tax deeds in florida 080310

A C K E R I N V E S T M E N T S L L C

TAX DEEDS IN FLORIDA

BASICS

• Tax Deed Sales in Florida have no period ofredemption once full payment is made.

• Only Government Liens Survive

• Purchaser of the tax deed must pay fully within 24hours.

• Back taxes for the current year are not included inthe Tax deed sale and must be paid in addition toyour bid.

HOW DO YOU BUY THESE PROPERTIES

• Each county advertises them online and/or innewspapers

• They are then sold via auction• The majority are sold at the local county courthouse

• Some auctions are online and require $200/propertydeposits to be placed with the county before bidding

• Payment in full is due the next day

RISKS

• As with all real estate, improper research of theproperty to be purchased will result in poorinvestments.

• To mitigate risk• Research all liens for current and previous owner

• Look for governmental liens.

• IRS Tax Liens

• City Sewer, Water or Code violations

• Determine if current owner bought the property with a GeneralWarranty deed.

• Research the current comps

• View the property inside and out if possible.

TITLE CONVEYANCE

• Title of property is clouded and uninsurable by aTitle Company until it is unclouded• Takes 45 to 60 days to uncloud

• Cost approximately $1500

• Property can be sold by Quit Claim before that point

Clouded Title –Because the property was sold by the government and not by the previous owner, theproperty is considered clouded and must be “unclouded” in court.

SALES APPROACH

• Quit Claim the property if it has minimal profit• Minimal profit is between 10 to 20%

• If the property is to be rehabbed then initiate the“unclouding” of the title• Profit on these properties should be over 40%

EXAMPLES (PROPERTIES SOLD)

Cert #Tax SaleDate

MinimumBid Final Bid County Sold Date Sold Difference

144417-07 28-Jan-10 $33,686.90 $129,050.00Hillsborough $257,203.00 1-Apr-10 $128,153.00

144828-07 21-Jan-10 $16,968.15 $61,000.00Hillsborough $130,000.00 15-Jun-10 $69,000.00

145860-07 25-Feb-10 $13,274.70 $39,800.00Hillsborough $47,500.00 10-Jun-10 $7,700.00

143003-07 21-Jan-10 $7,510.01 $25,000.00Hillsborough $40,000.00 28-Apr-10 $15,000.00

7690 27-Jan-10 $11,760.39 $60,000.00Pinellas $129,900.00 30-Apr-10 $69,900.00

12791 24-Feb-10 $11,315.07 $35,560.00 Pinellas $65,000.00 8-Jul-10 $29,440..00

PROPERTIES(HELD FOR INVESTMENT)

CertificateNumber Sale Date Base Bid High Bid

2009 TaxableValue Rental Value Comments

151498-07 6-May-10 $40,423.86 $131,000.00 $296,015.00$9,600.00/

month16 unitsbuilt in 1987

132099-07 24-Jun-10 $89,848.74 $117,300.00 $180,675.00 Condo

131132-07 24-Jun-10 $16,857.65 $41,500.00 $58,276.00 Condo

150462-07 13-May-10 $13,874.31 $41,000.00 $95,570.00previous value260000

145628-07 11-Mar-10 $10,243.88 $36,100.00 $72,483.00 Condo

143133-07 4-Mar-10 $10,154.50 $30,110.00 $84,430.00 Condo

Note: The taxable value is important because after 3 months youshould be able to get a loan for 70% of the appraised value. InFlorida that value is often quite similar to the taxable value.

IN CONCLUSION

• There are several ways to make money on Taxdeeds.• Buy and sell higher end properties for high return

• Buy and rent moderately priced properties

• Quit Claim properties for moderate return.

• You don’t need to be in FL to buy.• You can invest virtually by registering with each county and

depositing 200/property

• You may then use a FL real estate agent or FL Attorney tosell the property.

THE END

If you have any further questions or would prefer toinvest directly with Acker Investments LLC.

Please contact

Shawn Acker

Managing Member

sacker@ackerinvestments.com

813-421-0734