investing in tax deeds seminar for brevard co presentation used

By: Sandra Edmondwww.QueenofTaxDeeds.com

Copyright Sandra Edmond, www.QueenofTaxDeeds.com 1

Go to QueenOfTaxDeeds.com

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Born in New Jersey, FL last 22 years

Graduate of UCF

Before Real Estate

Tax Deeds in 2004


You are encouraged to seek council from a knowledgeable professional on this or any other investment with which you are unfamiliar as to legal, financial and tax implications prior to implementing the techniques and processes discussed in this booklet and seminar. Always do your own due diligence and not solely rely on the information I have provided in this material and in the class.


Seminar

FL Public Records Laws

Florida Statutes Chapter 197: TAX COLLECTIONS, SALES, AND LIENS

See www.QueenofTaxDeeds.com for entire Chapter 197



•Represents a lien on unpaid real estate.

•The TLC cost is a total of the unpaid taxes and can include the assessments, advertising costs and fees.

A TLC is a 1st position lien (Senior Lien).


Special Provisions:

•Expire after 7 years!

One of the safest investments and give a better return than most investments on the open market, especially in an economy like we are currently in.

The Tax Lien Certificate Holder may apply for a Tax Deed as of April 1st of the second calendar year from the date of purchase. If the property owner fails to pay the tax debt, the property is sold at public auction.


Money Tied up until Redeemed Expires in 7 years Bankruptcy – if the owner files for bankruptcy

after you have purchase the certificate (during the redemption period), this may delay your payoff.◦ Taxes are a 1st position lien so likely the bankruptcy

court will uphold lien. It may take months for that to happen and the payoff may be less.

◦ Reduce chances by investing in Tax Certificates of more expensive homes have a lower risk of bankruptcy.



TD - is a public auction where property is sold to the highest bidder in order to recover delinquent property taxes. A Tax Deed wipes out all

junior liens except certain government liens.

Homestead Exempt Properties opening bid are ___________ of the assessed value.

Tax Deeds involve a greater risk and more work but the payoff is sometimes double if not triple your

investment.


TD - is a public auction where property is sold to the highest bidder in order to recover delinquent property taxes.

At a Tax Deed Sale YOU GET THE DEED, NOT A LIEN

YOU GET THE DEED, NOT A LIEN

YOU GET THE DEED, NOT A LIEN

A Tax Deed wipes out all junior liens except certain government liens.

Timing is everything


Vacant Commercial Lot between ¼ -½ acre 1st Partner used 401K money Costs: $12,800

◦ 6,000 Original Code Enforcement Liens Total ◦ 4,000 Reduced Code Enforcement Liens Total◦ Bank Atlantic Mortgage on title, and other liens

Marketed Property◦ Contract within 2 months

◦ for $49,000; Closed a few months later Sold the research Leads from Lands Available/ List of Lands


Buying Tax Certificates High Interest Rate Small Chance at Getting the PropertyBuying Tax Deeds Buy the Property Chances to Buy: Before, During and After

the Sale


Buy Tax Deeds


Tax Deed foreclosure properties sell anywhere from 10-50% of the value.

Mortgage foreclosures properties generally sell at 60-85% of the value

Redemption Period – the amount of time a property owner has to pay off the taxes after a Tax Lien Certificate or Tax Deed.


•No “redemption period” on Tax Deeds; Once the Deed is “struck” or signed

•2 year Redemption period on Certificates

•Most other states vary from 6mo – 4 yrs

ALL SALES ARE FINAL!!!

Buyer BEWARE

Don’t get banned from the Sale Florida Statute

197.542(1)


List of Lands/ Lands Available Purchase for back taxes and fee After 3 years the properties “escheat” (goes directly) to the county (for free).


County clerk’s file on the property includes an Ownership & Encumbrance Report (aka O&E) ◦ O&E is similar to a Title Search◦ 20 year search of past owner and any liens or

encumbrances on the title◦ Starting point – let’s you know if it is worth

pursuing


IRS Liens – Superior or Junior to Tax Deed?IRS has 120 days to redeem or buyout your Tax Deed and pay the following: Actual amount paid by Tax Deed buyer plus 6% Buyer’s expenses from the sale including the cost of the

protection and maintenance of the property Talk to an Attorney

[Internal Revenue Service Code, Section 7425(d), USC Title 26]


Private or Corporate Judgments, Mortgages,

including Bank Mortgages!


Property had a $16,000 Mortgage Approx $3,000 in Delinquent Taxes Other Junior Liens After Sale Overage goes in this order

1. 3,000 Delinquent Taxes paid off first2. 16,000 SunTrust Mortgage 3. Other Junior Liens


◦ Quite Title is 1 of 4 ways to get Clear Title◦ The court’s way of verifying that the County Clerk

correctly administered the Tax Deed Sale. ◦ A lawsuit to establish a party's title to real property

against anyone and everyone, and thus forever "quiet" any challenges or claims to the title.

