Investing in Florida Tax Lien Certificates snd Tax Deed Sales are two of the best ways to invest in real estate.
Supercharge your investment returns at a very low risk (nothing is risk free).
Earn a return on your investment with real estate and in most cases don't worry about
the management of the properties.
Florida is one of the top states for investing in tax lien certificates. If you don't
know how to do this, and are even unsure about your ability to pull it off, join
our Tax Lien Certificate Investment Group.
I have assembled a group of individuals to leverage my efforts on profiting from
tax lien certificates and tax deed sales. This makes it easy for everyone and provides
for some diversification across properties.
A little about Florida Tax Lien Certificates and Tax Deed Sales:
The local government WILL get their property tax money so that they can continue
to operate. When property owners fail to pay their property taxes, the government
essentially facilitates "loaning" them the money. Every year, the local tax collector
will allow others to pay a property owner's taxes in the way of a Tax Lien
Certificate-"the loan". If the property owner doesn't repay the taxes "lent" to
him, the owner of the Tax Lien Certificate can request the county to sell the property
between two and seven years after the certificate was issued.
The property then is auctioned off to the highest bidder at a Tax Deed Sale. The
proceeds of the sale goes to the individual who purchased the Tax Lien Certificate
PLUS interest. If there is no bidder, then the Tax Lien Certificate holder will get the property.
In Florida, these Tax Lien Certificates are sold in a reverse auction starting at 18%
interest working downward. Last year, in Escambia County, Florida, the average Tax Lien
Certificate sold at around 15.5%.
Since the highest bidder at the Tax Deed Sale has to have ALL of the cash by the end
of the day, these properties don't typically sell for very much money relatively
speaking. That's why a buyer may end up with a $75,000 house for $7,500!
Let's do some math so you can really see the profit potential here:
Assume that you joined our Tax Lien Certificate Investment Group and you had $10,000
to invest in Certificates. Let's further assume that altogether our group invested $500,000.
For ease of computation, let's say that we executed all of our certificates at the end of
the second year via the Tax Deed Sales. Of those certificates, assume that 90% were redeemed
by the property owners at a 15.5% interest rate and 10% weren't. Again, for ease of calculation
and illustration, let's assume that the average property market value of the 10% was $50,000,
and the Tax Lien Certificate average was $1,000.
We could simply keep these properties as investments for cash flow and appreciation
in our investment group (go to our property investment group page), but for this discussion,
let's say we discount the properties for a quick sale at an average net sale of $25,000. Here's
what we get:
Cash investment returned from the 90%: $450,000
Cash from interest only on the 90%: $139,500
Property value of acquired tax deeds: $2,500,000
($500,000 inv. x 10%acquired / $1,000 certificate x $50,000 property value each)
Net sales proceeds of these deeds: $1,250,000
($500,000 inv. x 10%acquired / $1,000 certificate x $25,000 property value each)
Total cash return: $1,389,500 ($139,500 + 1,250,000)
Return on Investment (ROI): 167% !!
Even if 100% of the Tax Lien Certificates were redeemed, the group still
made a 15.5% return with minimal risks. What is your money market account or
CD's doing now, maybe 3%?
Contact me today to get started in investing in Florida
Tax Lien Certificates and Tax Deed Sales.
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