At a Florida Tax Sale There’s Something for Everyone
I’m Ted Thomas, and today I’m going to answer your question, “What is a Florida tax sale?” I’m also going to give you some inside tips on how to make money at a Florida tax sale.
Florida has 67 counties. The big counties are all in the south part of the state. About 40% of the population lives between Dade, Broward and West Palm Beach.
So, what is a Florida tax sale? I’m going to give you some foundational material here so you can understand the difference between tax sales, meaning a tax auction, and tax lien certificates.
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Florida Tax Sale – Tax Lien Certificates
Does Florida sell tax liens? Yes, Florida will have 1 million tax lien certificates available each May and June because 1 million people do not pay their property taxes.
Tax certificates pay up to 18% in Florida.
Florida is a very benevolent state. What does that mean? It means they don’t take the property away from people. They issue a tax lien certificate, which gives the property owner a year to 2 years to pay their taxes.
When they do, they’re going to have to pay a fee, a penalty for late taxes, of about a percent and a half a month or 18% a year.
If you’re buying a tax lien certificate, you’re just getting a piece of paper and waiting to get paid on that.
Florida Tax Sale – Tax Deeds
If the property does not sell and does not get redeemed, then a whole new thing happens.
For example, if they have a tax lien certificate auction, most of the certificates will sell. If they don’t sell, they’ll be put on a leftover list, and most of the rest will probably sell there.
Florida Tax Sale – Tax Deed Auction
Ultimately, if they don’t sell, there will be a tax deed auction. That’s a separate and unique auction where they’re actually going to sell the property.
When they sell the property, the starting bid is going to be those back taxes of maybe 2 or 3 years plus any late fees.
Florida Tax Sale – Bargain Real Estate
The starting bid will usually be 10 or 20 cents on the dollar, then you can bid anything you want above that. However, if you bid too high above that, you won’t be able to make money.
The point is if the property has an assessed value of $100,000, it could easily sell for less than $20,000.
Florida Tax Sale – Buying at a Florida Tax Sale
How do you buy these properties? It’s very easy.
Each auction will be at the county level. 67 auctions will take place, and in some counties, like Orlando and Miami, will have an auction every 2 weeks of these properties.
There are plenty of properties. It doesn’t matter where you are, you can attend Florida tax sales online or offline.
People in the United Kingdom buy them. People in Canada, Asia and in places like Singapore and Bangkok can come to a Florida tax sale except they’ll do all of that online.
Florida Tax Sale – A Business of Abundance
Is there enough for everybody? Yes, there’s certainly enough for everyone. There are a million tax lien properties in Florida.
The amount available at the average sale depends upon what city it’s in. For example, if it’s in Miami, they will have anywhere from 100 to 150 properties.
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Florida Tax Sale – Tax Lien Certificates and Tax Deeds
There are 2 things available here.
Tax Lien Certificate
One is a tax lien certificate which could earn you up to 18%, or you could earn a percent and a half a month. Those are the maximum rates.
Bid Down Auction
For those asking, “How do I purchase a tax lien in Florida?” you could make 18%, but it’s a bid down process at Florida tax lien sales. Bid down means this.
The auction starts at 18%. The next bid is 17 and a half percent, 17%, then 16 and a half percent. It could go all the way down to a half of 1%.
Tax deeds at Florida tax sales are going to start at 10 or 20 cents on the dollar. A tax deed sale is really an auction in Florida.
Highest Bid Wins
How does a tax deed sale work in Florida? A tax deed auction is not like a tax lien certificate auction. It will start at the back taxes plus whatever late fees, and then the highest bidder will get it.
In summary, there are 2 different types of auctions in Florida:
- Tax lien auctions going down
- Tax deed auctions, starting at the back taxes plus fees and going up
You can go to either one.
Florida Tax Sale – Conclusion
If you’re wondering, “How do I buy tax delinquent property in Florida?” be assured there’s something for everyone there.
The tax deed auction is very popular with entrepreneurs, people willing to fix up properties, people who want to make big money.
The profit margins are huge because at a Florida tax deed auction, you can get mortgage-free properties for pennies on the dollar.
Tax lien auctions are for people who’ve got gray hair and want a predictable, certain, and secure passive investment that keeps ahead of inflation.
Tax lien certificates in Florida pay interest rates of up to 18%, making them a low-risk investment that also pays high yields, and they’re secured by real estate. So, if you don’t get paid, you get the property.
If you’d like to know more about how to get the best bargains in 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 one-on-one coaching.
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