Tax Deed Sale Questions

[Jordan Archer]

I've been wholesaling, and want to expand to bidding on tax deeds, which I will then wholesale. I have the following questions:

1. Can you purchase tax deeds with hard money?

2. Are there any seasoning requirements before you resell a tax deed? (ie. do you have to wait any specific amount of time before resale)

3. Is the most typical way of re-sale done using a quit-claim deed? 

4. If I buy a property at auction, do the back taxes automatically get paid for with the money I use to purchase? (ie. after I purchase, will I be responsible for paying any back taxes)

Thank you!

Sincerely,

Jordan

[Michel Steele]

@Jordan,

I have bought several parcels in Florida in the past few months.

1. Can you purchase tax deeds with hard money?

You could, however when you bid on the Tax Deed auction and win you need to pay for the property by 1pm the next day. Failure to do so can ban you from future auctions. 

2. Are there any seasoning requirements before you resell a tax deed? (ie. do you have to wait any specific amount of time before resale)

There is no redemption period. You will however have to process the Tax Deed through a company like Tax Title Services in order to get title insurance. 

3. Is the most typical way of re-sale done using a quit-claim deed?

Special Warranty Deed would be better once you have TTS run the property which takes 45-60 days. 

4. If I buy a property at auction, do the back taxes automatically get paid for with the money I use to purchase? (ie. after I purchase, will I be responsible for paying any back taxes)

Yes. In a Tax Deed sale all back taxes are paid and liens wiped out including mortgages.  The counties run a ownership and encumbrance report using a title company to notify all interested parties.  I just bought a house on a Tax Deed auction in Eustis Fla for under $3000.00. It was listed as a 2bd 1 bath, but is actually a 1bd,1bath. i couldn't inspect it before auction because it was occupied. Do you due diligence.