Tax Deed Treasures in Florida - With Tax Deed Investing, Owning the Deed is the Goal
Posted: Saturday, July 25, 2009
by Harry Connor Jr
TaxDeedTreasures.com
If you want to buy or own Florida real estate, Houses, Condos, or Land, or are interested in investing in Florida properties, and desire to be a serious investor in either, then the following information may be a perfect fit for you.
Florida is a 'hybrid' type of state in that it holds both Lien and Deed Sales - or Government Auctions of Tax Defaulted Land Sales. The Redemption Period in Florida is 2 years. This means that the registered owner of the delinquent property has the right in law to 'redeem' or pay the back taxes plus interest and penalties owed at anytime during that 2 year period, including right up to the moment of the public auction of the deed.
Some may do so only if no other party is interested in bidding on the property, but because of the Florida law, which states that every delinquent property must go to public auction, there is no guarantee of ever owning the property!
This is the very reason why Tax Deed investing beats Tax Lien investing. With Tax Deed investing owning the deed is the goal!
Generally speaking those who invest in the Tax Lien Sales are investors with larger sums of money, or the 'institutional investor' who may have millions of dollars in which to invest in the Lien Certificates. For the complete Florida statutes see Florida Statue 197.542 Sale at public auction'.
Florida normally holds the lien sales once a year in May and is a 'bid down the interest rate' state. The top interest rate is 18% per annum, yet most larger investors bid down the rate to as low as .05% to secure the lien certificate, simply because the law states that if the property is redeemed all penalties and interest go to the certificate holder, and it is in their interest to invest in the lien because of this. But if the property does go to public auction, the over bid monies 'by law' should go to the original property owner, yet is often kept by the county if the original owner cannot be found, and placed in general revenue, but never goes to the Tax Lien investor.
Research proves that often the institutional Tax Lien investor can be left holding the deed on an undesirable piece of land, like an easement or a wet land parcel, or even one with a sink hole. This is because they do not focus on what is known as 'due diligence', simply because it is impractical and time consuming to do so, as they are usually buying large blocks of lien certificates.
By the very nature of the Florida system it automatically sorts out the properties of Tax Defaulted Sales most likely to go to the government public auction of Tax Deeds from those that may waste the time of the investor who may desire to own the property without that investor (as in the Tax Lien investor) having to wait a whole two years to find out.
The system itself refines the process and eliminates unnecessary work for the serious investor who would like to own and possibly sell the property at a profit. Put another way, the larger investor who may not necessarily desire to own the property, but wants to profit from the interest and penalties paid when the property either redeems or is sold at public auction works the 'front end' of the system - this can take over two years, and the smaller to mid-sized investor who desires to 'grow' a small nest egg, works the 'back end' of the system, and does not have to wait 2 years, working only four weeks prior to the public auction of unredeemed properties, and immediately wins the property at the public auction at the back end, if they are the highest bidder.
The 'front end' investor has no immediate ownership satisfaction, but the 'back end' investor does.
Because of the nature of the Florida Tax System and Tax Deed Sales, the Florida Tax Deed system works 'smarter', by focusing on the 'back end'. Learn how to become an expert in how to secure the property, and finally how to profit from it by smart marketing.
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