Yes it's true, I earned 18% interest on Florida Tax Certificates

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Yes it's true, I earned 18% interest on Florida Tax Certificates

Jean Norton
Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes

I myself, earned 17% and 18% interest on my investments and got every single certificate redeemed, paid in full with those interest rates. And I did it from the comforts of my own home in Austin, TX.

Bring your questions to tomorrow's tele-conference on Monday, May 5 at 4PM Eastern time and I will do my best to answer ALL your questions. Register for the call at http://jeannorton.com/tax-lien-call

I can tell you it's not brain science - but it is a legal statute in the Florida laws, so it can be a little confusing.

1.Florida laws DEMANDS 18% interest for unpaid taxes

2.The Counties PREFER to get their money NOW, and are willing to pass this interest on to you.

3.No other financial vehicle offers such a high interest rate (other than private transactions).

Please join me on Monday and I will tell all on how I did this! CLICK HERE to register.

Happy investing!

Jean Norton
http://jeannorton.com/dd

P.S. Please forward to friends that may be interested in earning Double Digits on their investments.

P.P.S. Yes, CNN even wrote about my results, CLICK HERE to read more.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Jean Norton

    congrats... I myself had the opposite results I bought 10k worth of certs and not one of them redeemed and I lost 100% of my money..

    I better tune in to see what I did wrong.

    I much prefer tax deed sales at least you own something when you buy it.

    I know many do well at this.. But its probably disengenouis to lead people on that they can simply buy these and 100% of them will redeem for these returns.

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  • Jason Farmer
    Corona, CA · Member since 2014 · 154 posts · 100 votes
    12y

    @Jay Hinrichs

    Tax deed and Tax liens have the same concept, the only difference is you hope to make intrest on the tax liens. But if the property isnt redeemed on either of the two types of sales you get the property in the end..How did you lose 100% of your money, were the properties junk properties with no value?

    I invest in both liens and deed sale states...In Indiana you get 10% intrest, i put 20k into liens, some of them get redeemed and i make my 10% intrest and the ones that dont get redeemed i walk away with a property free and clear after the redemtion period ends and my lawyer does his job..In Ca where i live i get the deed 30-60 days later with no intrest.

    Im just curious how you walked away with absolutely nothing?

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  • Spencer OBrien
    Investor · Wylie, TX · Member since 2013 · 102 posts · 4 votes
    12y

    @Jay Hinrichs Were you unable to foreclose on these properties? From my understanding you should be able to foreclose if they are not paid within the time period the statues state. Podcast 56 was very enlightening on this topic. I will hopefully be able to tune in to this phone call.

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  • Spencer OBrien
    Investor · Wylie, TX · Member since 2013 · 102 posts · 4 votes
    12y

    @Jason Farmer Beat me to it. This is why I love BP.

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  • Jason Farmer
    Corona, CA · Member since 2014 · 154 posts · 100 votes
    12y

    @Spencer OBrien

    I buy alot of liens, and i network with guys who buy hundreads of thousands of dollars worth of cets every year, and ive never heard of anyone losing money unless they bought a property that worth absolutely nothing, and at the same time who would invvest in a property with no value...After that redemption period has experied that property owner has lost all right in that property and as long as your lawyer does their part which only takes about 2 months after the redemtion period, you are the new property owner...its a win win situation, unless of course you got worthless property...But then youd still have some land value..but i dunno id like to hear how he lost

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Jason Farmer

    Jason from my experience and it was in Mississippi.. There was no way to buy a cert that you looked at.. the tax collector was selling them off so fast you just kind of had to take a pig in the poke.. I bought the certs and they never redeemed and I lost interest and just chucked it.. I suppose I could follow up on them but time and interest waned..For me and it was just throw away money . I know there are those that do very well at this.. But I do know that many properties that go to tax sale are not worth doing quiet title on as they are worthless. But I guess if you have the time to research each property and then if the sales are not like what I experienced in MS where they were selling a cert every 5 seconds and there was no ryme or reason to how they auctioned them off then I suppose it would work.

    I have bought 100S of tax sale properties in CA over the last 40 years in one county in particular we were the largest buyers of tax deeds in the county every year for 20 years..We bought anything that had any value. And since we had a big presence there we were able to get title insurance as soon as we got the deed ( like you stated 30 to 60 days after the sale)

    Much of what goes to tax sale though is worthless unbuildable lands in most counties in CA as you probably know. But every sale there would be maybe one or two homes or some very valuable acreage.. And those are what we focused on. And now that bid for assets is handling most of these sales and they are not live like they used to be.. I lost interest in these as well as when you get things being big on over the internet there is always someone who does not know what they are doing and thinks they are getting great deal and the prices get bid up to far and above true values.

