I found an investor for a rental property. The investor will act as the "bank" and provide the money for the investment property at maybe a 5% interest rate. Myself, the "landlord", will find a property to buy and manage the property. My question is how will the taxes work. The investor can wire transfer the money to either the seller or the lawyer directly. Will there be any taxes involved with that? (aside from the closing costs). The terms for the balloon mortgage would be 30 year fixed rate amortization table with a 10 year balloon payment. The landlord will pay the mortgage payment to the lender every month. Does the lender owe taxes to the government for the mortgage payment? Does the lender or landlord owe taxes on the balloon payment at the end of balloon mortgage?