Investing In Tax Deeds & Tax Lien Seminar For Lake Co Presentation Used


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This is a brief presentation about how to buy property at 30-50% of the value through tax deed sales. We also covered how to invest in tax lien certificates for a 10-18% return on investment backed by the government and almost guaranteed within 2 years or less. Learn more at

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  • Copyright Sandra Edmond,
  • Investing In Tax Deeds & Tax Lien Seminar For Lake Co Presentation Used

    1. 1. By: Sandra Edmond Copyright Sandra Edmond,
    2. 2. <ul><li>Born in New Jersey, FL last 22 years </li></ul><ul><li>Graduate of UCF </li></ul><ul><li>Before Real Estate </li></ul><ul><li>Tax Deeds in 2004 </li></ul>Copyright Sandra Edmond,
    3. 3. <ul><li>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. </li></ul>Copyright Sandra Edmond,
    4. 4. <ul><li>Seminar </li></ul><ul><li>FL Public Records Laws </li></ul><ul><li>Florida Statutes Chapter 197: TAX COLLECTIONS, SALES, AND LIENS </li></ul><ul><ul><ul><ul><li>See for entire Chapter 197 </li></ul></ul></ul></ul>Copyright Sandra Edmond,
    5. 5. Copyright Sandra Edmond, Represents a lien on unpaid real estate. Interest accrues on the TLC from June 1 until the taxes are paid. 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).
    6. 6. Copyright Sandra Edmond, <ul><li>Special Provisions: </li></ul><ul><li>Homestead Properties </li></ul><ul><li>Bankruptcy </li></ul><ul><li>Expiration date </li></ul>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.
    7. 7. <ul><li>Bidding Method – Florida uses a Bid Down. The bidder willing to accept the lowest interest rate wins the auction. </li></ul><ul><ul><li>¼ % Lowest bid receives minimum 3 or 5% penalty . </li></ul></ul><ul><ul><li>0% </li></ul></ul><ul><ul><li>Penalty versus Interest </li></ul></ul><ul><ul><li>States use various bidding methods </li></ul></ul><ul><ul><li>Some Liens can be purchased Over the Counter </li></ul></ul>Copyright Sandra Edmond,
    8. 8. <ul><li>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. </li></ul>Copyright Sandra Edmond,
    9. 9. <ul><li>Money Tied up until Redeemed </li></ul><ul><li>Expires in 7 years </li></ul><ul><li>Bankruptcy – if the owner files for bankruptcy after you have purchase the certificate (during the redemption period), this may delay your payoff. </li></ul><ul><ul><li>Taxes are a 1 st position lien so likely the bankruptcy court will uphold lien. It may take months for that to happen and the payoff may be less. </li></ul></ul><ul><ul><li>Reduce chances by investing in Tax Certificates of more expensive homes have a lower risk of bankruptcy. </li></ul></ul>Copyright Sandra Edmond,
    10. 10. Copyright Sandra Edmond, 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. <ul><li>Homestead Exempt Properties opening bid are ___________ of the assessed value. </li></ul>Tax Deeds involve a greater risk and more work but the payoff is sometimes double if not triple your investment.
    11. 11. Copyright Sandra Edmond, 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.
