Involved In Real Estate · Richmond, VA · Member since 2014 · 40 posts · 7 votes
Hello BP Family!
All your advice and guidance is finally beginning to pay off! I have a lead who I am meeting tomorrow and hopefully making an offer!
I do have a quick question. During our initial conversation, he did mentioned he owed some back taxes (a few thousand). If I decide to make an offer, i am thinking about telling him that I'll pay his back taxes and give him a thousand or so in cash at closing.
However, I am uncertain as to how that process works. Would I have to pay off his back taxes before closing or can this be done at closing (using a double close process)?
If you can provide me with a little guidance on how I can take care of his back taxes (without spending my own money), I would greatly appreciate it!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
The taxes could be paid off ahead of time or at closing. Do it at closing, along with the $1000 money to him. That way if the closing doesn't happen you're not out the cash.
Wholesaler · Las Vegas, NV · Member since 2014 · 47 posts · 22 votes
12y
I agree with Jon, build this in information in your contract with the seller so it can be taken care of at the close of escrow by either your escrow agent or real estate attorney. You can also talk to the IRS about the back taxes and see if you can negotiate the price down since you are buying the property. They may not do it but it doesn't hurt to ask.