◦ Verifies notification to all owners and lien holders of record

◦ 3-6 month process◦ Cost approx. $1,200

Use LOCAL REAL ESTATE ATTORNEYS who are EXPERIENCED in Quiet Titles ONLY


Vacant Commercial Lot off US 1 Paid to research and guided her through

◦ Tax Deed Purchase, Code Lien Reduction, finding an attorney to do Quiet Title

Total Invested about $23,000-31,000 Sold about a year later for $105,000 Lands Available / List of Lands


$50 lots in Ocala area Purchased before the auction and I paid back

taxes◦ $1200 Back Taxes (approx)◦ $50 Purchase price◦ =$1250 invested in each lot

Sold one of the lots for $4,000 for a $2,300 profit Sold the other for $7,000 for a $4,700 profit Using the ‘Capital Loss Flier’ and sold one on

eBay


Some Property owners are taking a tax loss

instead of trying to sell their properties


Remote Area of Ocala Tax Records showed a home Broke rule- Didn’t see property prior to

purchase Home looked occupied!!! Tenants paying rent, hired an attorney County will give immediate possession


"Any person, firm, corporation or county that is the grantee of any tax deed under this shall be entitled to the immediate possession of the lands described in the deed. If a demand for possession is refused, the purchaser may apply to the circuit court for a writ of assistance upon 5 days' notice directed to the person refusing to deliver possession. Upon service of the responsive pleadings, if any, the matter shall proceed as in chancery cases. If the court finds for the applicant, an order shall be issued by the court directing the sheriff to put the grantee in possession of the lands."

FL Statutes 197.562



The use or enjoyment of real property with a claim of right when that use or enjoyment is continuous, exclusive, hostile, open, and notorious.

Black’s Law Dictionary

Constructive Adverse Possession - Adverse possession in which the claim arises from the claimant’s payment of taxes under color of right rather than by actual possession of the land.

Black’s Law Dictionary

Partner and I took possession of a home for back taxes only

“Tenants” (Squatters) were living in the home, but ‘encouraged’ to leave◦ The family lived there for 4-6 years RENT FREE

Block home $15,000 in Repairs Now rents with No Mortgage!!!


You must know the criteria for homes or land that can be

Adversely possessed


Beautiful, cleared lot near well maintained homes Few months later it was the neighborhood car

wash and fried fish stand without my permission Squatters or Trespassers? Civil or Criminal Matter?



“This year investors left $5.7 million in tax certificates unsold at the May 30 sale. Last year, $450,000 were unsold.”

“Another thing that happened this year was that investors… held out for higher interest rates…the average rose from 3.3 percent last year to 10.4 percent this year.”

The Ledger - Lakeland, FL 6/14/2008

Little Competition

Many possibilities◦ Purchase before tax deed sale, at the sale, or after the sale◦ If buying a home or commercial on an Option, use deeds

acquired through “Capital Loss” as collateral in that Option.


“Across Central Florida, the number of delinquent taxpayers has increased 24 percent from last year. A record 110,000-plus property owners in Orange, Seminole, Osceola, Lake, Volusia and Brevard counties owe tax collectors more than $320 million. To put that figure in perspective, it's comparable to the total amount

of taxes and fees collected by the city of Orlando in 2006.”


Orlando Sentinel 5/29/08

CFRI Lake Mary Training Class


Competitive Advantage

•Hear from a real estate attorney who is an expert on Tax Deeds – risks, benefits, and protection

•Best time to buy Tax Deeds: before the auction, at the auction or after the auction

•Where to Buy

•Do the property owners and these banks really lose the property at a Tax Deed sale?


•How to find the Tax Lien Certificates that will give you the best return on your investment

•Techniques for selling real estate on eBay

•Finding Cash Buyers

•How to get in the game with very little money


In addition to that you’ll get a front row seat at a real Tax Deed Auction, meet a high bidder and learn some strategies for out foxing the big dogs at these auctions. We’ll also give you hands on experience doing the research.

“Going Once, Going Twice…”

Get the Queen of Tax Deeds Newsletter


www.QueenOfTaxDeeds.com

Stories from the TrenchesTax Deed Hunting

Stories from the Trenches…


Tax Deed Hunting

”Our daughter, Amanda, does a lot of the initial research and prints out tax roll information and aerial photos of each property.”

“It is like a treasure hunt for us. The three of us enjoy discussing the possibilities and learning so much about how it all works. Mike said ‘I see how you could become addicted to this’. So now he’s hooked and we are anxiously waiting for the next (Tax Deed) sale.”

Tax Deed Hunting


Training Classwww.QueenOfTaxDeeds.com


Are you interested in Property Available for just the Back Taxes?

Statewide List coming soon of all of Fl’s 60+ counties with property available over the counter. Sign up for the Newsletter to get info on when the Statewide List will be available at www.QueenOfTaxDeeds.com.

By: Sandra Edmondwww.QueenofTaxDeeds.com


investing in tax deeds seminar for brevard co presentation used

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