Interested in knowing more about buying tax deeds in Florida? With the right knowledge you can make massive profits, and I’ll give you all the information you need.
I’m Ted Thomas, and I’ve been involved in tax liens and tax deeds for many years. This is a little-known and highly lucrative business for the few people that take the time to learn it.
Does Florida sell tax deeds? Yes, and today I’m answering your question about “How to Buy Tax Deed Properties in Florida.”
I don’t know how much experience you have with tax deed or tax lien properties in Florida.
For those wondering, “How do I purchase property tax deeds in Florida?” I’ll give you some foundational material that will allow you to make better decisions when you are buying tax deeds in Florida at auction.
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This business has been around for over 200 years. It was created by local, state and county governments to collect money for government services.
The average man in the street doesn’t think every day about how to fix the roads or how to build schools or hire school teachers. The fact is these government services must be paid for.
Certainly, we want firefighters to protect our homes and offices plus police to handle criminal situations. All of the government services must be funded and paid for by the county.
The property taxes on homes, offices and privately owned property are always assessed. That’s called a levy which is an encumbrance. All private properties will have them.
The residents at the county level all participate to pay a fair share of the local government bills. Money is collected by the local county, and in some cases by the municipalities, to pay for government services.
The county needs money to continue the day-to-day functions and has the responsibility to pay employees, health care, and pension plans. All of this comes from property taxes.
DELINQUENT PROPERTY TAXES
Florida is divided into 67 counties which are authorized to operate local governments.
Additionally, the legislature of the state of Florida authorizes the county to levy and collect taxes.
If the property owner fails to pay property taxes, the state legislature authorizes the county to confiscate the tax delinquent property and dispose of the property at a public auction.
This process and system have been in place since the state was established and became a legal entity.
In a nutshell, all privately owned properties are required to pay property tax, and properties are seized and auctioned if the property owner fails or refuses to pay property tax.
TAX DEED AUCTIONS
Now let’s talk about how to buy tax deeds in Florida.
How do tax deed sales work in Florida? Hundreds of tax deed properties are auctioned to the highest bidder at a public auction, and those properties are mortgage-free.
Property taxes are usually only 1 to 2 percent of the tax assessed value annually. For example, a home valued at $150,000 may have a property tax bill of $1,500.
That $1,500 is the property owner’s contribution to helping pay for school teachers, schools, police departments, and firefighters.
ATTENDING AN AUCTION
Delinquent tax defaulted properties are sold at public auctions that anyone can attend and to qualify is simple. Register at the door.
If you’re buying tax deeds in Florida, some auctions may require that you demonstrate you have funds to bid, while others may not ask you.
The auctions in rural counties with small populations have only a few properties, and the auction is conducted by county officials, usually people from the Treasurer’s office.
The counties are authorized to use professional auctioneers. However, keep in mind, that will add to the price by 10 or 11 percent.
The auctions are held in public buildings. In many cases, it really is “on the courthouse steps.”
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BIDDING AT AN AUCTION
The bidding at tax deed sales in Florida will usually start at very close to defaulted taxes and unpaid fees.
The Treasurer determines what is owed to the county, which is obviously at least the back taxes, and in some cases, late fees and other assessments, like garbage fees or property clean-up.
When buying tax deeds in Florida, bidders should expect the bidding to start at 10 to 20 percent of the most recent tax assessment.
The auctioneer, usually a county employee, will open the bidding and explain the process to the audience.
Tax deed auctions are up-bid, meaning the highest bidder is the winner… Going once, going twice, sold.
In Florida, the winner will be required to pay in cash or cash equivalent. This will be stipulated by the auction rules.
However, Florida government officials are always concerned about cash. They are concerned about drug money being laundered. When you’re buying tax deeds in the Florida, the rules are your guideline.
KNOW AND FOLLOW THE RULES
If you are not already aware of this, I’ll give you clarity at this point.
The Treasurer is the most powerful government employee. The rules, the conduct, and the procedures of the auction all come under the Treasurer’s direction.
Many counties will have Sheriffs in attendance under direction of the Treasurer.
In decades of attending auctions, I can assure you that you will follow the published and posted rules, or you will be removed from the auction room.
FLORIDA TAX DEED SALES LIST
All Florida counties are authorized to sell tax delinquent property at public auctions, and each county will publish a list of scheduled auction properties.
A county like Orange county, which is Orlando, may have one or more auctions monthly, and the auction may only have 5 to 15 properties.
As a comparison, Broward County, which is Fort Lauderdale, may have one or two auctions a year with 100 or 200 properties. It’s up to the county.
In all instances, the county will publish auction lists of properties. They will publish this list on the county website and in a local newspaper.
We hope you enjoyed Ted’s lesson, “Buying Tax Deeds in Florida”
The state of Florida conducts 2 types of auctions, tax lien auctions which sell tax lien certificates and tax deed auctions that sell tax defaulted property.
The county treasurer levies and collects property taxes. When the property taxes are not paid, the treasurer may confiscate the property and sell it at a tax deed auction.
If you’re interested in buying tax deeds in Florida, you can find auction announcements and lists of tax deed properties published in the local newspaper and on the county’s website.
Anyone can attend these auctions, though at some venues, you may be required to prove that you have the funds to bid.
The opening bid at the auction will be close to the amount of the unpaid property taxes. These are up-bid auctions, meaning the highest bid wins.
Usually the auction will be conducted by county officials, however the county could use a professional auctioneer. Note that the latter could add 10% or more to the price.
Smaller counties that hold one or more auctions monthly will have fewer tax deed properties for sale, while larger counties that hold auctions annually or semi-annually could have 100 to 200 properties up for sale.
At Florida tax deed auctions, you can get real estate at amazing bargains, 10 cents, 20 cents, or 30 cents on the dollar, since the bidding begins around the amount of the unpaid property taxes which are a small fraction of the property’s assessed value.
Additionally, you get the property without a mortgage.
Having a profit margin like that significantly mitigates your risk and makes a quick resale possible because you can offer the property for sale at a hefty discount and still make profits of $25,000, $50,000 or even $100,000 on one deal.
Are tax deeds a good investment? This is such an excellent investment that with the right training, buying and selling tax deed property can make you financially independent. See what Ted’s students have to say about it.
If you’d like to know more about how to make massive profits from tax delinquent real estate, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal coaching.
Ted can teach you how to do this and save you from making costly mistakes. If you want to learn more, start with the FREE Master Class. It costs you nothing, so why wait? Why put off changing your life for the better?