Preparing for the 2012 Florida Tax Lien Auction

Preparing for the 2012 Florida Tax Lien Auction
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It’s never too early to start to prepare for the biggest tax lien auction in the U.S. — Florida.  The 2012 Florida tax lien auction is the largest by volume with almost $2 Billion in tax liens available for tax lien investors to purchase.  It’s also the easiest state to buy liens in, for anyone.  Most of the counties are online through a couple online tax auction houses.

We’ve discussed how to do tax lien due diligence in a previous article, but at the two month point, there are just too many properties to go thru to effectively do any due diligence.  My focus at this point is on deciding on my strategy, gathering funds to invest, and finding information sources to make my selection of liens easier.

1. Deciding a Strategy

What liens to focus on is a matter of your goals.  Do you want to trade a lower return for a safe investment?  Are you looking for a way to gain real estate for great prices?  Or, do you want a higher yield with a little more risk but not really interested in dealing with taking a tax deed?  Each outcome requires a different auction strategy which I’ll cover in my next article.


2. Gathering Funds to Invest

Unless you’re one of the lucky ones to have plenty of cash on-hand of your own to invest, you are probably always looking for more capital to put into the tax lien market.  If you’re looking for investors, I’ve found that a clearly written outline of your investment plan, expected returns, and required capital is the basis for gathering interest in investing.  Once you have your plan written out, send it to everyone you know–family, friends, business associates.  Even if you don’t think so-and-so would want to invest in something, they may forward your plan to someone who does.

3. Finding Information Sources

With tens and tens of thousand of liens available for purchase in Florida, you need a way to limit the number of properties you’re looking at to those that fall within your strategy and geographic areas.  The county property appraisers have most of the information you’ll need to determine baseline market values, property types, and links to tax records.

2 Responses to “Preparing for the 2012 Florida Tax Lien Auction”

  1. […] Florida tax certificates should be at the top of everyone’s list for many reasons: the ease of buying liens at the online auctions, the laws and processing of tax payments are very investor friendly and the online information from assessment data to tax data is very current and accurate compared to other states.  Florida sets the bar for all the other states that sell their property taxes and will set the trend going in the future.  The main downside that there is a lot of competition out there the bring rates down quite a bit—but with Florida being the largest tax certificate market out there, you can usually find a niche to buy at higher rates. […]

  2. […] Florida tax certificates should be at the top of everyone’s list for many reasons: the ease of buying liens at the online auctions, the laws and processing of tax payments are very investor friendly and the online information from assessment data to tax data is very current and accurate compared to other states.  Florida sets the bar for all the other states that sell their property taxes and will set the trend going in the future.  The main downside that there is a lot of competition out there the bring rates down quite a bit—but with Florida being the largest tax certificate market out there, you can usually find a niche to buy at higher rates. […]

  3. […] of these liens redeem within a few months.  Let’s say you own a Florida tax lien certificate that redeemed in one month.  Congrats!  You just earned a whopping […]

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