Tax Deed Vesting – How It Can Cost You Big Time..

Improper tax deed vesting (the legal assignment of title and ownership of a property) is a common mistake. Scenarios can include everything from invalid LLC’s to misspelled names. Take a few minutes to save yourself thousands of dollars in legal fees and months of time by getting this right from the start!

First, if the clerk issues a wrongly assigned deed due to their error, then you can likely amend this with a Corrective Deed. Check out more about scrivener’s errors and how to deal with them here!

More complicated situations arise when a Corrective Deed can’t be issued. If you’re vesting a property in the name of an entity such as your LLC or Trust (as we recommend here), be doubly sure that you’re using the same entity name as is registered with their respective State. Moreover, check that the entity is valid and current with registration at time of vesting.

Similarly, if you’re purchasing the property via Quit Claim Deed, be sure that the selling entity is valid with its respective State (Sunbiz records cover Florida) at the time of sale. Even further, make sure that this is the same entity that bought it in the transaction prior. Running afoul of any of these scenarios can lead to the deed being invalid, or even belonging to an entirely different entity than your own!

When bidding online, make sure that the name given on your account is exactly that of the entity in which you’d like to vest the property, and include the state of incorporation.  For example, you should register as “ABC Tax Deed Investment Company, a Florida Corporation” or ABC Tax Deed Investments, LLC, A Delaware limited liability company”. The winning bidder will have this name automatically applied to the deed, so be prepared in advance!

If there is an error, you may need to file a Quiet Title Action or Declaratory Action, which is a lawsuit filed so a judge can sign an order correcting the error and putting the property back into your correct entity name.

Again, make sure you’re approaching every vesting cautiously so that you don’t wind up in trouble because of a simple oversight. Double check now so you’re not writing checks later!

At Cleartosell, we are continually developing unique ways to save tax deed investors both time and money. Visit our Cleartosell YouTube channel to see our principal attorney address related topics of interest in our ongoing educational video series!

To read more of our original content, or to place your order, go to —

www.cleartosell.com, create an account, and get started today!

 

June 15, 2018

Posted In: Attorneys, Tax-Deed

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How We Help Buyers, too!

Far too often we hear about someone who was all set to buy a property, then found out that it was acquired through Tax Deed auction some time ago, and the sale is halted. The tax deed investor never handled things on their end, and now they’re looking at a lengthy quiet title action before the property can be sold with a warranty deed and free of attaching legal issues. As the buyer of said property, you don’t want to wait months for a quiet title suit, so you’ll likely walk away from a deal that you really wanted, in the first place…

Or, you could call us and potentially have a clear title in 20 business days, ready for sale just as you had planned. Can you, as the buyer, initiate our services? Of course! The Certificate we provide may be vested in the owner’s name, but below are a couple options of how you can go about putting us to work for you, and getting the property you want.

First, and most obviously, you can put the Tax Deed owner in touch with us, showing them an easy way to get this property sold for profit quickly. You can remind them not only of how quickly we can get it done for them, but that they’re not bound to the terms of potentially a lengthy suit and expensive legal fees.

If the seller seems hesitant, or doesn’t want to do it themselves, here’s another option – once both parties have agreed to use our services, the current owner can pay for the certification process, and make that cost part of the home’s sales price, to be paid at closing.

This ensures that you don’t lose out on any funds if the owner decides the deal is off, and also that the owner is reimbursed at closing for anything paid up front. You get the property you want, the owner doesn’t mind paying for our services because they’ll end up being reimbursed, and everyone wins.

At Cleartosell, we are continually developing unique ways to save tax deed investors both time and money. Visit our Cleartosell YouTube channel to see our principal attorney address related topics of interest in our ongoing educational video series: Tax Deed Law Made Simple.

To read more of our original content, or to place your order, go to —

www.cleartosell.com, create an account, and get started today!

 

The cleartosell.com team.

April 30, 2018

Posted In: Capital, Profits, Tax-Deed

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There Has Never Been a Better Time to Own Rental Property!

 

Buying at Tax Deed auction can be a cheap and effective way of acquiring Rental Income properties. Rental Income guarantees steady returns, while still allowing you to hold the asset for future sale. Given the current state and trend of the market, there has never been a better time to own a Rental Income property, and we’ll detail the reasons behind that.

With the passage of the recent tax bill, taxes on pass-through income have dropped significantly – in some cases to almost half. Whether you own the property under your own name, an LLC, or a trust (see our last post on the benefits of these entities here!), rental property income qualifies for this low tax rate, providing that the property is separate from your primary residence.

The tax bill only furthers the benefits to landlords by increasing the individual standard deduction. This allows renters to achieve a higher tax return, reducing the allure of tax benefits of home ownership vs. renting. Less incentive to purchase a home means that rental properties will see a larger and more willing audience, when they’re available.

Of course, this doesn’t mean bad news for the sale of the property. The housing market is currently seeing home prices rise as availability becomes more and more scarce. When it is time to sell your property, you’ll likely see a market with ample pricing available. As purchasers begin to save more with the above-mentioned standard deduction, history shows that down payments will increase and need for strict appraisals will begin to decrease.

The new bill even allows for more deductions from money spent on improving these rental income properties, meaning you can invest a little now, and see the returns steadily come in, while still taking advantage of these generous tax deductions.

Once you’ve purchased your property at tax deed auction, don’t hesitate to give us a call. We’ll clear any conditions relating to the tax deed sale in 20 days, meaning you can have the place ready for renters and steady, record income in record time.

At Cleartosell, we are continually developing unique ways to save tax deed investors both time and money. Visit our Cleartosell YouTube channel to see our principal attorney address related topics of interest in our ongoing educational video series: Tax Deed Law Made Simple.

To read more of our original content, or to place your order, go to —

www.cleartosell.com, create an account, and get started today!

March 28, 2018

Posted In: Auctions, Capital, Investing, Profits

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Are You an Investor Without a Trust or Other Business Entity? You Shouldn’t Be.

If you’re buying properties at auction, you run the risk of inviting costly lawsuits for each and every property you purchase, from something as simple as a dispute over property lines to potentially attaching liens. Even if these lawsuits are frivolous and without foundation, the cost involved in defending yourself is prohibitive and damaging.

The benefits to having a trust or LLC in which to own your tax deed properties are multiple:

  • Discourage potential lawsuits and risks by concealing the identities of the equity principles (you and/or other controlling members) involved.
  • Both a trust and LLC allow anonymity and leverage during negotiations.
    • Wealthy individuals often close transactions through trusts in order to mask their identity.
    • If you’re buying/selling multiple properties in a given area, doing so through separate trusts can allow you to retain leverage by not tipping off potential buyers/sellers (Walt Disney bought up land for Disney World this way!).
  • Both Trusts and LLCs provide easy transference of equitable interests, and if written correctly, can avoid probate or Florida transfer taxes upon the death of a principal.

There are advantages to not closing transactions in your personal name, so consider setting up a trust or an LLC to provide additional layers of security!

Have a question? Call us today at our toll free number 1(855) 680-4908 to set up a complimentary 15-minute consultation with one of our Cleartosell staff counsel, or email info@cleartosell.com and mention this article!

At Cleartosell, we are continually developing unique ways to save tax deed investors both time and money. Visit our Cleartosell YouTube channel to see our principal attorney address related topics of interest in our ongoing educational video series: Tax Deed Law Made Simple.

To read more of our original content, or to place your order, go to —

www.cleartosell.com, create an account, and get started today!

February 26, 2018

Posted In: Attorneys, Tax-Deed, Trusts

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