Tax liens are selling for 0.25%

[Sean Cassidy]

I am new at this and was hoping to buy some tax liens here in Miami, Florida. I think I found the correct list for last year's liens sold. The problem is that almost all the bids won were at 0.25%. This is really not worth doing. Am I missing something? I realize many are buying in the hopes of getting the property but I was hoping they would go for 6% or so. is 0.25% what most liens end up selling for?

[Will Sifert]

Originally posted by @Ned Carey:

@Sean Cassidy yes you figured it out it is NOT worth doing.

If I understand correctly, In Fl the tax lien holder does not even get the property if it goes to foreclosure. If a tax lien holder forces a tax foreclosure they're is a second auction where the property sells to a new party and the taxes are paid out of the proceeds. FL is probably one of the worst states to do tax liens in.

@Yael Maroko I am sure he is saying .25%. In other words LESS than 1%.

My guess is that by buying the lien you get to but subsequent liens at the full percentage.  But given how quickly most liens redeem it seems a pretty dumb game to play.

Just like every other method of investing in real estate, right now it is extremely competitive, profits are slime and risk is high. 

 I had Florida explained to me once and I have no interest in ever bidding in that system. It’s a hybrid because when you buy a tax lien if it’s not redeemed the property goes to auction to the highest bidder (like a deed sale). 

Yes the 1/4 of 1 percent interest is the rate  a lot are bidding to win the lien. I think the sub taxes may make the same rate can’t remember. There also is a min % you can make like 5% so if they are redeemed right away it’s a decent return. Also if the lien doesn’t get redeemed, the time period after redemption period expires till when the deed sells they make a much better set interest rate for those couple months. But when you add it all up it’s still a very bad rate of return and I really don’t like that you don’t get the deed if the lien isn’t redeemed. 

That is to the best of my memory, might not be 100% correction.