Updated almost 10 years ago on . Most recent reply
Florida tax liens
I'm considering bidding on some tax certificates in Florida.
Does anyone know what the typical winning interest rates have been over the past few years?
This is my first foray into this. I can borrow funds at 1-2% over the next 2 years. Is there any reason NOT to throw a lot of money into a portfolio of certificates?
Most Popular Reply
Most of the institutional bidders do exactly that, create tons of entities and bid .25% with all of them hoping to get it. It is low risk on the premium properties, stay away from vacant lots and rough areas and most will get redeemed and you'll earn your interest. The ones that aren't quickly redeemed can tie your money up for a while. If it doesn't get redeemed within 2 years of the delinquency you can foreclose and pay off all other certificates and the other required fees, sending it to tax deed sale. If the property has any value it will sell 3rd party, if not you'll end up as the owner (that generally happens on vacant lots with little to no value). Here in Pinellas the only ones that go to the certificate holder are vacant lots in the hood where the city demolished the house, complete with a 5 figure demolition lien attached.