● The whole play, drawn out

The Stack Method, visualized

Follow the money. Every box and arrow below is pulled from what Ben actually says on the calls — the numbers come from the $225k and $200k examples he walks through.

1 · The money flow of a single deal

Two lenders, one LLC, a happy seller. Example figures: a $225,000 purchase.

Debt Fund finances the down payment ≈ $80,000 Transactional Funder funds the escrow leg · 1-day ≈ $125,000 New LLC formed during escrow holds the property title stays clean Seller paid full price at closing cash, leg 1 Seller's balance becomes a capital contribution → keeps ~5% equity in the LLC ≈ $125,000 Both legs close the same day What you actually bring to the table The fund covers the down; the transactional funder covers the escrow. Your real out-of-pocket is essentially just the appraisal fee and earnest money (EMD) — the rest is structured. Your cash in ≈ appraisal + EMD

Step by step

Each step pairs the move with the illustration from the home page.

1

Meet the full price

Agree to the seller's full asking number (assuming it appraises). You're not haggling price — you're trading a strong price for aggressive terms and more equity paid up front. "More aggressive than bank terms."

The trade: full price ⇄ better terms. If the seller wants plain bank terms, it's not a fit.
2

Finance the down + the escrow leg

The debt fund finances the down payment (~$80k). A separate transactional funder covers the escrow leg (~$125k) for a one-day close, then gets paid back at closing.

Two lenders, two jobs. Don't confuse the fund (down) with the transactional funder (escrow).
3

Stack the seller into the LLC

A new LLC is formed during escrow to hold the property. On the same day, the seller's remaining balance is converted into a capital contribution — they keep a small (~5%) equity position instead of a note. Title stays clean.

Creditor → member. The seller becomes a passive part-owner, not a lienholder.
4

Refinance the seller out — tax-smart

At the balloon (often 5–7 years) you refinance and pay the seller from the new loan proceeds. Because they hold a membership interest, that payout is a debt-financed distribution — debt received, generally not taxed as income. (Confirm with a CPA.)

Forgiving exit: even a weak refi is survivable across a multi-deal pipeline.
5

The end buyer can actually finance it

Because the property sits cleanly in the LLC (no wrap, no lien), an end buyer/assignee can get a loan on the whole property and leverage up — Ben calls it a "130% strategy," with the buyer often walking with ~$40k at their close.

This is the fix. A plain seller-finance note would have blocked the end buyer's loan.
6

Protect both sides

The operating agreement builds in a 60-day cure: miss an obligated payment (taxes, insurance, HOA) and, if uncured for 60 days, the seller automatically becomes 100% majority equity of the LLC — essentially getting everything back.

Aggressive, not predatory. The seller has a real safety net baked into the structure.

2 · The timeline

From a two-leg same-day close to the balloon-refi exit.

Day 0 — Close Leg 1: buy + pay seller Leg 2: convert to capital contribution Years 1–6 Step-up payments 1% → 2% → … → 6% Balloon Refinance & pay seller debt-financed distribution (tax-efficient)

3 · The 60-day default rule

The seller's safety net, straight from the operating agreement (Clip A).

Buyer misses an obligated payment taxes · insurance · HOA 60-day cure window time to fix the miss If uncured → seller becomes 100% majority equity of the LLC gets everything back

Illustration gallery

All visuals generated for this course (FLUX-2 klein-9b). Click to enlarge.

Diagrams summarize what Ben describes on the recordings for study purposes; figures are his round-number examples. Not legal, tax, or investment advice — confirm any structure with a qualified attorney and CPA.