All Forum Posts by: James Mikel

Yea, if the previous cabinet paint job didn't include priming then ugh, it will not hold up.  I would just as others suggested, touch it up and forget it.  As far as cost of spraying a couple of upper and lower cabinets, less than $200 and a couple of hours of work.  But I failed to mention previously that the job was done with two guys who had done it a lot of times and a $1,500 paint sprayer.   If you lack any of those things touch it up. 

As far as letting renters paint something on the interior, I figure if it makes them happy let them do it.  I pick/buy the paint they supply the labor.  I always assume the place will have to be painted when they move out anyways.  Yes many will claim they are Picasso but in reality are closer to a three year old.  If the renter does a crappy job on the paint, it doesn't really matter as painting is something that 90% of the time needs done when they move anyways.  If I had high end rentals I might feel differently or if I were trying to keep multiple units uniformed in color it would matter.  I also might care if I rented to three years old.  For the most part, I rent to older couples, they want something to do, take their time and typically do a pretty decent job.   As they have to live with it.   

I always look for the light color mis-tints at Home Depot, it saves about 30% of the cost.  As suggested, washable semi gloss is a good option. 

I have been doing rentals for over 25 years. 

FYI-The transitional wood strip really does the trick compared to other options. 

A couple of things.  It doesn't really matter how irrational it is or who is responsible a lot of times.  It really comes down to 2 things.

1.  Is the tenant worth the effort.  If he moves will you be able to up the rent considerably.  If so, you may consider no as your best response.   

2.  Is the expense reasonable. If he were to move you would need to do these repairs anyways to get the property rent ready.  So, the only difference is that you would be losing rental income if he left.

Some cheap tips:

1.  If the transitional area from carpet to hard flooring is wearing and that area of wear is less than say 5" replace your transition strip.  Most of the time the transition strip is a thin metal it looks pretty snappy when replaced with a piece of sold hardwood and it is easy and cheap.   

2.  Instead of painting the room or whatever the case may be, tell the renter that you will make the other repairs and buy the paint if he agrees to do the painting.  Many times, they change their mind about the immediacy of the need to repaint.  Just preface it with. let me know when your ready to paint and I'll go pick it up.  I'll have all the other repairs made by the end of the month.   

3.  Cabinets, a real time suck painting cabinets.  But, if you use a quality primer it should last you another 2-3 years.  If you have few cabinets we have found it easier to remove them, spray them with 2 coats of primer and two coats of paint.   Cost is minimal. 

There is no negotiation, I have tried in multiple counties, more than once.  Once the opening bid for the tax deed is set in stone, it will remain at that price for three years while on the LOL.  The structure surrounding the derived opening bid is set by statute.  The county really can't change that as it would not be in compliance with FL law.  But, once the property escheated to the county the issue is no longer under the thumb of statute and the county will do with it what they will. 

Many times if you are seeing property in the LOL that has been listed there over three years, it is out of convenience of the county not by requirement of statute.  If you find something interesting there that is over the 3yrs call the Tax Deeds or Clerk of Circuit Courts and inquire.  These properties will be negotiable but will take a while to convey as: (1) the escheatment will have to be approved by the County division handling it; and, (2) the BOCC will need to approve the sale to you; and, (3) the property is then offered to municipalities within the county; and, (4) a county deed will be drafted by the County attorney. 

The Clerk's of Tax Deed's office, after inquiry, will send you a format or processed form to fill out that will include your offer amount for the property.  They will submit it to the proper division.  The actual deed has to be drafted prior to BOCC approval.  Basically they vote on it if they accept the deed gets signed. 

I have bought properties by BOCC approval after escheatment and tax deeds from the LOL but not once have I been able to get the county to reduce the amount owed while the property was on the LOL list.   

Tax title service a while back had an office in Boca Raton Fl.  It was around that time that they came onto my radar.  I called and talked to my attorney buddies about it, they both said invalid in the eyes of underwriters.  So I spoke at a now retired circuit court judge, same response.  I about 5 years ago looked further into it.  What their title service in a nutshell does is allows a limited title insurance policy to be written through their preferred partnering title company.  

The rundown is that the owner of tax title service, David, used to be an underwriter for  a national title company.  He has a contract with them which allows issuance of title insurance.  But, there is a time frame in which it has to be underwritten and issued.  If the property is certified and closing occurs at the partnering title company within the window it is issued.  If the deal falls through and the window closes you will need recertification.  As of my last checking the cost was $1,200.  Also, you may find a quiet title is still necessary.  If your end buyer decided to sell the property, he will not be able to get title insurance.  Other insurance agents and title attorneys will not accept tax deed certification as an acceptable means of curing the title of adverse parties.

