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What does the term "stacking a deal" mean? |
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In order to work out what borrowing the rent will support, and if there is possible cash-flow from the rent, you can do various different calculations to work this out. This ultimately indicates whether a deal is a "deal" or not.
Generally speaking, deals only stack when you have achieved a significant discount from the genuine Open Market Value of the property.
We use the following quick calculation:
monthly rent x 12 divided by (product interest rate) divided by (product rental stress)
We have some stacking software included in our Investor's Kit which you can purchase in our on-line shop.
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