newbie question about purchasing a tax deed property in florida

newbie question about purchasing a tax deed property in florida

Orlando, FL · Member since 2013 · 4 posts · 0 votes

i live in Florida and i would like to try to start acquiring and flipping land here in florida. ive never bought a property before, heck i dont even own my house i rent. but i love making profit flipping cars and motorcycles so i would like to try to flip a peice of property. i found an empty lot online someone is selling so i researched it first on the local property appraisers site. i found that the person currently selling this empty lot owns it as a tax deed and has owned it for 1 year. i see the person paid 3300.00 in back taxes for it they want 3500.00 which i like because im a poor boy so its something i can afford. its assessed value is 11,000 but im afraid that they are wanting to sell it because of previous leins that are pushing on them. i read somewhere that with a tax deed you cannot do a title search. if i buy this property am i essentially walking into it blind, based soley on what the current owner chooses to or chooses not to tell me. can i do anything with this property before the 4 year mark is up. i heard you can do a quite title but not sure if its worth the time or money. i would appreciate any info or advice for a newbie trying to make a profit. thanks.

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Virtual Assistant · Orlando, FL · Member since 2011 · 10 posts · 1 vote
13y

Hey James:

http://www.floridataxsale-foreclosure-info.com/

This site will answer pretty much any question regarding tax deed sales, and it is Florida specific.

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  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    13y

    For the 4 year mark you'll only be able to buy or sell it on a quit claim deed without doing a quiet title action (which will cost you around $2,000). It may not be worth very much and if there are any government liens on there they will survive the tax deed sale and cannot be removed without paying them. For example if nobody has been mowing the lot and the city has been doing that there will be a lien for each time they cut the grass with interest (here in St Petersburg they charge $184 each time they cut your grass) If there was a structure that the city demolished then there will be a lien for that.

  • Orlando, FL · Member since 2013 · 4 posts · 0 votes
    13y

    thanks for the response Patrick, so how do i find out if there are government liens or city liens before purchase?

  • Virtual Assistant · Orlando, FL · Member since 2011 · 10 posts · 1 vote
    13y

    Hey James:

    http://www.floridataxsale-foreclosure-info.com/

    This site will answer pretty much any question regarding tax deed sales, and it is Florida specific.

  • Orlando, FL · Member since 2013 · 4 posts · 0 votes
    13y

    awesome, thanks Carlos.

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    13y

    James T. you need to find out for sure if they have just applied for a tax deed or have actually gone through the sale. In FL foreclosing a certificate does not grant title to the property until after a tax sale. If the property does not sell you now own it so just make sure you know what it is you are buying for sure.

    http://www.occompt.com/index.php?option=com_content&view=article&id=65

    I'd also go here for the info you want, the other site looks like they may be trying to sell you something. This is the actual gov site for orange county.

  • Orlando, FL · Member since 2013 · 4 posts · 0 votes
    13y

    thanks for the advice Matt Devincenzo, when i looked at the tax collectors site it showed a pdf file of the purchase of the tax deed. it showed a certified paper from the county to the current owner from the auction where they payed the back taxes for it. and in the sales info for that parcel number it says tax deed in the title box. am i assuming correct that it is a tax deed by that information. wouldnt it show as a tax lien certificate if otherwise?

  • Landlord and Appraiser · Bartow, FL · Member since 2011 · 47 posts · 28 votes
    13y

    The liens are easy to find, if they're in the previous owner's name. In Polk County on the PA site, the deed book and page is a clickable link. Once at the Clark's site I click on 'new search' and type in the previous owner's name. Then I sort by date. You have to poke around and read the documents one by one to learn the codes and do your own chain of title. Many times, the city or county will accept pennies on the dollar for code enforcement liens because you're trying to clean up the property.

    The issue is the heirs of the previous owner. Any one of them could come along and claim that you should either pay them or get a judge to deed it back to them. Especially dangerous in a rising market!! The other unknown is that there could be liens on all of the previous owner's past and present property but not recorded in that county. I looked at an $11,000 house and paid for title search. There was a $576,000 judgment against the llc but it was recorded only in Duvall County. WHEW! Do you think I would get a quitclaim deed from somebody that angry??

    The four year mark is to clear the title and you can get a title policy after that. But you want to flip it TODAY. You must use an attorney to quiet the title and fees start at $1,000. Thinking outside the box, you could do the deal and then offer owner financing with your price as the down payment and ask for a four year balloon with monthly loan payments due, and buyer must pay annual taxes.

    You sad that the tax deed owner got the property by paying the back taxes. That isn't how it works. He bought it at an auction and was the high bidder. Do the math: if back taxes were $20,000 on a house worth $100,000, you couldn't snag the house for $20,000. There are monthly auctions and there are people that make a living by sniffing out the deals.

    Here is a great resource for your education: http://taxdeedsqueen.com/

    And don't miss her calendar, top right click on events, then first link on the page.

    There are some screaming deals but there are hidden liens and heirs. Some law firms and investors specialize in these and claim that they can quiet title in 45 to 90 days. But only after you close on the deal and fork over your cash and no guarantee. The risk was just too great for me at that time.

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