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Freaking out on my first sale!!!2016-03-07T08:12:43+00:00

LandInvestors.com Forums **Ask A Question** Freaking out on my first sale!!!

Viewing 15 posts - 1 through 15 (of 24 total)
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  • Michel
    Participant
    Post count: 198

    Hello,

    So I just have a firm offer on a property I bought on a Tax Deed right before i got the program. I haven’t got through the whole program of DVD’s yet. I bought the 1 acre parcel 26 miles north of Orlando for $2300.00 and sold it for $7000.00. I’m sending the purchaser a purchase agreement this weekend, but nervous about the deed and how to fill it out. Can someone point me to the right DVD or comment with an example?

    NY Steve
    Participant
    Post count: 34

    Hi Michel. Firstly, congratulations on the offer. Can you tell us which county the property is in? Orange? I have some familiarity with the public records in Florida and may be able to point you to some sample recorded deeds. The package has samples for Sarasota County and Lee County on one of the data discs (folder 4 – Forms) as well. In Orange County, the Comptroller’s office records the deeds, so you might want to give them a call for further guidance. The documents can be viewed via the ‘Official Records’ link.

    NY Steve
    Participant
    Post count: 34

    The FAQ section also has some useful information about deeds. I’ve only posted a portion of it, so you should check out the rest. Again, this is for Orange County only. If it’s another county, then it may differ somewhat. In general, searching for ‘official records’ tends to get you to the right place in Florida when looking up recorded documents.

    DEED FORMS
    We do not provide deed forms. They can be purchased from many stationery stores or downloaded from on-line web sites, depending upon what you are trying to do. We strongly encourage you to consult with an attorney or legal advisor to be sure that the form you use is appropriate for your situation. Once the appropriate form is completed and ready for filing in the Official Records, it must meet the recording criteria outlined in Florida Statutes, Section 695.26. Other statutes may also apply.

    Luke Smith
    Moderator
    Post count: 1247

    @gougou2016

    Congrats, Wish I could pull some bigger numbers like that. Mine are all smaller dollar ones for now.

    You ever try uslegalforms.com
    They are cheap, easy and they actually give you the form so you can keep using it again and again unlike most paid sites that just want to keep charging you ever time you want help filling one out.

    Call the county and tell them you sold the property and need help. They will guide you even if it is full of we don’t give legal advice warnings. Ask them to help you figure out how much to pay for the forms you are sending up for recording.

    Let the learning curve begin!

    NY Steve
    Participant
    Post count: 34

    Hi Michel. Please check your private messages. I did some additional research and sent you some specifics about your case.

    Michel
    Participant
    Post count: 198

    Steve,
    Thanks for the extra effort you put together to help guide me. In your pod casts and weekly webinar you always state “we are here to help because we are in this together”, and you have proven this. I hope anybody who is new to Success Plant and wondering if the support is for real reads this. I haven’t even got half way through the program and making deals. I drove to the first three properties I acquired through tax deeds and used the drive to listen to all your podcasts.
    Luke,
    I want to also thanks you because you show the member to member support Steve talks about. I had bought another program before this and the only support I got was asking to support them more,financially.

    NY Steve
    Participant
    Post count: 34

    Hi Michel. I wish I could take credit for the course and the podcasts, but that honor belongs to Steve Butala, the course creator, and of course Jill, who is ‘famous to all of us’. Great job taking action. If you need any further guidance navigating the public records system in Florida, I’ll do my best to help you out. Glad to be of service.

    NY Steve
    Participant
    Post count: 34

    Here’s one thing to be aware of when you’re reselling properties that you’ve purchased at a tax deed sale in Florida (and most states, I believe) – if your buyer wants to get title insurance (optional), most companies won’t provide it for tax deed sale properties. There is one company that will – Tax Title Services. In the case of a smaller land purchase, the amount at risk isn’t that great, so the benefit of getting the insurance is usually outweighed by the cost. However, if your buyer insists on it, at least you have an option to present to them. I would ask them to pay for it in that scenario. The other way this is handled is much more costly and cumbersome – a quiet title action, which is basically a last-call for all prior owners to come forward to substantiate any claim they believe they have on a property. This is something you might do if you bought a house at auction and were about to sink 30k-40k into a lengthy rehab just to cover yourself. A land buyer might want to do it if they decided to do new construction on the land they bought.

