All Forum Posts by: Brandy Horkey

@Ryan Lee let’s say you have 1 tax cert but there are 3 others outstanding and yours has come up on the 2 year point and you decide to send it to the county to auction off. In order for the county to proceed, they will require that you submit the total of all outstanding amounts before the auction process can move forward. So if the taxes on a property each year is $500, then you would have to also submit $1,500 for the additional certs in addition to the county fees for the auction.  The idea is that the county wants all back taxes paid in order to release the deed. So all of that money becomes the opening bid. If someone else wins the bid, you get your money back plus any interest due. 

@Amy Herzing Agreed. Child support includes anything considered to be a need for the child. Housing, clothing, food, running water, etc. There is a lot of misconception over it. Even so, I wouldn’t count CS as a firm source.

I am still in the research phase of my first purchase and this is also a question I had too. You mentioned that the applicant is “close”. Depending on how close they are to the minimum, you’ll have to make that a personal choice I think. I wouldn’t count CS as a definitive income. I have 2 exes and went through about a 2 year period where neither paid and managed to go under the radar. State collection services are much better than they were 15 years ago but there are still ways to work under the table to avoid paying support.

Originally posted by @Ryan Lee:

 thanks for the info, So after 2 years I can start foreclosure or I have to wait an additional 5 years for a total of 7? or I have until 7 years to foreclose, so i can collect the interest for 7 years. So even if i have the lien and i start to foreclose I have to bid on the deed? The last line of your paragraph is a little confusing.

As Wayne noted, it is not technically a foreclosure but you are requesting that the county proceed with the auction process.  To answer your question, you can request this after the 2 year point.  Most of the counties will list the date on their website and you have up to 5 years after that point in which to request the auction. After that time(7 years after issuance), if you have not requested the auction, then the certificate becomes void.

You have to submit to the county all of the funds that are owed on the property such as other past due taxes, advertising fees, sheriff's notifications, etc.  So you could feasibly purchase a tax cert for $1,000 and still have to front another $5,000(as an example) for other taxes and fees.  This makes the opening bid $6,000.  From there, you would have to be the high bidder in order to gain the property.  

I think of tax certs more like a CD.  In FL, the minimum return is 5%.  You may have to wait 10 days, you may have to wait 10 months.  But after 2 years, you can decide if you want to pursue the auction.  Yes, interest accrues for as long as the cert is active and not redeemed

@Wayne Brooks Absolutely!  I removed that point from my post since the original question was about the certificates.  Such a fine line between the certs and deeds :)  Thanks for the Vote btw!

@Ryan Lee the Florida Statutes on tax certs is pretty straight forward.  You can buy certs at auction or OTC after the auctions.  The rules and dates are slightly different for each county but all must follow the state statutes.  In general, you can bid anywhere from 0%-18%.  0 gets you just that....0%.  However, you can bid down to a 1/4 of a percent and still win the auction which pays 5%.  I see a lot of folks do that just to win the bid.  I suppose if you have enough money to invest for 5% and make a sizable profit, then that's the way to go. Remember, Florida has lakes....lots and lots of lakes so always be sure to take a look at what you're bidding on and don't get stuck with a .5 acre of water.  Alligators really aren't all that profitable! :D Once you win a tax cert, it is held for 2 years. Owners can redeem the certificate at any time during that two years. As John mentioned earlier, you do not own any part of the property so you are prohibited from setting foot on the property or contacting the current owner.  Just sit on the cert for 2 years and collect interest if they are redeemed. After 2 years, you can foreclose on the properties for up to 5 more years(total of 7 years on the cert). The owner can redeem the tax certificate at any time until a deed is issued and paid for by a new owner.  You still do not own the property unless you win the bid at the tax deed auction.  

I am a project manager for a major telecom services company.  While I make a great salary, I am growing tired of the stress that comes along with the position.  About a year ago, I started learning about tax certificates and bought a few with some "play money".  I picked up a couple dozen, low cost certs with various criteria.  Many have already been redeemed(yay!) and I have several more pending.  Since they were such a low cost, if they never get redeemed, it's really no big loss.  But it served my purpose of learning about the process and making some money along the way.  I plan to continue bidding on certs but my criteria will be much more focused next year now that I know what will and will not work for me.

Fast forward to the present, I am now looking to get into some actual investing. My goal is to invest in enough rental properties through tax auctions that I can feasibly quit my job in 5-10 years, well before the standard retirement age.  I am open to going the conventional route with houses on the general market, but I've found a great market to buy in so I am going to pursue it for now. And no, I am not using the same philosophy I did with the tax certs(buy and learn).  I have spent months reading, researching and learning everything I can before I actually place that first bid.  

Putting up cell phone towers is a very rewarding thing to do and it makes me proud to know that what I do affects millions of people every day but the stress can be overwhelming and as I grow older, I see the value in passive income and what it can do for me and my family. The prospect of getting into the real estate investment world is scary to say the least, but I am looking forward to learning more and will always take any good advise that comes my way.