    12. 12. <ul><li>Timing is everything </li></ul>Copyright Sandra Edmond,
    13. 13. <ul><li>Buying Tax Certificates </li></ul><ul><li>High Interest Rate </li></ul><ul><li>Get Property </li></ul><ul><li>Buying Tax Deeds </li></ul><ul><li>Before, During and After the Sale </li></ul>Copyright Sandra Edmond,
    14. 14. <ul><ul><li>Buy Tax Deeds </li></ul></ul>Copyright Sandra Edmond, Tax Deed foreclosure properties sell anywhere from 10-50% of the value. <ul><ul><li>Mortgage foreclosures properties generally sell at 60-85% of the value </li></ul></ul>
    15. 15. <ul><li>Redemption Period – the amount of time a property owner has to pay off the taxes after a Tax Lien Certificate or Tax Deed. </li></ul>Copyright Sandra Edmond, <ul><ul><li>No “redemption period” on Tax Deeds; Once the Deed is “struck” or signed </li></ul></ul><ul><ul><li>2 year Redemption period on Certificates </li></ul></ul><ul><ul><li>Most other states vary from 6mo – 4 yrs </li></ul></ul>
    16. 16. <ul><li>ALL SALES ARE FINAL!!! </li></ul><ul><li>Buyer BEWARE </li></ul><ul><li>Don’t get banned from the Sale </li></ul><ul><li> Florida Statute 197.542(1) </li></ul>Copyright Sandra Edmond,
    17. 17. <ul><li>Vacant Commercial Lot between ¼ -½ acre </li></ul><ul><li>1 st Partner used 401K money </li></ul><ul><li>Costs: $12,800 </li></ul><ul><ul><li>6,000 Original Code Enforcement Liens Total </li></ul></ul><ul><ul><li>4,000 Reduced Code Enforcement Liens Total </li></ul></ul><ul><ul><li>Bank Atlantic Mortgage on title, and other liens </li></ul></ul><ul><ul><li>Contract within 2 months for $49,000; Closed a few months later </li></ul></ul><ul><li>Sold the research </li></ul><ul><li>Leads from Lands Available/ List of Lands </li></ul>Copyright Sandra Edmond,
    18. 18. <ul><li>List of Lands/ Lands Available </li></ul><ul><li>Purchase for back taxes and fee </li></ul><ul><li>After 3 years the properties “escheat” to county </li></ul>Copyright Sandra Edmond,
    19. 19. <ul><li>County clerk’s file on the property includes an Ownership & Encumbrance Report (aka O&E) </li></ul><ul><ul><li>O&E is similar to a Title Search </li></ul></ul><ul><ul><li>20 year search of past owner and any liens or encumbrances on the title </li></ul></ul><ul><ul><li>Starting point – let’s you know if it is worth pursuing </li></ul></ul>Copyright Sandra Edmond,
    20. 20. <ul><li>IRS Liens – Superior or Junior to Tax Deed? </li></ul><ul><ul><li>IRS has 120 days to redeem or buyout your Tax Deed and pay the following: </li></ul></ul><ul><ul><ul><li>Actual amount paid by Tax Deed buyer plus 6% </li></ul></ul></ul><ul><ul><ul><li>Buyer’s expenses from the sale including the cost of the protection and maintenance of the property </li></ul></ul></ul><ul><ul><ul><li>Talk to an Attorney </li></ul></ul></ul><ul><ul><li>[Internal Revenue Service Code, </li></ul></ul><ul><ul><li>Section 7425(d), USC Title 26] </li></ul></ul>Copyright Sandra Edmond,
    21. 21. <ul><li>Private or Corporate Judgments, Mortgages, including Bank Mortgages! </li></ul>Copyright Sandra Edmond,
    22. 22. <ul><li>Property had a $16,000 Mortgage </li></ul><ul><li>Approx $3,000 in Delinquent Taxes </li></ul><ul><li>Other Junior Liens </li></ul><ul><li>After Sale Overage goes in this order </li></ul><ul><ul><ul><li>3,000 Delinquent Taxes paid off first </li></ul></ul></ul><ul><ul><ul><li>16,000 SunTrust Mortgage </li></ul></ul></ul><ul><ul><ul><li>Other Junior Liens </li></ul></ul></ul>Copyright Sandra Edmond,
    23. 23. <ul><ul><li>Quite Title is 1 of 4 ways to get Clear Title </li></ul></ul><ul><ul><li>The court’s way of verifying that the County Clerk correctly administered the Tax Deed Sale. </li></ul></ul><ul><ul><li>A lawsuit to establish a party's title to real property against anyone and everyone, and thus forever &quot;quiet&quot; any challenges or claims to the title. </li></ul></ul><ul><ul><li>Verifies notification to all owners and lien holders of record </li></ul></ul><ul><ul><li>3-6 month process </li></ul></ul><ul><ul><li>Cost approx. $1,200 </li></ul></ul><ul><li>Use LOCAL REAL ESTATE ATTORNEYS who are EXPERIENCED in Quiet Titles ONLY </li></ul>Copyright Sandra Edmond,
    24. 24. <ul><li>Vacant Commercial Lot off US 1 </li></ul><ul><li>Paid to research and guided her through </li></ul><ul><ul><li>Tax Deed Purchase, Code Lien Reduction, finding an attorney to do Quiet Title </li></ul></ul><ul><li>Total Invested about $23,000-31,000 </li></ul><ul><li>Sold about a year later for $105,000 </li></ul><ul><li>Lands Available / List of Lands </li></ul>Copyright Sandra Edmond,