    Check out these links below for more info:

    http://www.taxtitleservices.com/faqs

    Michel
    Participant
    Post count: 198

    Steve,

    I agree that Steve B and Jill have designed an awesome product. When I saw your post I dived in it so quick I thought you were Steve B. 🙂

    I’m familiar with Tax Title Services as they were recommended in the program I bought before this one. I called them up and they charge $1700 for their services. Like you stated, If i buy a house to flip I would use them. I looked at your emails and the link for recording the deed. I’m going to call Lake county office again on Monday.The one thing I’m trying to figure out is they state they need two witnesses and a notary. I’m trying to determine how i can accomplish this without driving the 3.5 hours to meet the buyer. I’m also posted on the forum a question about how people are getting payment before deeding the property.

    Jill DeWit
    Participant
    Post count: 432

    @gougou2016

    Hi Michel,

    Do you have the copy of the vesting deed? That is the last recorded deed – or the one before your new one you are creating. You can copy that or for just a few hundred $ and go through a title agency and make it really easy on yourself.

    Congrats!!! Jill

    Luke Smith
    Moderator
    Post count: 1247

    @jilldewit
    A few hundred to go through a title company? I thought I was cool getting a title company down to $500 per house I have been buying outside of this program.

    I guess land is way easier so it should be cheaper.

    Can you give some examples of title cost? The more info I have the better at negotiating I tend to be.

    Thanks. There is a lot to learn just reading about what you guys are doing!

    Michel
    Participant
    Post count: 198

    @JillDewitt
    There was a podcast(I’ve listened to them all) or one of the webinars, or in the program where Steve B. said he doesn’t do title searches for properties under 5K. I aquired this for $2300.00. I did look at TTS(Tax Title Services) because they specialize in deeds but they charge $1700. I used EasyTitleSearch.com which Luke had also used before. I wasn’t that concerned since it was a Tax deed and i did some deep drilling on the county website to check everything out before I bought it. I used a service this time which cost me $29.99 dollars but the deed was customized for Florida requirements.The company I used was deedclaim.com. I’ll keep everyone posted when I get paid.

    NY Steve
    Participant
    Post count: 34

    In Florida, the county hires a title researcher to investigate the liens on the property a few months prior to the sale (called and title report or an ownership & encumbrance report). This is so they know how to distribute any excess proceeds of the sale beyond the tax debt. The liens against the property are wiped out, as far as you (the tax deed buyer) and any future buyers are concerned. In other words, the old debt is no longer attached to the property.

    If the auction produces extra money beyond the minimum bid, that money will go to the lien holder in the first position to satisfy the previously recorded debt and then to the second position etc, but you will not have any obligation. The links I sent to you privately have that title report, if you want to learn more about the history of the property. However, it shouldn’t be necessary to do any further research on the property at this point.

    The main reason most title companies won’t insure these types of properties is because of the burden of notification requirements placed on the county prior to the sale. They have to mail all interested parties & lien holders. If they somehow fail in that duty, someone could conceivably come back and make a legal claim on the property. Tax Title Services will review that procedure and then assess the risk to determine if they want to insure it. A quiet title is similar to the county’s procedure in that all known parties are contacted and given a chance to step forward. However, in a quiet title suit, if nobody does, a judge closes the book on that claim for good pretty much, and the title becomes insurable again.

    There was some legal controversy in Florida concerning how to address county code violations, which I believe was resolved recently in favor of investors like us. I’ll post that link if I can find it. This type of thing varies by state. I believe the issue in Florida had to do with certain counties trying to enforce code liens on tax sale properties when the state statute said they couldn’t. I believe the ruling said that the state statute superceded the local statutes. Those code liens can get pretty nasty (sometimes $500/day), so it’s worth paying attention to them. In some states, they can even attach to other properties you own (called bleeding liens). In your case, there weren’t any of these anyhow, so you should be in the clear.

    NY Steve
    Participant
    Post count: 34

    Found the link about code violations in Florida and what’s known as ‘superpriority’ status (which was denied):

    https://www.floridabar.org/divcom/jn/jnjournal01.nsf/c0d731e03de9828d852574580042ae7a/18cffa168d97c17185257bd4006809cd!OpenDocument&Highlight=0,*

    Chris
    Participant
    Post count: 252

    @gougou2016 @steve67

    Quick question, does the buyer know that he will not be getting a warranty deed? And only a quit claim deed?

    That’s generally why people pay to quiet title action done or the $1700 for the Tax Title Service mentioned above (so they can sell via warranty deed).

    That’s one thing you have to factor in when buying tax deed properties, if you want to sell them near retail, you are going to have to pay the $2-$3k to get clean title.

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