All Forum Posts by: Anthony Yannucci

@David Dey, @Michel Steele

1. From your example, how would I determine if years 1-3 worth of back taxes were being covered by the TD sale rather than the full 8 years worth of back taxes?

2. How much do you pay per property on CTS to get clear title?

3. Do you guys have an ordered checklist of things to "do homework" on that you could share with me? I'd like to be as thorough as possible.

Thanks guys!

Jordan

As far as liens are concerned would either of you two know of a good book, website, text, etc on tax deeds or liens? I understand that if a lien is put on a property the owner of the tax certificate is entitled to what ever the principal plus interest (someone i was talking to mentioned to me that the interest can amount to 20%, but i take everything i hear with a grain of salt). I'd like to know exactly how the rate of interest is determined, is interest compounding annually on liens or is it solely based on the principal amount, how many periods a year could i potentially compound said interest if it is compounding (however, i am assuming its annual), and if the tax certificate is never redeemed are there any expenses to get the property to auction. Also, when a property is sold at auction, how much of that does the owner of the tax certificate receive? 

On the other hand, I am interested in buying properties at tax auctions also. What are some draw backs to purchasing properties at auction, are there potential hidden expenses that a property can bring along (other than structural issues a building may present).

I never invested in Florida, but just looked this up.

Property owners are required to pay property taxes on an annual basis to the County Tax Collector. If the owner does not pay his/her taxes, in June of the following year a tax certificate will be sold by the Tax Collector. Generally, if the tax certificate has not been redeemed within two years, the holder of the certificate can apply to force a public auction of the property. This auction is referred to as a “Tax Deed Sale” and the monies collected from the sale are used to pay off the amount owed to the certificate holder.

Look up redemption period on tax liens.  

For example, you buy a sfh from a tax sale, the right of redemption period is usally two years, depends on state. Then another investor contacts the previous owner, (the guy who lost his sfh to tax debts), pays him a couple dollars to redeem the property back to himself using this investors money, (investor gets house in the end).  It goes to court, the judge will give you average monies for your improvements, then the property goes back to the 1st guy, then he sells it to the investor.  If you do this route, wait two years, after the redemption period before you improve property, so add in 2 years of taxes to your expenses.  hope this helps

Hello, I am a new investor starting with tax deeds. I was curious how a property goes from owned by a person, to going up for a lien, to going to a tax deed sale and if i buy at a tax deed sale does the person with the tax lien have first dibs to the property?. I live in florida by the way. Thank you

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Any experienced BP users do tax sales in GA or a state that has similar process that could answer some questions for me?

Am interested in buying tax liens at auctions but would like to clear up some things.

Do other liens stay with the property?
How long is redemption period (I think it's one year?)
How do I properly bid at the auction and how high should I go?
If homeowner decides to pay the lien after I bought it, can I charge interest and if so how much?
What is the ratio of tax liens being paid off by the homeowner vs. being able to redeem the property?

I'm sure I have other questions, but if anyone can help with those, that would be great.

Thanks,
Daniel

No I have not.  In Indianapolis we have what is called the tax surplus sale.  Which is all the tax deed properties that don't get purchased.  

I shop at surplus sale because there is no redemption period.   However, I have just learned  (heard) that in the future the deed sales are eliminating the redemption period which would really make it worth while for me.  Definitely looking into it!  

In Indy the when you buy a deed and the deed gets redeemed then they pay you like 10% on your money.  Not sure the exact percentage but I run a business that needs properties in Inventory.  So earning 10% and not getting deals isn't that exciting to me.