Hey guys. I have a lead who owes 3 grand in backtaxes. I am wondering if the investor who purchases the property from me will need to pay thoses taxes and how much of closing costs will the seller that I am acquiring the property from actually will have to pay. I appreciate all responses. Thanks all!
Hi There,
Do you already have an accepted offer on the property? If not, I would factor in the amount owed on back taxes in your offer as an expense. For example, if you offer was originally going to be $20,000 on the property and you find out the seller owes $3,000 in back taxes, lower your offer $17,000 so that there is still enough room in the deal for profit for you and your buyer. Basically the back taxes DO HAVE to be paid, but you don’t want the back tax amount to come off the profit end of the deal, it needs to be factored into the offer as an expense.
I am very much a newbie in REI so someone please correct me if I am way off base. 
Shelley~
Shell, you must be a psychic, because that’s my exact deal! I was gonna offer 20k, but I lowered it down to 17k. I’m gonna try to wholesale it for 24k and just let my buyer know that 3k must be paid in back taxes, therefore making his purchase price 27k. The ARV on the property is 60k. I think I’m in the clear, I just want to know does my buyer pay all closing costs as well? If not, how much is the seller of this property actually expected to pay??
Okay, here’s my best shot at answering your question. Somebody PLEASE correct me if I am wrong or way off base, but here goes…
This will all depend on what you have agreed upon in your contract, but “typically” the seller pays closing costs associated with selling the property such as title, abstract, etc., and the buyer pays closing costs pertaining to the loan to purchase the property such as loan fees, etc. However, if your buyer is a CASH BUYER and does not require a conventional loan, which is the type of buyers we are looking for, than the seller will be paying the majority, if not all, of the closing costs.
Shelley~
shellwhip
there are no absolutes in real estate transactions, most costs are negotiable, except in fha/va type loans. customs of who pays for what vary from state to state. in texas seller often pays title policy, not always, in florida i am finding out buyer almost always pays title policy, in oklahoma title policy + abstract then split 50/50 for each buyer and seller.