All Forum Posts by: Stefan K.

@David Krulac I love the geo home. Count me in!

All kidding aside, the communities we're looking at are kept up very well which helps move things faster. Like I said, I'm less worried about finding a buyer and more worried about what we might not be thinking of with these types of communities. The $1,000 owner transfer fee was a surprise, so what else might there be to worry about.

@Patrick L. - I had a guy who was ready to buy it and he had a title search run. It came back with some credit card and collection judgements against the former owner. Even though the tax sale wipes these out, he became non-responsive. I reached back out this morning and offered exactly what you said above, to put a successful quiet title resulting in the availability of title insurance as a contingency in the contract. We'll see if he responds.

A lot of other interested buyers just get very confused about the whole thing. So finding someone familiar with tax deeds who is looking for the type of property I have has been very challenging. Finding someone who isn't familiar but OK with the contingency might be just as hard. Like I said - learning a lot!

@Patrick L. I'm finding out that I probably need to do quiet title anyway. Having a hard time getting people past the lack of title insurance, even at a discount. I'll give it another week or so, but now I'm 45 days from the sale and with a clean quiet title, might have been almost wrapped up.

This is the first one that has come my way, so I'm learning a lot in the process, even if I don't make a lot on the sale.

@Wayne Brooks Wanted to give an update and thank you for the great advice.

The guy living there didn't do much in the way of fixing it up, but the owner wasn't keepin up his end of the deal. Either way, he found a new place and moved out last weekend. I helped him out with his deposit on his new place (much cheaper hiring a lawyer and filing a writ if he wouldn't move out). He asked me to call him the 4th of each month to see how much of it he can pay back that month. I told him not to worry about it but he insisted.

Now I just have to get it sold!

@Wayne Brooks thank you for responding. Limiting your end buyer market to the 55+ crowd seems to be the one common theme when I've tried to research this opportunity. I think with the deals we are looking at, we're leaving enough room to under price the other homes for sale in the area which will help to move it faster and cut down on the issues with limiting the buyer pool.

I'm hoping someone else has experience with this and can share some "war stories" or their successes. One community I looked at had a $1,000 transfer of ownership fee that gets paid to the HOA. With that one we'd have to price in the $1,000 we'd pay when we purchase the property in our numbers and the $1,000 our buyer would have to pay in the appeal of the property itself. I'm wondering what else is out there that we'd have to be on the look out for.

I've done some searching on BP for the good and bad of flipping in 55+ communities (when you are not 55+) and the information is somewhat limited to this point.

My business partner and I are considering a couple of flip opportunities in 55+ deed restricted communities. These are mobile homes where you own the land, have an HOA fee for the amenities, but do not pay lot rent and these are not co-ops (but I'd love to hear more on the good and bad of co-ops too).

If the numbers work, what are the things we need to watch out for?

Sorry about the double post. Gave me an error message the first time. Guess it posted anyway.

@Marissa Barrios I believe you are mixing different state statutes for tax liens. I caution you and recommend you study up on the states where you are puchasing tax liens.

With Florida tax lien certificates you cannot contact the delinquent taxpayer during the 2-year waiting period to apply for the tax deed if you own the tax lien certificate. See the Florida code:

197.432?Sale of tax certificates for unpaid taxes.—

(13)?The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until 2 years after April 1 of the year of issuance of the tax certificate.

(14)?Any holder of a tax certificate who, prior to the date 2 years after April 1 of the year of issuance of the tax certificate, initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at a tax certificate sale. Unfair or deceptive contact by the holder of a tax certificate to a property owner to obtain payment is an unfair and deceptive trade practice, as referenced in s. (1), regardless of whether the tax certificate is redeemed. Such unfair or deceptive contact is actionable under ss. -. If the property owner later redeems the certificate in reliance on the deceptive or unfair practice, the unfair or deceptive contact is actionable under applicable laws prohibiting fraud.

Double Post

@Marissa Barrios do you mean you don't have money available to apply for the tax deed (pay off the other outstanding tax certificates, any current taxes due and the fees to apply)? If that is the case, @Wayne Brooks is right. You can wait and hope that someone else applies for the tax deed and in doing so will pay off your certificate (original purchase price plus interest). Your certificate is good for 7 years, after which time you forfeit your investment.

If you mean the owner can't pay off the outstanding amounts due before the auction (after you apply for the tax deed), it will go to a tax deed foreclosure auction. If no one bids at the auction, the property is struck to you. Depending on when you apply for the tax deed and when the auction is held, you may owe one more year's taxes at that time, but you get the property. If someone else bids at the auction and purchases the property, your certificate is paid with the accrued interest.