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  • Jason Farmer
    Corona, CA · Member since 2014 · 154 posts · 100 votes
    12y

    @Jay Hinrichs

    Absolutely, they are not the best properties, we buy in LA County and Riverside County, even with properties unlivable and falling apart your always going to turn big profits in most counties in Southern Ca...

    I can see how you would lose intrest they only come around once, maybe twice a year in most counties here...

    Throw some of that trhow away money over here ill take it...LOL

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Jason Farmer

    never bid in Socal just Norcal.. I know San berdo and Riverside have millions of platted lots that were never developed all sitting out there in the high desert.. When I spend time in La quinta I fly my plane from PDX to thermal and cross over the pass south of Bakersfield so just north of the LA mountain range you can see the checkerboard dirt roads leading to no where with the occasional home or mobile home stuck on them.. the original land play back in the 20's when developers just bought up big chunks of ground and platted them.. Some of these areas have developed out.. But it will be a thousand years before these platted lots ever get to say 50% developed. and so the lots will get bought at tax sale and lost at tax sale over and over for the next millennium... If your routinely getting properties with structures on them at tax sale in La County that's Great.. in Norcal its very rare to find a tax sale property with a structure.

    The other thing I experienced with my limited try at tax certs. was the local guys that new what they were doing.. they would bid down the interest rate and I suspect those were the best properties and the crier was very partial to these guys .. I am sure its different in each venue.. My main point is I don't believe its right to represent tax cert investing like its a bank CD you put your money out and your guanranteed 18%.. can it happen absolutely but like everything there is some work and luck involved and the harder you work the luckier you get

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  • Jean Norton
    OP
    Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes
    12y

    Every state is different. Yes, you CAN lose money, which is why it's so important to have a chance to do research on the property. I haven't found Florida to be one of those states where you actually end up with the property by default. I may look into Indiana. Thanks guys!

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    True, in Fl. A certificate has no advantage as far as gaining title to the property. If not redeemed, after 2 years, the cert holder applies to send the property to Tax Deed auction, after paying all the other outstanding certificates. Then it is open to public bid. The problem can be that if you buy a certificate for one year for say 1,000 then want to send it to auction, you may need to pay $3-4k to redeem other certs, and possibly sending you above the value for the property. Research is key, as always.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Wayne Brooks

    that was my understanding just because you bought one half year of a cert you still needed to buy the remaining certs to try to get title through quiet title action.. Ergo I just did not follow up on the ones I bought and they never redeemed... So just another long line of 10K experiments I have done over the years... Its a full blown bizz in my mind at least from what I experienced.

    Also the big players were bidding the interest rates down to 5 and 6% one guy bid every single cert down for 2 hours I finally left.

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  • Patrick L.
    Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    12y

    You need to be very careful if you aren't doing on the ground research. While most liens get redeemed and nearly all that go to auction go to a 3rd party bidder I always see some real dogs go back to the certificate holder. These are always the 18% ones. You could end up with a piece of dirt with a $20k city demolition lien, $200k in code enforcement liens, and $8k in lot clearing liens (which all survive the tax deed auction). It may have had a house when you bought the certificate, it may still show an occupied house on street view. I see a couple of those in every auction, I have no clue what the certificate holder can do with it other than to see if the city will take it off their hands for free otherwise it's a giant liability.

    The prime properties usually get bid down to 0.25% (which actually pays a minimum of 5%).

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  • Jean Norton
    OP
    Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes
    12y

    Actually some will bid down to .5 - with confidence they will get the minimum 5% penalty. Most are redeemed shortly after the sale, so for them they can do a full blown risk analysis and probably enjoy an annualized high return. It's tricky, but can be fun.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Patrick L.

    very good points Patrick I remember reading an article in Forbes about a firm maybe 10 or 15 years ago that was buying down the returns and buying in huge numbers...

    Of course there is a lot more to this than meets the eye... I went to my first Tax cert course back in the early 90's nothing has changed.

    And of course Arizona is very active in this venue as well from what I understand.

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  • Jason Farmer
    Corona, CA · Member since 2014 · 154 posts · 100 votes
    12y

    @Patrick L. and @Jay Hinrichs

    Great points, it just has to be your thing, and tax sales are my thing i do them in several counties throughout 2 states...I love every aspect from the auction, to seeing the deed, from the rehab to the resell. My system is solid and i spent time and money developing it. Most of the time im buying before the tax sale actually happens but thats a whole different thing in its self....

    but @Jay Hinrichs after reading the original post i see where your coming from it does feel a little like that late night informercial vibe....

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    12y

    @Jason Farmer

    I fund a few guys that buy pre tax sale.. We did good on one of the bigger mid west towns this year.. I like the pre tax sale strategy lot of foot work but very rewarding probably the biggest % profit deals we will do in the course of the year... Inventory is limited otherwise that is all I would do :) Well not me but the guys I loan money to :). I like the my money and your hard work equation.

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