Florida Tax Lien Certificates
The May tax lien certificate sale in my county in Florida resulted in most certificates selling for 1/4%. How can I profit buying these with most selling for such a low interest rate?
Most Popular Reply
@Bill Williams Thanks for asking the question.
99% of the people have no clue about the right answer... So let me give you a little insight. Tax Auctions are not a lot of hype like everybody thinks. They always have very specific rules. In Florida the certificates start at 18% and the bidding process goes like this.. 18%, 17 1/2%, 17%. In other words it's a bid down process. If you understand the rules in Florida you will find out it is a great state to buy tax lien certificates. A few savvy bidder bid 1/4% because they know that Florida pays a minimum of 5%. Think about that, the savvy bidder invested a 1/4% and when they get paid they get 5%. That's a lot more than Bank Of America or Chase is paying right now.
Respectfully,