Investor · Hudson, FL · Member since 2012 · 67 posts · 13 votes
Trying to find out what happens after you buy a tax deed from the county. What are the advantages of this strategy? How long would it take to realize a profit? If the original owner wants to buy it back how much interest do they have to pay? Any feedback would be great, thanks!
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
Kevin, you may be confusing Tax Deeds and Tax Certificates, assuming you are referring to Fl. Tax Certificates are where you pay the county the over due tax, lend them money, for a set interest rate. If the owner, or other certificate holder pays the taxes, you get your interest. A Tax Deed is when a Tax Certicate holder sends the property to a public auction, to get repaid, and the high bidder at that auction receives title to the property by a Tax Deed.
Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
12y
Kevin,
I am very new to tax lien investing, buying one over-the-counter lien after the main tax sale in Baltimore this past May. I know tax lien/deed situations vary by county/city/state. If I proceed with the foreclosure - which is the point at which I am now and have to decide what to do - it could be 1 to 2 years before I get the house if the owner does not redeem (which could happen right up to the last minute and possibly 30 days past judgment). The interest rate where I am is 18%, I believe. It takes patience, that is for sure, but if you strategize and have a great deal of luck, I think, you can pick up some absolute bargains.
There are several people on BP that are very notable on tax liens. Do some searches and you will see a lot of information.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
Kevin, you may be confusing Tax Deeds and Tax Certificates, assuming you are referring to Fl. Tax Certificates are where you pay the county the over due tax, lend them money, for a set interest rate. If the owner, or other certificate holder pays the taxes, you get your interest. A Tax Deed is when a Tax Certicate holder sends the property to a public auction, to get repaid, and the high bidder at that auction receives title to the property by a Tax Deed.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
In Fl I'm not sure, as that means no one wanted it for the taxes owed, so I'm not interested. But remember, you had to come up with the money to pay off all the other certificate holders(all the other years of back taxes) before you can send it to auction. And if you got the property back, that means no one else thought the property was worth the costs of the taxes. When you ask about tax liens/certificates/deeds you need to specify the state, as all procedures/laws are different.
Investor · Belton, TX · Member since 2013 · 47 posts · 9 votes
12y
THis is fun stuff! First make Darn sure what the laws are in your state. In Texas non Homestead is 6months redemption period and 2year if Homestead. But Texas rocks because it is 25% first year interest then 50% in second year. But, But, make sure you do your due diligence because if a lien owner is not mentioned in the judgement you own the lien. Could be scary if you dont do the work. But huge profit possibility. Example bought a 2.9 acre tract of land for 5K waited the 6 month and sold it for 34K. Good luck