Welcome to Another Episode of Ask Al How.
This is the first video in my 51 part video series called Tax Sales Explained. In this video, I will discuss the basics of Florida Tax Sales.
Before we get started,
Please allow me to put a plug-in for my latest book, The Ultimate Dictionary of Real Estate Terms. If You are going to attempt Florida Tax Sales Investing, this is a MUST HAVE book! This book is the consummate real estate reference on the market today. I took great pains to make sure that it’s the biggest thing out there. 4300 terms defined over 250 pages. The closest thing that’s even similar is something like 2500 definitions. You can get it at Barnes & Noble or Amazon or 200 other retailers throughout the world for about 20 bucks
The Skinny on Florida Tax Sales
Anybody who’s been around Tax Sales has heard of Florida. It’s the state that’s always used as an example of how much money you can make. Honestly, that’s true if you do it right but the competition is also pretty stiff because it is so popular. There 67 counties in Florida and is a lien state and has a two-year redemption period. The Auctions are conducted by bidding down the interest, in Florida has not only an 18% maximum interest rate but a 5% guarantee penalty as well. That penalty is why it’s such an attractive state to investors.
I believe Florida to be one of the best states in the United States for engaging in tax lien investing. They bid down the interest in quarter-percent increments and their auctions start around May and go till June 1. They do offer over-the-counter and they even have tax deeds available as well. Now I will say this again, Florida’s popular as a result of their penalty so competition is stiff. But even with that, I give Florida a five out of five.
A FREEBIE for you.
Now what I’d like to do is give you guys a worksheet for the state of Florida. Each one of the worksheets is several pages. Each one has all the information I just mentioned plus my personal notes for each state and then links to the states laws, other applicable websites, and links to every single County and in some cases municipality as in some of the northeastern states who run their auctions by city instead of by County. Finally, each worksheet has got a map of the state showing the counties for your convenience.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.