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  STACK METHOD — DRAFT TEMPLATE — NOT LEGAL ADVICE — ATTORNEY REVIEW REQUIRED
  Provided "as is," for education only. No liability accepted. [BRACKETS] = fill in.
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                       CLOSING CHECKLIST (Stack Method)

— BEFORE CONTRACT —
[ ] Property genuinely cash-flows; conservative senior LTV leaves an equity cushion.
[ ] Term Sheet (Doc 01) agreed; LOI (Doc 02) accepted.
[ ] Seller given the Seller Disclosure (Doc 11) and time for independent counsel.
[ ] Attorney engaged to draft/review all documents for your state.
[ ] CPA to confirm tax items for both sides.

— CONTRACTS —
[ ] Purchase & Sale Agreement (cash) signed (Doc 03) — no finance terms on it.
[ ] Seller-Financing / Security Agreement signed (Doc 04).
[ ] Seller Disclosure & Acknowledgement signed (Doc 11) — before/with the above.
[ ] EMD deposited; title/escrow opened.

— DILIGENCE —
[ ] Appraisal ≥ required value. [ ] Title clear/marketable. [ ] Inspection done.
[ ] Senior loan (DSCR) approved; guaranty/credit sponsor in place if needed (Doc 09).
[ ] Insurance bound; tax/HOA status confirmed.

— ENTITY —
[ ] Property LLC formed; EIN obtained; bank account opened.
[ ] Operating Agreement signed (Doc 05) with seller protections + balloon clauses.
[ ] Balloon-Extension Addendum attached (Doc 12).

— CLOSING DAY (two same-day legs) —
[ ] LEG 1 — ACQUISITION: senior loan funds (and transactional/bridge funds if used);
    deed recorded to the Property LLC; senior Deed of Trust/Mortgage recorded (Docs
    07/08); seller paid cash down ($[CASH DOWN]); bridge funder repaid same day.
[ ] LEG 2 — CONTRIBUTION: seller's carried balance converted to capital contribution;
    seller admitted as Member (Doc 06); any seller subordinate lien recorded (Doc 08).
[ ] Assignment executed if applicable (Doc 10); assignee assumes seller obligations.

— AFTER CLOSING —
[ ] Set up management; rent flows to the Property LLC account.
[ ] Auto-pay senior loan, taxes, insurance, HOA (the obligated payments).
[ ] Maintain reserves; keep the seller informed; calendar the balloon date.
[ ] Plan the refinance well ahead of the Balloon to pay the seller in full.