How to Get Affordable Properties in Orange County, FL Through Tax Liens & Deed Sales?

Investing in tax lien certificates or tax deeds in Orange County, Florida, can be a smart and lucrative way to enter the real estate market. With potential returns of 18-36% and property acquisitions starting much lower than their market value, it’s an appealing alternative to other investments. This article will help you understand how to effectively navigate Orange County tax deed auctions.

Understanding Tax Lien Certificates and Tax Deeds

What Are Tax Lien Certificates?

When property owners fail to pay their property taxes, the county issues tax lien certificates to recover the unpaid taxes. Investors purchase these certificates, which earn them interest until the property owner redeems the lien by paying back the taxes owed plus interest.

Example: Imagine John owes $5,000 in property taxes. Alex, an investor, buys the tax lien certificate for $5,000 at an 18% interest rate. John has two years to repay Alex $5,000 plus 18% interest annually. If John fails to pay, the county may sell the property through a tax deed auction.

What Are Tax Deeds?

A tax deed grants ownership of a property to the highest bidder at an auction after the property owner fails to pay property taxes within the redemption period. This means the investor can acquire the property, often at a price lower than its market value.

Example: After two years, if John hasn’t paid his taxes, the county auctions his property. Alex can bid on the property and potentially purchase it for a fraction of its market value.

Steps to Start Tax Lien or Tax Deed Investing in Orange County, FL

Research and Understand Local Laws

Knowing the legal framework in your target area is crucial. Each county has specific regulations for tax lien and tax deed sales. In Orange County, you must be aware of the redemption periods, interest rates, and bidding procedures.

Visit the Local Treasurer’s Website

For detailed information, visit the Orange County Tax Collector’s website:

• Orange County Tax Collector’s Office
• Tax Certificate Sale Information
• Tax Deeds Site

Check the Auction Site

Register and participate in auctions through these sites:

• Tax Certification Auction Site
• Tax Deed Auction Site

Contact the County Office

Contacting the Orange County Tax Collector’s Office or the Orange County Clerk of the Circuit Court & Comptroller is a great start.

Important Details

• Tax Sale Type: Tax Lien Certificates, Tax Deeds
• Typical Sale Date: June (for tax lien certificates), Monthly (for tax deeds)
• Redemption Period: 2 years for tax lien certificates
• Interest Rate: Up to 18%
• Bid Procedure: Bid down (for tax lien certificates), Premium bid (for tax deeds)
• Deposit: $1,000 or 10% of intended purchases for tax liens; 5% of the bid or $200 for tax deeds

Pro Tips

1. Understand Lien Survival: Most liens are wiped out in a tax deed sale, but municipal and some federal liens may remain.
2. Do Your Research: Study the property and its history before bidding.
3. Stay Informed: Keep up-to-date with auction schedules and legal changes.

Orange County, Florida Attractions and Economic Highlights

Popular Attractions

Orange County is famous for its world-class theme parks, including Walt Disney World and Universal Studios. Additionally, the county boasts beautiful parks, theatres, and historic sites.

Transportation Infrastructure

Orange County has a well-developed transportation network, including major highways, railways, and the Orlando International Airport.

Economic Development

The county’s economy is diverse, with strong sectors in tourism, technology, and agriculture.

Community Appeal

With numerous outdoor activities, entertainment options, and eco-tourism opportunities, Orange County is an attractive place for residents and visitors alike.

FAQs for Tax Liens and Tax Deeds

Q: What is the difference between a tax lien and a tax deed?

A: A tax lien is a claim on the property due to unpaid taxes, while a tax deed transfers ownership of the property after the owner fails to pay taxes.

Q: How long is the redemption period for a tax lien in Orange County?

A: The redemption period is two years.

Q: What happens if the property owner redeems the lien?

A: The investor receives their initial investment plus interest.

Q: How do I register for an auction?

A: You can register online at the Orange County RealTaxLien or RealTaxDeed websites.

Need a Hand?

For personalized assistance, get our free Tax Lien & Deed Mini Course or book a call with us to build a customized investing plan. Visit Dustin Hahn Real Estate Investing.

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