MM

Morby Method Deal Lab

DSCR first lien + seller-carry second. Every number recalculates as you type.
Load example:

Quick mode

Five inputs, headline answer. These are the same fields as the full breakdown below, so everything stays in sync.

$
%
%
%
$
Your cash to close
—
Cashflow / month
—
DSCR (1st lien)
—
Combined LTV
—
Seller walks with
—
Pre-closing

Who brings what to the table

Percent and dollar fields are linked — edit either one.

EditableAuto-calculated

Seller

Asking / purchase price
$
Seller financing (2nd lien)The note the seller carries back
%
$
Seller closing costs
%
$
RE commission
%
$
Outstanding loan payoffSeller's existing mortgage, paid at close
$
Seller's costs to close

Buyer

1st lien financing (DSCR)
%
$
Down paymentAlways 100% − 1st lien
Buyer closing costs
%
$
Origination / points% of 1st lien
%
$
Buyer's cost to close
Buyer's own contributionCash you actually bring at closing
$
Transactional funder covers

Transactional funder

Funding amountFronts the down payment + costs for one day
Funding fee
%
Total payback (same day)

Escrow at closing

1st lien wires
Transactional funder wires
Buyer wires
Total in escrow
Post-closing

Where everyone lands after the swap

The seller's note replaces the down payment and the transactional funder is repaid.

Seller

Price received
− Closing costs + commission
− Loan payoff
− Note carried back
Cash at closing

Buyer

Buyer closing costs
Origination
Transactional fee
Down payment not covered by notes
Total out of pocket

Property liens

1st lien (DSCR)
2nd lien (seller)
3rd lien (gap / private)
Combined liens
Combined LTV (of price)

Transactional funder

Funded
Fee earned
Repaid same day

Repaid out of the seller's proceeds at the moment the seller note is recorded. If the note is smaller than the down payment, the difference is yours to bring.

Cashflow

Does it carry itself?

Set each lien's terms. A 0% / 0-year seller note is a silent second.

1st lien · DSCR

Interest rate
%
Amortization
yr
Interest-only
Monthly payment
Yearly

2nd lien · Seller note

Interest rate
%
Amortization0 = no payments (silent)
yr
Interest-only
Balloon due0 = none
yr
Monthly payment
Yearly

3rd lien · Gap / private money

AmountStacked Method layer — leave 0 for pure Morby
$
Interest rate
%
Amortization
yr
Interest-only
Monthly payment
Yearly

Income & expenses

Rent / month
$
Occupancy
%
Operating expenses / monthTaxes, insurance, maintenance, mgmt, reserves — not debt
$
NOI / month
NOI / year
Combined debt service / month

Coverage & cashflow

DSCR — 1st lien onlyWhat the DSCR lender underwrites
DSCR — all liensWhat you actually live with
Cashflow / month
Cashflow / year
Cash-on-cashYearly cashflow ÷ your cash in
Exit

Refinance or sale

Can a refi clear both liens, or do you bring cash?

Exit parameters

Property type
Exit / refi LTV
%
Exit value (comps / ARV)
$
Selling costs (if sold)
%

Exit results

Exit value
Max refi loan at exit LTV
Combined liens to clear
Equity at exit
Cash out (or in) at refi
Net if sold today (after selling costs)
Scenarios

Side by side

Add a scenario in the tab bar, tweak it, and compare. Best value in each row is highlighted.

1Find a seller who'll carry

The seller agrees to hold a 2nd-position note equal to (or near) the buyer's down payment.

2Stack the capital

A DSCR lender funds the 1st lien (commonly 75–80%, sometimes 85%). A transactional funder fronts the disclosed down payment for one day.

3Swap at closing

The seller's note is recorded and replaces the down payment. The transactional funder is repaid from the seller's proceeds the same day.

4Own it

You hold title with a 1st lien (DSCR) and a 2nd lien (seller carry). Your cash in is fees, not a down payment.

Educational model, not a term sheet. Every lender treats seller seconds, combined LTV and transactional funding differently — confirm the 1st-lien program allows a subordinate seller note and full disclosure of the transactional funds before you write the offer. Scenarios are saved in this browser only.