Wholesale Deal with Back Taxes and Seller Financing

1 Reply

So I have a property under contract that has $15,000 in back taxes. Buyer made a offer that included seller financing in order to have cash flow for property repairs. Buyer also agrees to assume back taxes. My seller has a agreed to these terms. How should I proceed with this deal

Selling Price $24,000

Due at close $12,000

Financing $12,000 over 8 months

Assignment Fee $4,000

My question is how to structure this deal so that the seller is protected with the financing, yet still transferring tax responsibilities over to buyer

Okay so i recently went through a situation similar to this. A major question I have for you is this... Does the seller have 100% equity in the property to do a 100% seller financed deal or are there any banks involved? Also, I don't know your state laws but I can only assume that you cannot close on a property with back taxes because the title will have a lien. So your end buyer is willing to dish out 15K in back taxes BEFORE the deal even closes? Also, does your 24K sale price include that 15K in back taxes? or is your buyer actually paying 39K out the door? I ask all these questions because a lot of this situation doesn't make sense to me. If you can answer those questions then maybe we can help you out!

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