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The Tax Deed Newsletter
Top 3 Mistakes Tax Deed / Tax Lien Investors Make May 2009
In This Issue

About the Author

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Sandra Edmond is a full time Investor.  She was most recently included in a front page article in the Orlando Business Journal  due to her experience in the area of tax delinquent properties. She was also in a front page article of the Seminole Woman magazine  Edmond is known primarily for buying and selling land as well as homes.  Prior to Real Estate, Sandra Edmond was a Television News Reporter and Fill in Anchor.  She graduated from UCF and spent 3 years on the Central Florida Realty Investors Association Board of Directors.

 

You can reach Sandra Edmond at 407.310.4007. 

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QueenOfTaxDeeds.com

On the site: Video from real Tax Deeds auctions including the house in this newsletter that sold for $31,000! You can also watch video tutorials that show you how to navigate various county websites, links to tax lists across the state and country.

In your Own Words… 
"YOU ARE AWESOME,  I TRULY ENJOYED YOUR TAX DEED SEMINAR.  IT'S ONE OF THE BEST I'VE BEEN TO FROM THE LOCALS. PROBABLY THE LARGEST TURN OUT FOR A MEETING CFRI OR IRC  HAVE HAD IN THE EVENING. THIS WAS LIKE ONE OF THE SATURDAY SEMINARS FROM THE NATIONAL  GURU'S."
—Brenda D.
   

"Great seminar! Learned a lot. You did a great presentation!" 

—Elizabeth B.

 "Your class was GREAT! I am really interested in the entire process and went to a sale recently to see how things are handled. Thanks immensely for sharing your knowledge and being willing to do so! You were fabulous!"
— Denise M. 
I enjoyed your presentation about tax deeds last night and learned a lot of new information.  I am very excited about getting started in investing in tax deeds. 
—Bridget J.
"Enjoyed the class.  You are very knowledgeable"
—Peter S.


Past Issues of the Tax Deed Newsletter are available here.

   I hope this Newsletter was informative to you and you will choose to subscribe to it.  If there is something you'd like me to cover about Tax Deeds be sure to drop me an email.  Don't forget to click on the "Join the Email List" in the column to the left or send us an email sedmond@buyingtaxdeeds.com

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Upcoming Sales Calendar…
Keep track of all the Tax Deeds Sales in one Place. Follow here to the Tax Deed Calendar. 

Dear Sandra, 

Most people know very little about Tax Deed Investing.  Banks and Realtors have no incentive to tell you about it and most savvy investors won't tell the competition what you need to be successfull investing in Tax Deeds.  For weeks, you've been asking me for more information on Tax Deeds.  As most of you know, I Love Tax Deeds.  I have been investing in Tax Deeds for about 4 years. 

 The Tax Deed Newsletter will keep you informed about Tax Deeds.  For those of you that attended the Investing in Tax Deeds class, this Newsletter will build on what you learned there.  For those brand new to Tax Deeds this Newsletter will provide you with basics on Tax Deeds.  We will be using real life examples.  You will learn how I got started and the best way you can get started investing in Tax Deeds. 

You can purchase Tax Deeds for .30 cents on the Dollar!  That means you can purchase a $100,000 property for $30,000.  You can see how lucartive they can be.  But as lucrative as the prospects may be, there can be problems you need to learn how to avoid.  We'll discuss those further.

With that said, we'll also be correcting some of the misinformation that is out there about Tax Deeds. 

  • Tax Deeds and Tax Certificates are not the same thing. Not so! One gives you possesion of the property… that means you own it.  The other gives you a claim on the lien… that means you don't own it.
  • Clear Title – Many people think that you can't get clear title with a Tax Deed. FALSE.  Once you have a Quiet Title done, your Tax Deed does have clear title and the process makes it one of the most perfect titles.
  Read on to learn the who, what, where, when and how of Tax Deeds.  Don't forget to Join Our Mailing list (the button to the left and bottom of this article).

$10,000 Tax Deed House Deal


 kitchen of $10k houseI was so inspired to hear the excitement over the phone as one of my Tax Deed students told me about her first Tax Deed purchase.  Christa purchased the home in May for $10,000.  It's a 2 bed / 1 ba Block house in Central Florida. View this link, I bet these are not pictures you expected to see.
 

Christa In Her Own Words: "What I got most out of Sandra's course is that I learned in much more detail about how to do my due diligence on a property.  I didn't know as much as I thought I did.  This is valuable information whether you are purchasing a tax deed or any other property.  My biggest fear in working with tax deeds was the unknown: I was always afraid I missed something before I made it to the auction because I don't get an inspection period after I bid.  It was great to be able to contact Sandra so I could run through my research with her before the big day.  This helped me go to the auction with confidence and I ended up walking out with a great deal!"
  Christa plans to list it for sale at $39k, she's looking to net $30k after commissions, 2008 taxes, and the utility lien ($800).  If it doesn't sell, she'll owner finance it.  She expects to profit around $15k which is not bad for a $10k investment.  It's TAX FREE because she bought it in her Self-Directed IRA.  It's also a 150% ROI (Return on Investment) if she sells within a year!!!  That's works for her, will that work for you? 

Read more about her deal on the QOTD Blog.


