax advice, NOT finished or filed documents,
and NOT guaranteed to be valid or enforceable in any state. Real-estate,
contract, securities, and tax laws vary by jurisdiction and change constantly.

YOU MUST have a licensed attorney draft, review, and adapt every one of these for
your specific deal and state, and a CPA review the tax items, BEFORE any use.
Provided "AS IS," for education only. The authors accept NO LIABILITY for any use.
[BRACKETED ITEMS] are placeholders — fill in or delete them.

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HOW THE DOCUMENTS FIT TOGETHER (typical order of operations)
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1.  Term Sheet ............................. 01  (non-binding summary of the deal)
2.  Letter of Intent (LOI) ................. 02  (sent to seller/agent to open it)
3.  Purchase & Sale Agreement (CASH) ....... 03  (plain cash contract — NO finance terms)
4.  Seller-Financing Security Agreement .... 04  (the overlay holding ALL finance terms)
5.  Seller Disclosure & Acknowledgement .... 11  (fairness — sign BEFORE the PSA/security)
6.  LLC Operating Agreement ................ 05  (capital-contribution LLC; equity, cure, balloon)
7.  Capital Contribution & Admission ....... 06  (admits seller as member; converts the balance)
8.  Debt-Fund Loan Agreement ............... 09  (the senior ~70% loan to the LLC)
9.  Promissory Note ........................ 07  (the note for that loan)
10. Deed of Trust / Mortgage ............... 08  (secures the note; state-specific)
11. Assignment of Purchase Agreement ....... 10  (if you assign to an end buyer)
12. Balloon-Extension Addendum ............. 12  (the 2-3 year protection clause)
13. Closing Checklist ...................... 13  (order to sign/record/fund)

KEY DESIGN RULE OF THE STACK METHOD:
- The Purchase & Sale Agreement stays a PLAIN CASH CONTRACT (any state form works).
- ALL seller-financing terms live in the SECURITY AGREEMENT, so the kit overlays
  any purchase agreement.
- The LLC OPERATING AGREEMENT carries the seller's equity, the 60-day cure
  (-> seller becomes 100% member), and the balloon + balloon-extension clauses.

FAIRNESS / NON-PREDATORY NOTE:
The Seller Disclosure & Acknowledgement (11) is not optional in spirit. The seller
is moving from a first-lien creditor to a subordinated LLC member behind a senior
loan. Disclose that plainly, in writing, and tell the seller to get their own
attorney and CPA. A fair deal survives being explained honestly.

SECURITIES WARNING (debt fund / capital raising):
Forming a pooled "debt fund," selling LLC membership interests to passive
investors, or paying someone for their credit/guaranty can implicate federal/state
SECURITIES laws and licensing. Documents 05, 06, and 09 touch this. Engage
securities counsel before raising money from anyone or pooling capital.
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