First Deal - Tax Deed Auction

[Ashton Baker]

Investment Info:

Other other investment.

Purchase price: $21,100
Cash invested: $3,500

Purchased a vacant piece of land, 2.4 acres, in Milton, FL, through a tax deed auction in August 2019. This was my first deal and with a few hiccups will still come out on top!

What made you interested in investing in this type of deal?

I learned about Tax Deed Auctions a few months ago and decided that would be my main source of purchasing (before I realized the tons of other outlets). Became slightly impatient just wanting to get my first deal DONE - I started bidding on properties in April and did not win one until August.

How did you find this deal and how did you negotiate it?

Florida has Tax Deed Auctions all the time depending on the county. No negotiation, just a bidding war.

How did you finance this deal?

Cash only.

How did you add value to the deal?

I went into the auction with plans of purchasing the vacant land (one parcel) and splitting the piece into two to sell separately.

What was the outcome?

I am currently going through a quiet title action to get a clear title on the property, once completed, should be in March 2020, I will sell.

Lessons learned? Challenges?

A title search was provided, however, a deed in the early 90s was not done correctly so there is an adjacent parcel that has a mortgage on their parcel, as well as my new parcel. This resulted in a loss of $900 and an additional three months to complete the quiet title action. It could not have been prevented, so just a learning curve of potential risks.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm fortunate that my mom is a real estate agent and my dad is a custom home builder. They have both been working together for 30 years now in the county I am investing, so they were my backbone, brain, and market gurus for much of the learning process.