If you want to buy or own real estate, houses, condos or land in Florida, or are interested in investing in Florida properties and want to be a serious investor in any of them, the following information may be the perfect option for you.
Florida is a type of ‘hybrid’ state in the sense that it maintains both the lien and deed sales, or government auctions of sales of defaulted land. The redemption period in Florida is 2 years. This means that the registered owner of the delinquent property is entitled by law to ‘redeem’ or pay back taxes plus interest and penalties owed at any time during that 2-year period, including up to the time of the public auction. of the writing. .
Some counties interpret this law in favor of the delinquent owner and even allow them to redeem it just before the tax deed is delivered to the highest bidder. Because of this, the investor in the link has no guarantee of obtaining the deed.
Some may do so only if no other party is interested in bidding on the property, but due to Florida law, which states that all delinquent property must go to public auction, there is no guarantee of owning the property!
This is the reason why the investment in Tax Deed exceeds the investment in Tax Lien. With Tax Deed, the goal is to invest in ownership of the deed.
In general, those who invest in tax lien sales are investors with larger sums of money, or the ‘institutional investor’ who may have millions of dollars to invest in lien certificates. For complete Florida statutes, see Florida Statue 197.542 ‘Sale by Public Auction’.
Florida normally holds lien sales once a year in May and is a ‘lower interest rate offer’ state. The maximum interest rate is 18% per annum, however, most larger investors lower the rate to a minimum of 05% to obtain the lien certificate, simply because the law states that if the property is exchanged, all penalties and interest go to the certificate. holder, and it is in your interest to invest in the link because of this. But if the property goes to public auction, the money from the oversupply ‘by law’ must go to the original owner of the property, but is often withheld by the county if the original owner cannot be found, and is placed in general revenue. , but it never goes to the investor’s tax lien.
Research shows that the institutional tax lien investor can often keep the deed to undesirable land, such as an easement or wet parcel of land, or even one with a sinkhole. This is because they do not focus on what is known as “due diligence” simply because it is impractical and time consuming as they typically buy large blocks of lien certificates.
By the very nature of the Florida system, it automatically ranks properties from sales in tax arrears that are more likely to go to the government’s public auction of tax deeds than those that may waste time for the investor who may wish to own the property. property without that investor. (as in the case of the tax-lien investor) having to wait two full 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. In other words, the larger investor who does not necessarily want to own the property, but who wants to benefit from the interest and penalties paid when the property is redeemed or sold at public auction, works on the “ front end ” of the system: this may take more than two years, and the small to medium-sized investor who wants to ‘grow’ a small nest of eggs, works on the ‘backside’ of the system, and does not have to wait 2 years, working just four weeks before the public auction of non-traded properties, and you immediately win the property in the public auction on the back-end, if you are the highest bidder.
The ‘front-end’ investor does not have immediate ownership satisfaction, but the ‘back-end’ investor does.
Due to the nature of the Florida Tax System and Sales of Tax Deeds, the Florida Tax Deed system works ‘smarter’ by focusing on the ‘back end’. Learn how to become an expert on how to protect property, and ultimately how to profit from it through smart marketing.