Florida Tips for Tax Liens
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Ready to invest in tax liens "certificates”, but don’t know where to start? Well, you will now! Use the invest-small-amount-of-money strategy to get the best return on your investment. The focus of this page is to provide strategy, insight, tips and information for investors. FYI: Tax certificate issuance creates a lien, it is for this reason you will commonly find the terms tax certificate and tax lien used interchangeably. Want to have an answer to the
what is, why buy of Tax Certificates? Here are the answers.
Would you rather give your distant cousin Jojo a loan for $4,000 or loan all your favorite relatives $200 a piece? The risk would be higher if you wrote a single loan to Jojo. Most of your relatives would pay you back the $200. By being able to invest over a larger group you have reduced your risk. You have also reduced your risk by picking your favorite relatives with the most potential for repayment plus interest. Let’s say there is no cost, beyond the $4,000, to you regardless of how many loans you make. So, if you make loans to 20 favorite relatives for $200 each it doesn’t cost more than writing a single loan to Jojo for $4,000. Now don’t get me wrong, Jojo is a good guy and he will pay you back plus interest almost every time. But what if Jojo doesn’t tell you he filed for bankruptcy or government liens are attached to all his belongings; would you give him the loan anyways? What if you could check to see if Jojo has these problems before loaning him the money? In tax lien investing there is a way, it is called a tax certificate or lien file and in this file you can locate most of your due diligence information. Now after Jojo or any relative gets the money, they may file for bankruptcy or have liens placed against their property, you can’t control that. But, what’s the likelihood that these things will happen to 20 of your favorite relatives after the loan is made? It’s pretty slim and in the InvestSmallAmountOf Money strategy for tax liens, the best advice is to stay away from Jojo’s. Everyone has a different idea of what InvestSmallAmountOfMoney means to them. Maybe for you, it would be that Miami-Dade County tax certificate that is currently available to purchase over the counter from the Tax Collector for $381,106.58 advertised number 420030313. This certificate “lien” is against a very nice waterfront commercial development in Miami on Brickell Ave and has an assessed 2008 value of 196 million, folio number (property identification number 0141380340020). For me, that’s a lot of money to loan Jojo. I prefer to spread the investment over many certificates with each certificate having a value of a few hundred dollars. There are numerous reasons for this which we will discuss in full detail. But, I can tell you the above specific Jojo has 4 million in delinquent taxes which will need to be considered. So, your InvestSmallAmountOfMoney plan for tax liens should be stick to the middle of the road. (Following pages will fully disclose the investing criteria I use for middle of the road and InvestSmallAmountOfMoney strategies). For those new to tax lien investing I would suggest purchasing those current year certificates offered either at the online sales on or before June 1 of each year or purchasing those current year certificates offered over the counter. The reason for buying current year certificates is that access to records and information is much easier to reach. Some excellent information on tax certificate investing can be found at the Broward County Revenue Collection Division, “Tax Collector’s” Office. Currently, there are a number of Florida counties offering on-line tax lien "certificate" auctions. The three most prominent hosts for these auctions are: Grant Street Group, Bid4assets, and real auction. I much prefer the grant street group site due to ease of operation. The list of counties offering certificates online and their host sites are currently:
Once you have completed the free registration/login with Grant Street you can easily transfer between the counties that they service without leaving the site of entrance. The research tools are very good and always use the demo auction before bidding the first time. Here's the link to Grant Street Group so you can take a quick look. But before you run off, there is more to know before you purchase tax liens so keep looking, my future pages will include more tips, info, and we haven't talked of risks yet. All three sites are contracted service providers hired directly by the county governments and the county will issue tax certificates directly to the winning bidders. Now that we have covered some of the basics of where to find the auctions, and I know some parts are still gray and there are many questions to be answered, we can start painting in some additional details. I want you to put your InvestSmallAmountOfMoney strategy to use but first we need to discuss some additional details such as risks, techniques for success and using archives to buy tax delinquent property before the auction. It is worth the time and when you are ready you will easily be able to move beyond this site with confidence.
Tax Lien Investor (on Nav Bar)
Tax-Certificate, Florida. What is and Why buy answers.
Florida Annual Tax Certificate Sale "Auction" Bidder's Guide.
Learn to buy tax certificates OTC "over the counter"
Tax Certificate Strategy, middle of the road and invest-small.
Tax Certificate research criteria for a successful investment.
The tax sale research tools for a successful bid.
Tax Certificate Research Tool.
Risks and possible outcomes of tax certificate investing. Common Certificate questions & answers.
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