Anyone have some time to help me with Tax Liens?

[Bernard DePascale]

I haven’t invested yet on Tax Liens and would love some questions answered that have been hard to research. If anyone has some time to help I would really appreciate it. My questions would probably be random, but it would help fill the gaps that are making me hesitant to take the plunge.

Thanks for any help!

[Wayne Brooks]

@Bernard DePascale

If you’re talking about FL, there are two different types....

1) a Tax Certificate where are essentially just loaning money to the county, they happen around the first week of June each year.  You bid the interest rate down to receive one and you have No ownership rights whatsoever. Most certificates go for less than a 1% rate, but you get a minimum of 5% total over the life of the Certificate, no matter when (if) redeemed. It can cost thousands to force a public sale, in order to get repaid if the certificates don’t get paid off, when you want your money back....and you’ll have no advantage over anyone else in buying the properties.

2) Tax Deed auction, which occurs when someone with a Tax Certificate sends it to a sale.  You get actual title to the property, but not “insurance title” for four years unless you do a quiet title auction (approx $1500-$2000 and 3-4 months).  In most places the auctions are very competitive, expect to pay 80-95% of current value.