You're not missing much, in states like Florida where owning the tax lien cert doesn't give you a leg up on owning the property it's a crappy investment and opportunity given the low interest rate that usually attaches to them. I suppose the people who invest in them in Florida are either newbs who don't understand that they don't get dibs on the underlying property, or super conservative investors who just want their money to be tied up somewhere safe earning something a hair above what money market accounts pay. Tax lien cert investing IMO is only a good strategy in states where owning the cert gives you the opportunity to take back the property directly if the owner defaults on the payment. More on reddit.com

Good evening, You are right!!! Both Tax Liens and Tax deeds are great tools to make a decent amount of money, as long as the tool is used properly, and you have good knowledge of following the rules. And you are also right that it is NOT easy!!! There is a good amount of work behind each deal that you will find and execute. Time researching properties, liens, inspection, rehab, clear title, and the list goes on and on. One thing I can assure you of is that both Tax Lines and Tax Deeds offer great investment opportunities, and that is the fact. For anyone to be successful in purchasing tax-deed properties, he or she needs to have proper knowledge of the research process and know how to avoid the biggest mistakes people make. If you are looking for free advice, that will in most cases result in the level of result. If you will find a mentor or purchase a (well-researched) online course, I am certain that will result in a much better success rate. I've spent over $40,000 in education in between multiple mentors which is (I think) partially the reason why I never lost money on any single property I've ever purchased in Tax Deed. I believe that my results would not be the same if I would not get help from my mentors at that time. I truly want to help you along with other people who have commented on your post, but I think you are asking the wrong questions. My advice may not be the best, but if I were in your shoes, I would take a portion of the money and use it for education, instead of losing all of it on your first investment, if not properly executed. When I moved to the state of FL and had about 45K to invest, I was attending auctions weekly, and could not get any property for nearly 3 months. When I went to another state, I managed to purchase multiple properties at the first auction I attended really cheap. I think it will be extremely difficult to work in FL with 10K. Perhaps you can find land, if that. No one can answer what your bid should be without knowing the numbers and seeing the property. Once you are the highest bidder, you will need to get insurance on the property which also became very challenging in recent years as many insurance companies left the state, unless you will have a fairly new roof, which is nearly impossible with your budget. The clear title may take about 30 to 40 days and will cost you about $2,500 maybe less. You will need to conduct full analysis, research on the property, determine the FMV of the property, and look at other properties similar to the one you are looking at bidding on. You will need to search for any liens on the property on the county's website. In the state of FL yes, once you win the bid, AND you pay the full amount at the county, you just become an owner of that property and you can do whatever you wish with the property. It depends on multiple factors; you may sell if 5 days after you become an owner if you find a buyer that will purchase it without a quite title. If you will decide to clear title it may take you about 30 to 40 days. I can't believe I spent so much time responding to this post, but I really want you to be successful. Make sure you are fully educated on the process before spending any money on your first property. Good luck and feel free to reach out with any questions, Mark More on reddit.com

The simple way I understand it is this: The bidders are bidding down the interest rate paid for delinquent property taxes owed by the home/property owner in question. Starts at 18% interest and goes down with each bid until you hit a point where no one else bids, setting the effective repayment rate by whoever owes the taxes. You are providing a loan for tax repayment. You do not get the deed until after sufficient time has passed and repayment of the tax lien has not been fulfilled. You do not get the deed until after default on repayment, not at time of tax lien purchase. Both will not be "good to go" because a tax lien is not an outright purchase of a property as you are wrongfully assuming here, because the person that owes tax is being given a chance to make good on their tax debt obligation before forfeiture proceedings ensue. After which, if there has not been a repayment, injunction, extension, or some other form of legal hijinks, then you might get the house/property in question. Also, don't ever expect to receive the home/property in the same condition as when you had originally bid on the tax lien. More on reddit.com

As has been mentioned elsewhere, tax deed properties can be complicated and will vary from state to state. Typically, the taxing authority/municipality follows it's laws, files a lien against the property for taxes owed, and will generally take rights to deed on the property. Make sure you understand the differences between a "tax lien" and a "tax deed" sale. At auction, you will typically pay, and take possession of the property via a quit claim or property transfer affidavit, usually within 24-48 hours. You may, or may not have specific restrictions as to access, personal contents, or people still actually at the property. You also may, or may have assumed specific issues with the property. This will give you rights to the deed, but, this does not guarantee that there may not also be competing claims on the property. You will want to consult with a real estate lawyer that is fluent in this type of transaction, in your municipality, county, or state, and will probably need to initiate an action of quiet title. Just because you have rights to the deed, this does not give you a "clean" title to the property. A quit claim deed is not a warranty deed. At a minimum, you will want to go through the quiet title action, and engage with a title company to get to a warranty deed before doing anything to the property other than cleaning and securing it. The last thing you want to do is to spend money on a remodel or on development work, only to find out that the property title has some skeletons in the closet. You will also not be able to use the property as loan collateral or sell it if you do not have a warranty deed on it as that would be considered a non-insurable action for title insurance. Also, depending on the property and your usage (I tend towards commercial/industrial) you will want to get an ALTA survey (or boundaries at least), a Phase I survey, and potentially a geotechnical evaluation. I had a friend that purchased a residential parcel on tax auction, only to find out that a prior owner had been disposing of his used motor oil in the back (for decades). Some other considerations; go to your local municipality and get any history of ordinance violations that the property may have. Check on the zoning (again, I know someone that purchased a residential home to rent/flip, only to find out that the underlying zoning was industrial and that the change in ownership un-grandfathered it's use as residential). Check on any permits pulled for the property; indications of unpermitted work done can be an issue. More on reddit.com