Tax Lien Sale time in FL

[Marquita Smith]

I am studying the tax lien certificate sales in Tampa Bay, FL. It is a long term investment strategy which I am interested in. Mainly because there is a minimal amount to invest with at this time but I the little I do have is only earning $.05 per month in a traditional savings account (it really hurts). So researching and talking to investors of tax lien certificates, it is low risk and more often than not, rewarding.

There have been several conversations about it here but I do know some of what I've read is incorrect. In this county in FL, once the redemption period has expired on a cert, you will receive a letter from the county to advise that you may apply for the deed. If you are the cert owner and you apply for the deed, paying all fees, back taxes for processing the foreclosure, the property belongs to you. So the investment comes down to paying to process the deed application if the cert is not redeemed. FL also has deed auctions.

Anyone in FL have more insight or advice? Online cert auction is in 6 weeks and I have an option to purchase certs from another party who has done all of the leg work. Want to get my feet wet and doing all I can to have a positive experience. Open to any suggestions and feedback.

[Eric Odum]

Pretty sure that the mature certs have to go to public auction at a tax deed sale, which goes to the highest bidder after the cert holder has been paid their investment + return. I have bought numerous Tax deeds in Hillsborough County...actually living in one right now, believe it or not. There are typically other liens on the properties besides the tax liens and those creditors deserve a chance for some sort of remuneration, if not made whole entirely...which is what the auction process allows.

I don't think I would classify it as low risk. In every auction, I see a handful of cert holders left holding the bag on practically worthless parcels. The certs are not redeemed and no one bothers to bid on the property at the tax deed sale. At that point, the cert holder gets title, but many of these left over parcels are slivers and portions of land that you can not monetize.

It is a highly competitive business. Wells Fargo, Deutsche Bank, etc and multiple private equity firms bid on the certs in Hills County.

The bottom line is, do your homework. Check out to make sure the property has some value before bidding on the cert. Mostly, I would stick with residential...although under the right circumstances, I might consider an office or retail property (industrial areas and industrial properties carry a lot of environmental risk and probably best avoided) That is my 2 cents. Hope it is some value to you.