TEACHABLE TAX DEED AUCTION COURSE

Introduction

Welcome to the 6^th updated reprint of our very successful tax deed training program; Practical Applications to Tax Deed Investing in Florida.

I’ve been fortunate enough to spend a good part of my adult life learning and investing in defaulted real estate. Foreclosure sales directly from the clerk of court and tax deed auction properties make-up the bulk of my real estate experience.

As you will soon learn, I have an eye for real estate investment opportunities, and I don’t hesitate to point them out to my students. This program will identify no less than 13 investment opportunities that exist in just tax certificates and tax deeds that real estate investors throughout Florida can freely capitalize on.

Please notice I mention Florida in the above paragraph. That’s because each of the opportunities, while they may also be available in other states, are thought-through and actually worked by me (in Florida only) sometime during my investment career. Should you attempt to use the ideas and investment opportunities brought to light in this training in a state other than Florida, please be sure to do your homework before investing.

With that said, please be sure to read and understand the disclaimer below that my lawyers make me include.

Disclaimer Regarding Earnings, Promises and Representations

You recognize and agree that we have made no promises, suggestions or guarantees that you have any success. If you don’t work, you won’t achieve anything. Purchasing this or any material or services from us does not insure that you will achieve any future earnings or that you will in fact earn any money. Furthermore, we have not stated or authorized any such projection, promise, or representation by others. Any and all claims or representations as to income or earnings are not to be considered as “average earnings”. There is no assurance that any prior successes or past results as to earnings or income by The Florida Real Estate Investment Center, Inc., its agents, employees, students or Rich Meyer.

Your success depends on a wide variety of factors such as your background, your work ethic, your dedication, your motivation, your desire, your business skills or practices. Therefore, we do not guarantee or imply that you will get rich, that you will do as well, or that you will have any earnings, at all.

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The Controlling Law in Your State

Florida Statute 197

This training infers that the reader has first completed at least a cursory reading of FLORIDA STATUTE CHAPTER 197. Many of the terms used in “197” are also used in this publication. A highlighted copy of the relevant paragraphs is located within the appendix of this publication.

If by chance you’re not investing in Florida, please take a moment to research the law in your state. Every state has laws established that covers the consequences and protocols covering real property and delinquent taxes. I suggest the best way to best understand what I’m teaching is for you to locate and print that law.

It might take you a little longer to relate your states law to that of Florida. But there are only a few different ways for delinquent taxes to addressed so it shouldn’t be too difficult. You can always contact me to discuss the laws in your state [email protected]

Before we begin, please go back and quickly review the section in “197” identified as “Tax Deed Application”. Or you can have a quick peek at the review below;

Florida Tax Deed Application – REVIEW

The holder of a tax certificate may make application for a tax deed after they have owned the certificate for at least two years and no longer than seven. (197.502)

Making application for a tax deed is one of the only three ways that a tax certificate can be paid off. The other two ways are - the property owner to pay off the certificate or another certificate holder to make the tax deed application.

Upon making a tax deed application the certificate holder must pay to the tax collector all amounts due for each outstanding tax certificate on the subject property as well as other fees and costs. Once all the required fees, costs and taxes are paid, the tax collector will provide a notice to the clerk of the court. (197.502)

So, if your tax certificate is at least two years old in order to make a tax deed application you must, as a part of the application, pay all other outstanding certificates including all outstanding interest due them as well as some processing and application fees. In my tax certificate training, you were urged to purchase only first year certificates (at least initially). This is one of the reasons. If you need to make a tax deed application on a 4^th year tax certificate you would be out-of-pocket for a potentially bigger number than you might like.

Older certificates can be a great source of money-making opportunities. If you think about it, there’s probably a reason these certificate holders haven’t yet filed a tax deed application……? Can you think of any ways to make some money under these circumstances? Don’t worry if the answer is no……..you will, soon. Just stay tuned.

Notices will then be prepared and delivered via certified or registered mail. The notices will be addressed to every person or entity that appears to have an interest in the property as determined through a search of the public records. (197.502)

These notices are mailed to everyone that appears on the County purchased title report. Also, the contiguous neighbors will receive notice.

The result of the search is called the title search or title report. A title company contracted by the tax collector shall provide this report showing all owners and encumbrances. This report will be the working document for any required notice. (197.512)

The opening bid on an individually owned, non-homestead certificate-holder is the total amount paid at the time of the application plus 1.5% per month. (197.542)

All of the fees and cost that were expended by the tax certificate holder during the tax deed application process will be the opening bid. No matter what interest rate is reflected upon your certificate, the tax deed applicant will receive 1.5% per month (18% per annum) from the date of the application up to and including the sale date.

On property assessed on the latest tax roll as homestead property the opening bid shall include, in addition to the amount of money required for an opening bid on non-homestead property, an amount equal to one-half of the latest assessed value of the homestead. (197.502 3c)

The intention of this “homestead add-on” was to provide “a protection” of whatever equity the homeowner had built in the years prior to defaulting on their real property tax payment. In my opinion when the legislature passed this “homestead add-on” they had their hearts in the right place. However, because of the current real estate market and the propensity of homeowners to borrow heavily against their homes; all the “add-on” has done is created additional excess funds for mortgagees to claim. This has no effect on the homeowner.

If there are no bidders at the public sale on county-held certificates, the land shall be immediately placed of the list entitled “lands available for taxes”. And may be purchase by anyone at any time prior to the land escheat to the county (3 years). (197.502)

The purchaser of lands off the “lands available for taxes” list must pay all outstanding taxes as well as the minimum bid and interest. Any money collected from the sale shall be paid to the certificate-holder. (197.502)

Investors are generally very bullish regarding south Florida real estate and are particularly savvy. If a certificate failed to garner and bids, there’s probably a good reason. Do some extra homework or stay away. This is the end of the review portion.

*It’s important to note that the practical application of this statute was changed around 2010. Before the change a property that garnered zero bids would be placed on the lands available list. However currently that same property will be “struck-off” to the certificate holder/tax deed applicant.

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This training program will open your eyes to at least 13 different ways to make money from the fact that a property owner in Florida failed to make their real property tax payment on time. Not everything discussed in each chapter may apply to all of the 13 workable items. Please be patient, everything will come together by the end, just like a good movie………. Then you get to pick what fits your personality the best!

197 Update required here.