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Great
Opportunity created by declining real estate prices
While we are continuing to witness
many commercial
and investment real estate price declines, we have
identified an investment vehicle that presents an
excellent and unusual opportunity in the State of
Florida. Tax liens on real estate are a very attractive
way to invest capital in real estate related investments
and have the opportunity to earn attractive returns that
are independent of the current price trend. As a result
of the price declines in real estate assets, the supply
of Real Estate Tax Certificates available for purchase
has increased significantly.
The purchase of tax certificates
allows the purchaser to receive an attractive rate of
return, which is defined by Florida State Statute, by
holding a first
lien position on each subject property. Real estate
taxes are in the first lien
position, which supersedes all debt on the property.
This is most important since a subsequent benefit of
acquiring Tax Certificates is the possibility of
acquiring the property through a foreclosure action initiated by
the jurisdictional County Clerk of Courts after a 24
month period per Florida State Statute.
Due to an unusual set of circumstances, there is a rare
opportunity to acquire extremely attractive Real Estate
Property Tax Certificates in Florida and several other
states. Participants
with a strong presence in the Florida Real Estate Tax
Certificate market include large insurance companies and
several national money center banks. Major investors
have historically included subsidiaries of JP Morgan
Chase, Wachovia Bank and Regions Bank, whom collectively
own in excess of 15,000 tax certificates in Lee County
Florida alone. In 2009, over $2 Billion of real estate
tax certificates were issued by Florida counties.
In order to be successful in tax certificate
investments, we believe thorough research, strict
discipline, and hands on management are essential.
Southwest Florida Asset Management provides those
services for our clients. |
