Land Flip - Purchased Tax Deed on Thurs, have offers today. HELP!

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Land Flip - Purchased Tax Deed on Thurs, have offers today. HELP!

Brandy HorkeyPro Member

Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes

Hi! I am not sure if this is the correct forum to post this in, but I just purchased a vacant lot in Haines City, FL through the county tax auction. I'd like to flip it quickly but I am not 100% sure on my next steps. I talked to a real estate agent in the area and she offered to list it for a little less than what I would like to get out of it, citing similar sales in the area. I posted the lot on Facebook for a higher price (Still lower than what I think it can turn) and already had someone go by the property and come back telling me they are very interested. I received a couple other "interested" responses. So I have a few questions:

1. I know the Tax Assessor will take a few weeks to update the property to show me as the owner, can I still attempt to sell in this time frame?

2. Do I need to quiet the title before I make a firm deal?

3. Is there anyone out there that could reach out to me one on one for some sound advise?

Thanks in advance,

Brandy

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

one thing is for certain there are no shortages of good lots with clean title in FLA... I would only listen to Wayne in this thread he is an expert in that market the rest are just white noise and should be dimissed as advice or comments that are not worth anymore than the few seconds it takes to read this.. @Tom Gimer excluded he knows title LOl.. so either listen to Wayne or no one..

