Tax deeds and surplus

[Carolyn Morales]

I have done well the last 3 years with buying over the counter tax deeds. I made 55k my 1st tax deed bought over the counter from the tax deed office without bidding. A vacant lot, and have since bought 13 more in and around tax deed inventory whether it is from an out of state holder of inventory or otc at tax deed office. I just let 2.1 acres go back to auction because I could not get the right of way I needed to make it buildable on this not yet approved private road. It required a waiver of frontage because the road in front of it was not approved.. I paid $4500. On a 46k assessed value. I thought I could learn the application process and there was enough room in equity I could let it go back to auction if I had to. Well it got bid up to 24k and 19k in Surplus is coming back to my business. That was not my original intent but I will take it. Now I know why some people make a career out of pre auction intercepts to NOT pay the tax to set them selves up for surplus . All of my tax deeds have been just vacant land or MH lots 

[Robert Dobbs]

Good morning Carolyn, Good job! I myself ...have been a fan and a buyer/flipper of Florida Tax Deeds for many years now (in Citrus County, Florida). Personally, I'm not a fan of County available "list-of-lands" (as you called it, "over the counter", non-bidding parcels). But as you say, if you can acquire tax deed parcels well below certified County assessed values, ...you should be ok! I bought (I.e., at tax deed auctions) mostly plated small, low-priced tax deed parels (1/4 acre to 1.5 acres). To date (since 2014), I've spent a total of $145,177.75 on tax deed vacant parcels. I've bid on a total of 118 parcels and won 56 of those tax deed parcels! My "average purchase price" was $2,592, per tax deed parcel: includes recording/transfer fees, doc stamps, etc. All but 11 have been sold. And I'm confident, these 11 remaining parcels will be sold this year! I "bid and buy" online via: http://www.realauction.com/client-sites, you can bid at both tax deed and foreclosure auctions at a number of Florida Counties. Also, you also have access to "online auctions" in other states, such as as Arizona, Ohio and Texas. "Newbees" need to learn the "ins-and-outs" and the "rules of the roads" to these various auctions. Each state, for example have their own "governing rules" on tax deeds. My suggestion to potential tax deed investors, get educated and "learn the ropes" to tax deed investing, ...before you invest.

Good luck to you (and keep-up the good work Carolyn!)

Bob Dobbs (Trustee of the Land Rescue League Trust, investor and "well-seasoned", licensed Florida real estate professional.)

[Carolyn Morales]

@Robert Dobbs I have a history with land beyond the tax deed subject so I do know what to look for. I am in the largest County so there were over 700 otc deeds available. And that list remains. I have all the links down pat for important research in the County I work in which is likely easy to guess. Other than that we buy bank owned or short sale primary residences and we live in rehab them to later rent. The latest is a 5 acre farm. We may 121 tax free exchange this at the 2nd year mark for a better farm primary residence, we have not decided yet. 

Have you let any go back to Auction? I also buy mature 2 year certs and apply for tax deed and win on no bid sometimes or earn 18% I also attend live County Tax deed sales local to me and apply for tax deed sale as a cert holder there as well.

[Robert Dobbs]

Hi Carolyn, part of my "early days" of tax deed investing, ...I also bought "year two tax certificates". I then applied, like you do, ...for tax deed auctions, my right as a  "year two mature cert holder". In Citrus County, the "average wait-time" for the tax deed auctions to be scheduled is approx. 1 year wait-time!  Like you said, "picking-up" 18% interest, while I waited was OK with me. Results varied. If, in my opinion, ife the bidding went to high, I would let it go and was reimbursed and collected up to 18% interest. In years 2014, 2015 & 2016, many times, I was simply  awarded the "tax deed parcel", because there were zero bids (plus I still earned interest!). Lastly, I would "bid-up" certain tax deed parcels that I really wanted. But I always had a "walk-away" price, where I would stop bidding, and let someone else win the parcel, and like I first said, be reimbursed for my cost of the "tax certificate", plus some nice interest. The biggest mistake that I see is other bidders "over-paying" for many lots, as these bidders get "caught-up" in the bidding action and wind-up paying more than they should for their "won tax deed parcels". All-in-all Carolyn, my experience has produced some good results. Besides picking-up some great deals, my best year of interest from Citrus County, florida was a "1099" for almost $7,000 in "tax certificate interest"! It was a "ton of work", but I enjoyed doing it and making $$$$$ too!

Bob Dobbs, Trustee of the Land Rescue League 

[Vladut Bujoreanu]

@Carolyn Morales - Are there any resources you used to help learn how to do this? 

[Carolyn Morales]

Originally posted by @Vladut Bujoreanu:

@Carolyn Morales - Are there any resources you used to help learn how to do this? 

I am not sure BP will allow this info to stay here. But it was a 30 min Audio book that was really cheap written by a lady that had worked most of her career in the Flagler County Tax Deed Office.  She put Florida Statute 197 on Tax Deed sales in an easy to understand audible format. I love that it is just the facts and there are no elusive upsells.

The book is called LOW RISK INVESTING WITH FLORIDA TAX CERTIFICATES. It touches on all aspects of the process. I learned this process on purpose when we had to give my 18 yr old little brother 26k out of a family probate rehab we did. I wanted to inspire him to invest it wisely. I listened many times to this audible and learned the term, "Lands Available List", where you can buy and own NO BID properties OTC 90 days after the sale date. I found my brother a 1st great tax deed OTC and he refused to buy it So I bought it for $7600.00, a vacant lot, with no Idea  I would sell it 8 months later for 65k after also doing a quiet title suit for $2300.00. I have been a freak ever since and have bought about 13 more all profitable.

[Vladut Bujoreanu]

@Carolyn Morales - Just bought it, thank you! 

I am glad that you've been so successful with this!

[Carolyn Morales]

@Vladut Bujoreanu

if you mean how to pick land, my first land investment was in 1989. It just takes time learning what works. As far as that lot I let go back to auction. I have since learned the city planner was wrong and I didnt need a waiver after all. I will contact the new owner and let him know as the deed from 1977 has the easement. I have bought land locked parcels sold to neighbors also and made decent money. It's a research play you just really have to pay attention and dig all potentials.

[Vladut Bujoreanu]

@Carolyn Morales sorry I should have specified, I was referring to OTC non-bid parcels.