The how--The owner of tax title, David Schumacher, records an affidavit stating that he has reviewed the case and it is found that all parties to the tax deed sale were properly served and notified.  He then records a statement of issuance of title insurance.  I was considering going down that road myself at one point but realized There were hundreds of tax deeds sold in my area of the state that year and tax title had certified less than 10 that year.  In my opinion, if the dude had the golden ticket, all the misers would have been lined up-me included.  

Maybe something has changed since my last checking, but they did close the office in Boca.  

I like the non transient rental opportunities in Marion County and surrounding.  Unlike Orlando, Tampa, Miami, Palm Beach where the turn over of renters is relatively high, along with the price of the properties itself, I prefer a more steady stream.  My stream is filled with 60+ year old couples in tidy small houses near retirement areas such as The Villages.  The rentals are in the 14-16% annual roi range with property management.  The cost of the houses are in the $40-$60,000 range.  These areas however do have their faults.  If your seeking short term rentals, forget it, stick with the hyper drive cities.  If you are looking for big appreciation there are coastal areas where that is possible, such as Naples, Marco Island, St Pete.  Me, I prefer my 2% appreciation and the reduced amount I have in rental vacancies and bad renters.      

Tax Deeds and Homestead Exemption:

When a property owner has homestead exemption in the year in which taxes were unpaid, the tax lien investor is unaffected.  If that lien is unredeemed the resulting tax deed sale will include a 50% of assessed value markup.  This markup is made at the point of sale and will be added to the advertised opening bid posted.  This is a Florida statutory requirement so it is the same in all counties.  In these scenarios the opening bid will reflect the markup and the actual amount owed to the lien investor "tax certificate holder". 

The oddity occurs when the property receives no bid or the lien investor fails to render payment to transfer the tax deed to himself or the tax lien was held by the county.  The property tax deed will then reside on the List of Lands.  During that time, even when homestead exemption is dropped by the property owner, the 50% still resides.  I have found otherwise good and valuable properties on the list that were previously homesteaded.  Some were demolished homes, some were properties bulldozed after a catastrophic event and others where a mobile home was removed.    These properties are ripe for purchase as the actual taxes and accrued interest were in the few hundred dollar range and the properties had utility improvements .  But, the dreaded  50% kills the ability for profit.  Most recently someone called me in regards to a property he found on the LOL, great lot with septic tank and well on property, nice driveway and electric already there.  Problem was the dreaded 50%, while the lot was worth $20,000 with the improvements, the required amount to obtain the tax deed was $45,000.  A relatively new mobile home had been pulled from the property.   My advice was to wait the three years until the property escheated to the county then contact the Board of County Commissioners to locate the division which handles surplus county owned property. 

For the sake of time,  I was omitting a lot of the details from point of tax certificate and point of ownership for FL tax liens.

More detail:

In short you will obtain your certificate and hold that certificate for 22 months from the date of origination.  If you have obtained the certificate from the county struck off list then you will need to hold for the duration of time until matured.  (Yes it is possible to apply for the tax deed immediately after obtaining a tax certificate that has been struck off to the county.)  Once the 22 months have lapsed you will then apply to the county for a tax deed.  Once your application has been received by the Tax Collector their office will: determine the amount of all other outstanding certificates and accrued interest on those certificates through the end of the month, determine the statutory cost of auction (about $75 currently),  and determine the other small costs associated with the account.  They will then notify you, you will make payment, then the process begins.

The Tax Collector will then:

Pay those other outstanding certificate holders their face value and accrued interest; and, order from the approved title company an Owners and Encumbrance Report; and, surrender to the Registry of the Clerk of Circuit Courts or Comptroller those statutory costs associated with the auction; and, order from the approved vendor an advertisement to run for four consecutive weeks in a newspaper of general circulation in the county; and, remit for recording to the County Clerk's office the statement of service and party accuracy, once the title report has been examined; and, send out letters of public notification to all parties named on the O&E report; and, examine documentation found in the Property Appraisers records to verify legal descriptions, plat maps, etc etc. 

