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.