 

Can't Do the Research Yourself? 
If you are tired of spending hours looking up the information yourself, and just need to know which properties are worth buying then try a FREE TRIAL of this Tax Deed Data Service.
  • Property address
  • Owners names
  • Owner's mailing address
  • Property information
  • Pictures of the home (if available)
  • Aerial views (if available)
  • Property Values

Once you see how much information is at your fingertips, you will never have to second guess your research skills again or waist hours on the computer to only find out the property is not worth buying.  This Data Service will allow you to quickly and easily make a decision.  After the trial period ends, it will only cost $39.99 per month per month for up to 30 reports.  Each report covers one auction of your choosing.  The reports contain information about each property being sold at the sale.  That's only $39.00 per month. 

Tax Deeds & Clear Title

     A Tax Deed Sale is a public auction where property is sold to the highest bidder in order to recover delinquent property taxes.  When you purchase a Tax Deed you are buying the property, unlike in a Tax lien Certificate Sale.  In a Tax Lien Certificate Sale you are buying a lien on the property and for your investment the county will pay you interest on the price it cost you.  A Tax Deed gives you ownership to the property.  You get the Deed in a Tax Deed Auction – that's why the word Deed is in the name.
 
Once the property goes to sale the Tax Deed Auction will wipe out all junior liens except certain liens.  When I say wiped out, I mean extinguished, cleared away and no longer a factor.  

 

Clear Title
Clear title means marketable title.  Banks will not loan money on property if the title is not cleared and most buyers will not buy a property if the title is not clear.  There are 4 ways to get clear title after you purchase a Tax Deed.  One method is by filing a Quiet Title Suit.  When I first heard about the Quiet Title Suits, I was very intimidated.  It's a lawsuit and I didn't really want to get involved in a lawsuit.  But turns out it's not the big bad lawsuit that once intimidated me, it's really just paperwork that the attorney files on your behalf.  Once you do one, you will never fear it again. 
 
Quiet Title Suit
The Quiet TitleSuit is the court's way of verifying that the County Clerk correctly administered the Tax Deed Sale.  During the Quiet Title the court verifies that all property owners and lien holders were properly notified.  If all goes well it can take 3 months, but there have been some that are more complicated and can take up to 6 months – but that's rare.  This is one step you do not want to take lightly.  You want to pick the right attorney to do a Quiet Title.  That means you pick an attorney that has experience doing Quiet Titles.
 
In the next issue I will tell you the best ways to find an attorney even in a city that you've never purchased property in before.We will also discuss some other issues you should be aware when doing a Quiet Title.
 
 
Buying a Tax deed can get exciting; bidding at the auction can get your competitive juices flowing.  But have a plan!  Know what is the most you are willing to spend on each property and Don't Go Over It.  Look at each property and study the files before you bid on the property.  
 

Top 3 Mistakes Tax Deed / Tax Lien Investors Make 

 1. Give Up Too Quickly.  You just read about Christa's $10k house.  What you don't know was that this was not the first time she bid at the auction.  About a month before this purchase, Christa lost bids on about 3 properties. She also had to overcome some obstacles involving the use of her self-directed IRA to buy at the courthouse.  I worked with Christa over the phone for a couple of weeks after she bought my Tax Deed Home Study course so I knew exactly what she was experiencing and I advised her on what to do.  She had spent the day with me in my all day training class on Tax Deeds.  "I think what really helped me was the hands on work we did in the class.  Being shown what to look for in the files gave me the confidence to do it on my own", says Christa.  She also used my forms to keep track of the information she needed to collect.  And when the time was right… they say "Luck is when opportunity meets preparation."  So when the time was right, 'she pulled the trigger.'     

2.  They Don't Do Their Homework.  This is the other side of that ugly coin that has 'Paralyses of Analysis' on the opposite end.  I don't know which is worse; In the long run you loose money with both.  As much as I 'preach' to investors to make sure you know what you are bidding on, I still come across people who jump in head first and bid on a piece of property without doing their homework.  One of them attended my class and this person was so excited about doing a deal that this investor neglected to do the proper tax deed due diligence and is now banned from bidding in 2 counties for not paying for the properties won at the auction.  Which resulted in forfeiting $400 worth of auction deposits.  This is the same person who tried to buy tax deeds without the home study course.  I just haven't had the heart to tell this investor, the home study course would have cost less than the $400 lost in auction deposits not to mention saved the investor the humiliation and anxiety those deals caused.       

3. They Don't Know How to Bid.   Whether it is a Tax Lien or a Tax Deed auction, most municipalities require that you compete for the properties by bidding.  The problem many people have is their bids are too high. You know the story about David and Goliath.  Brains over Brawn (or cash in this case).  The way I bid is how I taught Christa to bid in her auctions.  The person willing to pay the most at the sale does not always win.  You have to learn how to step your game up.  Christa carefully timed her bids out based on the climate in the room and the fact that the clerk breezed through the sale only enhanced her chances.

Sincerely,


Sandra Edmond,

vp – Ardnas, Inc

407.310.4007

This email was sent to sedmond2@hotmail.com by sedmond2@hotmail.com |  

Ardnas, Inc | PO Box 677521 | Orlando | FL | 32867

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