Then if unredeemed, the file is sent to the Clerk of Circuit Courts for review.  If all is meeting statutory requirements then the file is stored or transferred to the Tax Deeds Office or transferred to the Comptrollers Office. (It depends on the county who handles it i.e. Palm Beach County  it's the Comptroller, Marion County it's the Tax Deeds Office, Citrus County it is the Clerk's Office). 

Then if redeemed, you will receive all of the funds invested in the venture and your accrued interest.

If the property moves from this point to the point of auction then the appropriate office will put on their schedule the tax deed sale.  The opening bid for non homestead properties will be those costs you have rendered unto the Tax Collector and the interest accrued, if you do not receive the tax deed you then will be reimbursed.  For homestead exempt properties the winning bidder or tax deed applicant will be required to render 50% of the appraised value of the  property.  This amount is added to the tax deed sale opening bid.  

If there are no bidders at the tax deed sale the party applicant shall pay the required document stamps and if homestead exempt the additional amount added to have the tax deed issued to them; or, if the applicant fails to render payment for any reason the tax deed after 90 days may be entered into the "List of Lands Available for Taxes".  All properties residing on the LOL by statute will remain there for 3 years unless purchased.  Once a tax deed has remained for three years on the LOL the Board of County Commissioners will approve the escheatment of the property to the county.

As an applicant for tax deed you also, just as any other citizen, can bid at the tax deed sale.  

So, you now either have your investment and interest or you have your tax deed.  And this is the short version. 

Hey Leigh, definitely worth more but an easy out with a nice return is a welcome friend.  I am however quite happy with my 18% redemption amount though.  Since your in Marathon, there is an unbuildable subdivision with about 400 lots all owned by the Association, Grassy Key Beach Subdivision.  There are a considerable number of outstanding certificates there.  Unfortunately, all of those certificates held against lands having ocean frontage have been sold off from the county owned certificates list, for last year.  If the subdivision isn't on your radar for this year it should be.  Some of the parcels have excellent ocean frontage.  What would you pay to own a private beach in Marathon?  More than the few hudred dollars for the lien I bet.  

While there is little chance the owners  won't reddem, I again will be quite happy with my gain of interest.  If not redeemed, I will send you a personal invite for drinks on my beach. 

Ok, I have read quite a few posts here and there seems to be a little confusion.  I'm only chiming in because I am an expert at buying FL tax liens and have bought tax deeds and conducted quiet title actions without the assistance of an attorney.

1.  The rules pertaining to tax liens are mandated by statute so what is allowable or required in one county is mirrored in all 67 counties in Florida.

2.  You must hold your tax lien for 22 months from the date of origination before you can apply for a tax deed.

3.  When a tax lien is transferred the counties call it an "endorsement" of the lien.  Currently the fee to endorse your lien to a third party is $10. 

4.  Typically when liens are sold on the secondary market for face value plus the interest accrued the sellers gain is in the fee they charge to "transfer" it to you. 

5.  I have bought plenty of tax certificates that were struck off to the county and received my 18%.  You have to be able to find the value of the property through the eyes of others looking beyond the present value. 

As example:

Key Colony Beach Subdivision in Marathon, The Floirda Keys. I recently bought a certificate for an unbuildable sliver of land in that subdivision. Why? As a property owner in that subdivision you are guaranteed inclusion in the Property Owners Association. That means use of the dockage, marina, private beach, pool, fitness rooms, etc etc. It is a cheap way to gain access. Unfortunately the Association redeemed the certificate before I could apply for the tax deed. I invested a total of $120 in the lien. Someone living in the area would be more than happy to give me $5,000 dollars for that type of inclusion. Also, as a POA member you get discount rates for the Key Colony Beach Golf Course. I have bought liens against island properties, RV lots in the Ocala Forest, etc etc. which were struck off to the county.

6.  You will lose your money investing in tax certificates if you do not locate superior liens having a  higher priority(learn to conduct a quick title search). 

7.  You will lose money investing in tax certificates if you are unaware of prohibitive species designated areas.  There are a lot of certificates issued in Charlotte County near North Port due to scrubjay designated areas.  It requires special permiting to build, in some areas you can't get a permit.  Use the Appraisers GIS maps or BOCC maps to find environmentally sensitive or species designated areas.  In Charlotte County it is an overlay on the GIS.  It is easy to find the township, section, range of these areas and delete the whole lot from your perspective certificate list.   

Hey Steven.  Aside from the due diligence there is no big gotcha to eliminate, at least not in Florida tax lien investing. 

I have published pages on Florida tax lien investing you can google my name for more info.