    25. 25. <ul><li>$50 lots in Ocala area </li></ul><ul><li>Purchased before the auction and I paid back taxes </li></ul><ul><ul><li>$1200 Back Taxes (approx) </li></ul></ul><ul><ul><li>$50 Purchase price </li></ul></ul><ul><ul><li>=$1250 invested in each lot </li></ul></ul><ul><li>Sold one of the lots for $4,000 for a $2,300 profit </li></ul><ul><li>Sold the other for $7,000 for a $4,700 profit </li></ul><ul><li>Using the ‘Capital Loss Flier’ and sold one on eBay </li></ul>Copyright Sandra Edmond,
    26. 26. <ul><li>Some Property owners are taking a tax loss instead of trying to sell their properties </li></ul>Copyright Sandra Edmond,
    27. 27. <ul><li>Remote Area of Ocala </li></ul><ul><li>Tax Records showed a home </li></ul><ul><li>Broke rule- Didn’t see property prior to purchase </li></ul><ul><li>Home looked occupied!!! </li></ul><ul><li>Tenants paying rent, hired an attorney </li></ul><ul><li>County will give immediate possession </li></ul>Copyright Sandra Edmond,
    28. 28. <ul><li>&quot;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.&quot; </li></ul><ul><ul><ul><ul><ul><li>FL Statutes 197.562 </li></ul></ul></ul></ul></ul>Copyright Sandra Edmond,
    29. 29. Copyright Sandra Edmond, 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
    30. 30. <ul><li>Partner and I took possession of a home for back taxes only </li></ul><ul><li>“ Tenants” (Squatters) were living in the home, but ‘encouraged’ to leave </li></ul><ul><ul><li>The family lived there for 4-6 years RENT FREE </li></ul></ul><ul><li>Block home </li></ul><ul><li>$15,000 in Repairs </li></ul><ul><li>Now rents with No Mortgage!!! </li></ul>Copyright Sandra Edmond,
    31. 31. <ul><li>You must know the criteria for homes or land that can be Adversely possessed </li></ul>Copyright Sandra Edmond,
    32. 32. <ul><li>Beautiful, cleared lot near well maintained homes </li></ul><ul><li>Few months later it was the neighborhood car wash and fried fish stand without my permission </li></ul><ul><li>Squatters or Trespassers? </li></ul><ul><li>Civil or Criminal Matter? </li></ul>Copyright Sandra Edmond,
    33. 33. Copyright Sandra Edmond, “ 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
    34. 34. <ul><li>Little Competition </li></ul><ul><li>Many possibilities </li></ul><ul><ul><li>Purchase before tax deed sale, at the sale, or after the sale </li></ul></ul><ul><ul><li>If buying a home or commercial on an Option, use deeds acquired through “Capital Loss” as collateral in that Option. </li></ul></ul>Copyright Sandra Edmond,
    35. 35. <ul><li>“ 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 . ” </li></ul>Copyright Sandra Edmond, Orlando Sentinel 5/29/08
    36. 36. <ul><li>Saturday, March 7 th at CFRI Lake Mary </li></ul>Copyright Sandra Edmond, <ul><li>Competitive Advantage </li></ul><ul><li>Hear from a real estate attorney who is an expert on Tax Deeds – risks, benefits, and protection </li></ul><ul><li>Best time to buy Tax Deeds: before the auction, at the auction or after the auction </li></ul><ul><li>Where to Buy </li></ul><ul><li>Do the property owners and these banks really lose the property at a Tax Deed sale? </li></ul>
    37. 37. <ul><li>Saturday, March 7 th at CFRI Lake Mary </li></ul>Copyright Sandra Edmond, <ul><li>How to find the Tax Lien Certificates that will give you the best return on your investment </li></ul><ul><li>Techniques for selling real estate on eBay </li></ul><ul><li>Finding Cash Buyers </li></ul><ul><li>How to get in the game with very little money </li></ul>
    38. 38. <ul><li>Saturday, March 7 th at CFRI Lake Mary </li></ul>Copyright Sandra Edmond, 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…”
    39. 39. <ul><li>Saturday, March 7 th at CFRI Lake Mary </li></ul>Copyright Sandra Edmond, Stories from the Trenches Tax Deed Hunting
    40. 40. <ul><li>Stories from the Trenches… </li></ul>Copyright Sandra Edmond, 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.”
    41. 41. <ul><li>Tax Deed Hunting </li></ul>Copyright Sandra Edmond,
    42. 42. <ul><li>Saturday, March 7 th at CFRI Lake Mary </li></ul><ul><li> </li></ul>Copyright Sandra Edmond, 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
    43. 43. <ul><li>See you on March 7 th ! </li></ul>Copyright Sandra Edmond,
    44. 44. By: Sandra Edmond Copyright Sandra Edmond,