Seller/ Owner Financing--Taxes? Insurance??

At settlement, the title company will pro rate the taxes. After that you will responsible for all taxes. At settlement you will need a paid insurance binder showing proof of insurance. Seller financing requirements are just like using a bank in regards to the above items.

so you have to go in even lower than I thought to be able to pay for insurance and taxes.

what situation is it that you don't have to pay for the taxes and insurance but still lock up the property and be able to sell it for a quick profit? i thought there was a way through owner financing.

Any time the property transfers into your name you are going to incur costs. If you did a land installment contract (legal in Maryland), then you would not pay any transfer cost. You would have to pay a recording fee to record the contract. At that time you will have control of the property until you sell, or rent it. At that point you would pay transfer cost. If you wanted to get a large sum of money and still have control of the property, you could do a life estate at which time after death of the buyer or leaving the property for a period of time, the property would revert back to you. Or you could do a lease for life. It's is set up bascially the same way except the property never transfers out of your name. You would also get a large sum of money up front, but then you would not receive any additional rents. The good thing is that you get a lot of cash upfront that may help with the next deal. You will make a profit in both these situations long term. Short term you make your money by buying it right and selling it for a profit. Hopes this helps. Robert

Whoever owns the property pays the taxes. Read Deans explanation of a sandwich lease option. I am having some success in NJ implementing this strategy.

I also live in NJ. send me a private message and maybe we can pick each other's brains since we are both doing this is NJ!!