New Orleans Property Tax Lien Certificate Redeemed

New Orleans Property Tax Lien Certificate Redeemed

So, I was at New Orleans City Hall last week trying to pay a “supplemental” property tax bill (the city screwed up basically, so they tacked on more taxes due March 31) on a tax lien certificate I won at auction in September of last year, and they told me it had been redeemed. Awesome! That means I get paid a healthy return, much healthier than you can get anywhere else, with very little risk. (For you naysayers that say tax lien investing is risky, realize I wasn’t born yesterday and I only buy liens on properties that are of very high quality.)

So the big question is how long will it take me to get my money? The ever so helpful woman (I’m joking) in the Treasury office said it takes up to three months, and a friend of mine who has had several liens redeemed confirmed that two to three months is about right. Although that waters down the returns a bit, it is still hard to beat.

Apparently a very competent woman runs the tax lien redemption process, but unfortunately she works alone without help and has stacks of files to go through so it takes some time. You would think that the City of New Orleans could justify hiring people to help her, but of course the slower the process the longer they get to hold our money interest free. Oh well, such is government.

I’ll repost when it all comes through to document the time frame.

3 Responses to New Orleans Property Tax Lien Certificate Redeemed

  1. Gilbert Bennett says:

    Andy,

    I’ve had about 12 liens redeemed in the last year, and you’re right, the process takes a while, but the return is still decent. From the date of redemption – which they tell you on the redemption payoff statement they send – I’ve had it take between 2 months and 6 months to get my check in the mail from the city. And while the lady at city hall who is responsible for processing the paperwork seems to be working very hard at it, I agree that she needs more help, or better yet, we need an online redemption system just like we have to go online to buy the taxes in the first place!

    Check out my site, http://www.gbennett3.com, on 6/12/2011, I’ll be posting a starter guide for anyone interested tax lien investing in New Orleans.

  2. Sheryl says:

    I am new to purchasing tax liens properties. I would like to get more info. I have $1000.00 to invest can I do anything with that.

    • Andy says:

      Hi Sheryl,

      There are tax liens at the tax sales that are less than $1,000, so yes you can. However I would be careful not to buy the lien in an area that the chance of redemption is low unless you want to own that property.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>