REAL ESTATE INVESTOR FINANCING
Seller stays in → Stack. Everyone cashes out → Echo. A simple decision rule.
Seller stays in → Stack. Everyone cashes out → Echo. If the seller remains financially involved (the seller carry repays or supports the transactional capital), it's a Stack. If the wholesaler exits entirely and the spread repays the transactional capital, it's an Echo.
The seller carries financing that stays in the deal after closing. The primary loan is typically DSCR or private/hard money. The buyer is usually keeping the property. The seller carry repays or supports the transactional capital; the transactional capital fills the closing-table gap the primary loan + seller carry don't cover.
Part of a double close. The wholesaler purchases from the seller (A-B) and resells to an end buyer (B-C). The end buyer has primary financing for the B-C. Echo capital supplies the B-C down-payment gap. The wholesaler's spread repays the Echo capital at settlement — the wholesaler exits entirely.
In a Stack, the transactional capital exits at closing and the seller carry remains. In an Echo, the transactional capital exits at settlement and the wholesaler exits with it. The repayment source is different: seller carry (Stack) vs. spread (Echo).
Stack: the seller carry must cover the funding + fee + transaction costs. Echo: the B-C spread must cover the funding + fee + costs. If the supporting component (seller carry or spread) is too small, the structure doesn't self-fund and the deal must be restructured.
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Explore Transactional ProgramsEducational content only. Guides describe how financing structures generally work and are not approvals, commitments, or guarantees of terms. Programs, eligibility, leverage, rates, fees, terms, timelines, and availability vary by provider, property, location, borrower qualifications, documentation, and deal structure. All financing is subject to independent provider review, underwriting, and final approval. Green Fire Strategies does not guarantee approval, terms, closing, or funding.
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