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
You own it now.....the tax deed was issued right when you paid for it. The delay in it showing up on the Property Appraiser site doesn’t matter. In order to transfer clear/incurable title, yes you’d have to do a QT.....usually 2-4 months or so, and $1500 or so. Usually if you can just offer a quit claim deed you’ll have to sell at a pretty good discount.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Wayne Brooks I just spoke with the lady that is wanting the property and she let me know how much money she is willing to spend and it is still within the price range I was hoping for. Her parents are relocated here from Puerto Rico after the hurricane and she wants to pick them up a place fast. I am going to go meet with her tomorrow at the property to discuss more.
Would it be possible to talk with you privately to get a little more info on the quit claim process? I am super excited but scared to death and do not want to make any mistakes.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
You really need to hire an attorney to handle this. As Wayne stated, legal will probably run $1500-$2000. I am fairly certain the only difference between selling with just a certificate of sale vs a quiet title action is the difference in the type of deed your buyer would receive.
Thoughts @Wayne Brooks??
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
@Brandy Horkey Your buyer is going to put her parents on a vacant lot?
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Tom Gimer They plan to put a mobile home on the lot.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
@Brandy Horkey Well, this is a bit of a buyer beware situation. If you don't get the QT done first, you'll have to transfer by quit claim deed. The buyers won't be able to get title insurance or a loan on the property for 4 years (the time when any claims could be filed without the QT)....Assuming no one comes back and contests the sale within that time, which would be rare though.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Wayne Brooks That makes sense. Just one thing I want to be sure I am clear on. When you say they could not get a loan on the property, do you mean that they could not take out a loan using the property as collateral or that they could not get a loan for the mobile home they would want to place on the property? Thanks so much for your comments, I really do appreciate it!
Also, I did a little research of my own and found that there was a demolition of the mobile home that was on the property in October, therefore a demo lien. I've checked the statutes and it seems that the rule is that the excess on the auction would go to the county to satisfy the demo. I will be calling the county on Monday to confirm.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
@Brandy Horkey They couldn't get a loan on the Property. The surplus funds may, or may not, go to the demo lien. In order for it to do so, the agency with the lien would have to apply for it, and it will be at least 90 days before those funds would be distributed to anyone. This property isn't a good candidate for a quick flip, without paying off the demo lien.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Account Closed This will be a very low cost transaction and I am the seller. As for comps, the price offered is over all other comps that I was given by the real estate agent as well as what I was able to find and even over what the agent offered to list it for initially without much conversation. My concern is that I do not want to conduct a shady transaction where someone could come back to me later on and screw me in the end. I want to be honest with the buyer so that we both walk away confident that we made a good deal.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Wayne Brooks Ok, you gave me enough to chew on for one night :) I will definitely be making some more phone calls on Monday and seeking out some legal advise. This would be a cash transaction but I don't want to get stuck later on.
Thanks again!
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
8y
@Brandy Horkey which lot was it?
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Wayne Brooks Parcel ID?
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Rob Drum
Real Estate Broker · Bradenton, FL · Member since 2017 · 544 posts · 363 votes
8y
I've been wondering this same thing. Ive seen a lot of people trying to flip Alabama tax deeds this way. I know we have a lot of redemption rules, so I've been curious what are the risks to each party after the sale?
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Rob Drum every state is different. For this situation, it will come down to a matter of surviving liens. In Florida, the tax deed is superior to most other liens, but not all. But I hold ownership of the property. In other states, there could be an extended redemption period in which the previous owner could still pay taxes and redeem.
For me, it has been helpful to read every government website concerning the process, state laws, and of course BP.
2 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
@Brandy Horkey
This isn’t adding up for me.
Emergency. Vacant lot rather than a hotel room or apartment. Overpaying. Facebook lead.
Next you’ll say they are fine with a quitclaim deed.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
oh my gentlemen! In case you missed it, we had some massive hurricanes come through this summer. It essentially wiped out the islands south of Orlando. There are thousands of Puerto Rican’s flooding into Florida looking for a safe place to live. This lady has her parents living with her but they want to find a spot that is similar to where they used to live. They want to buy a mobile home and place it on the lot.
I listed the price higher than comps but you must understand that this is a very low dollar transaction and in cash. I am talking a difference in a couple thousand dollars, not tens or hundreds. And yes, she is trying to negotiate the price down.
I do not plan to just sign my deed over to this lady on the spot. I’m not stupid and I have some other loose ends that need to be tied up first.
Personally, I wouldn’t want to live in a hotel and I certainly wouldn’t put my folks up in one if I could afford to buy them a place. But that’s just me
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
Just a quick update for everyone. I just met with my potential buyer. She brought her husband and parents. They were very nice people and we really enjoyed talking with them. I let them know that I have to do more research into the demo lien this week and explained the options of a QC and QT. They want to go with the QT option with the understanding that it could take some time. I have more to learn and many more questions to ask but I feel confident about the buyer for now. Also, we did a more thorough walk of the property and found that there was a dock over a canal at one point. It’s overgrown and a mess back there. I don’t have the funds to keep the property and add a house to it but with a little TLC, this will be a beautiful property for someone. To those of you that have offered some level headed advise and words of wisdom and encouragement, a BIG thank you! To the couple naysayers, no firearms were needed in this process and I hope that you find some positive experiences in your endeavors that will help you to not look so negatively at a situation.
1 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
@Brandy Horkey LOL. We're naysayers now for pointing out what appeared to be red flags.
Turns out you found an actual buyer on Facebook. Congrats.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
one thing is for certain there are no shortages of good lots with clean title in FLA... I would only listen to Wayne in this thread he is an expert in that market the rest are just white noise and should be dimissed as advice or comments that are not worth anymore than the few seconds it takes to read this.. @Tom Gimer excluded he knows title LOl.. so either listen to Wayne or no one..
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4 Reply
Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Jay Hinrichs Wayne has been a big help. I also had someone reach out to me privately that had a similar situation. I’d prefer to learn from those willing to offer knowledge I can use than be brought down by negativity.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
tax sale rules are state specific and the peanut gallery that is BP Is not going to know what to do or what is the procedures.
Wayne is local and an expert at this.. and or has a ton of experience at it.,.
but end of the day a few hundred bucks spent with an attorney who specializes in tax sale deals would be money well spent.
others who question motives range from just commenting.. to simply well you know non sensical responses.
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1 Reply
Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
@Account Closed Yes, buyer is aware of the lien. My chickens have not hatched yet...
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
Just a quick update. I have this property with a title company and going through QT action now. They tell me it should be a 60 day turn around.
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Brandy HorkeyPro Member
OP
Investor · Orlando, Florida - FL · Member since 2017 · 37 posts · 18 votes
8y
It has been a while since I've had any updates but I wanted to add a few things today.
I had originally talked about a potential buyer that I had right out of the gate! As exciting as the prospect of a buyer that fast was, I am glad now that it did not work out. After meeting with the buyer, we decided to pursue the quiet title. I found an excellent company to help me through the process. It took a little longer than anticipated but we got it done and finalized in March. The potential buyer disappeared on me, which was OK. We had agreed on a price that would leave me without any profit at all.
I ended up relisting the property on Facebook Marketplace for a higher price than what I knew I could get for it while we were waiting on the QT to come back. I figured if someone did come along willing to pay it, then YAY for me! Over the next few weeks, I slowly lowered the price and had a lot of interest in the property. I also tried listing it on Zillow. Since we were going through the QT action at the time, Zillow listed the property as a Pre Foreclosure which I wasn't happy with at all, but what can you do?
Once the QT cleared the court and I had paperwork in hand, I lowered the price to a level that I feel is still sell-able with a little wiggle room for negotiation so that I still make a bit of profit. I updated the Zillow add and they removed the Pre Forclosure note. I have now been getting a few nibbles from realtors and I recently received a couple serious inquiries into the property. One gentleman noted that he had been watching the property since it started at the high price and he is now ready to negotiate at my low price.(Good thing I left wiggle room!)
I have meetings set up at the property with 2 potential buyers this evening. Though I would love to sell this as a cash only sale, I have decided(after talking to my attorney) that I am also willing to offer owner financing as an option. Fingers crossed that one of these meetings tonight will be fruitful.
As for the property itself, we have been out there several times over the last few months to clear out debris, trim trees, and cut grass. I have put out marker flags to show the approximate property lines and added a For Sale sign to the front which can be seen from the main road. I have had several neighbors call looking for information but all have said the price was still too high for them(One man told me he bought his property a few lots down with a house for 30k) The property looks a lot better than when I first bought it so I am happy with that.
I am starting to finally see the end of the tunnel though I am in no rush so I can take all the time I need in order to sell the property for a price that I am happy with. Whether I sell to a cash buyer or do owner financing, I am still selling and bringing in money. I will try to update this once the sale is final :)
1 Reply
Account Closed
Real Estate Agent · Orlando, FL · Member since 2017 · 1 post · 0 votes
8y
@Brandy Horkey, I just came across this post and I see that you already got your QT. Nice to see that you were being honest with your buyers. There are 2 companies(one based out of Ca and one locally here in Fl) which specialize in getting the same without having to go thru the long 2-4 month court process. They also run deals time to time to bring down your costs. Since you already got your QT you are probably looking for a quick sale. Since the lot has no deed restrictions on having a mobile home on it your chances of selling it is much higher. Whenever land lots come up for sale the most frequently asked question from buyers is if they can put a mobile home on it. I've rarely got interest for individual lots from builders or such. Good luck and let us know if you managed to get any profit and if your time and effort was worth it.
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