What do you think? Based on what I know about the town and local economy, I wouldn't be rushing at these vacant lots. Not eve sure of the best way to deal with a vacant lot. Interested to hear from people with experience on the matter.
Real Estate Junkie · New Orleans, LA · Member since 2008 · 274 posts · 165 votes
11y
For an investor, unless you are planning on building on these lots, I see no reason to buy them. That said, as an out of towner there are a few things you really need to pay close attention to.
First and foremost, you really need to have legal counsel to make sure you don't get into trouble. Orleans Parish tax sales are extremely tricky. Multitudes of people have bought into our tax sales only to find they can never gain ownership of the property. Granted this adjudication sale is supposed to offer full possession and Title Insurance, but it is questionable as to whether that will actually happen on all of them.
If you think you might consider building here, keep in mind, most of the city is Historical and you will quite possibly have some pretty strict guidelines to adhere to.
New Orleans has some serious war zones AND you can literally cross one street and be in a whole different kind of neighborhood. Do NOT buy without conferring with someone who knows where to buy and where you just shouldn't.
Some of these properties still have structures standing on them. It is true that some of them have been sitting for 20 years with tax issues. 20 years and a number of hurricanes makes for some very crappy condition. You will most likely need to call for the bulldozers fairly quickly, before the city does it. Also understand that this is SE Louisiana, be prepared to have the grass cut OFTEN.
Here are a couple of articles that may help. If you have any questions or need some help around here, feel free to hit me up.
Ruston, LA · Member since 2014 · 62 posts · 53 votes
9y
This is a really old topic but I do have a question on this same topic. I'm looking at a property on civicsource that is for the 2016 tax year, but I see where 2015 and 2014 are also unpaid. Is there any reason to pay the 2 past years? would that "speed up" the 3 year process? Is it possible someone else has already paid those? Just curious. @Adam K.@Adam S.
Investor · Sask, Sk · Member since 2017 · 85 posts · 25 votes
9y
Kimberly Jones and Adam S. totally different question but you two seem quite knowledgeable with the New Orleans market. My long term goal is to own a vacation home somewhere warm. I absolutely love everything about New Orleans and so far it's been high on my wish list. After reading this post and general lack of posts on New Orleans I wonder if this is even an area I'd be able to consider? I also have the disadvantage of the weak Canadian dollar which I don't see improving any time soon. Anyway I would really appreciate any insight, thanks.
Real Estate Junkie · New Orleans, LA · Member since 2008 · 274 posts · 165 votes
9y
Well @Leona N. it is certainly warm here! There are a few days a year that we need to turn on the heat but usually not many. I know more than a few people that are from Canada and they are all happy to be here :) Have you been to the city before?
Investor · Sask, Sk · Member since 2017 · 85 posts · 25 votes
9y
Kimberly Jones thanks for the reply and that's great to hear! Really good to know it's not out of the question and hopefully possible at some point. I was there last April on a girls trip and plan on going back with my husband in the next few years. And YES the weather is absolutely wonderful down there!
Investor · Madison, WI · Member since 2013 · 18 posts · 4 votes
9y
@Brent Causey You should be able to verify the tax information through the city's website. I find it easier to access through the assessors website (http://nolaassessor.com/) since you can search by address and it links to the property tax site.
Paying the 2014 and 2015 doesn't speed up the process, since you bid on the 2016 tax sale... The clock starts with the 2016 taxes. If it were the 2017 taxes that you were contemplating not paying, I would say it is up to you and the strategy you're pursuing whether or not you would want to pay them. However, since you're talking about the prior years taxes, which are delinquent in addition to the 2016 taxes, I'm not sure if you have that option to not pay them... I think that those additional prior taxes are part of what you're bidding on, and not sure that you can close the sale/bid without paying the full amount due (I could be wrong though...).
Investor · Indianapolis In · Member since 2013 · 47 posts · 19 votes
9y
Brent Causey the city is much more aggressive in collecting past due taxes in the last three years. In the past I've typically seen 2-3 years delinquent go to sale. This year I noticed properties with 1-2 years.
I just had a closing delayed 60 days because of the 4/17 sale. Civicsource and the city were very slow to process this year, and in discussing the issue with treasury they noticed a huge uptick in immediate redemptions.
Many of the properties on civic source have been involved in previous sales, the assessor office and city treasury have the information available on their websites to see if there were previous sales. It's not clear to me how a previous sale will cloud title, where a purchaser has a significant percentage ownership in the property. My attorneys were unclear as well.
These properties are a minefield, but if your diligent and make yourself aware of the laws you can make money.
Investor · Indianapolis In · Member since 2013 · 47 posts · 19 votes
9y
Adam S. The clock technically starts with the recording of the tax sale. The process was very slow this year, the properties I purchased at the tax auction on 4-13 were not recorded until 5-26.
Treasury will calculate from the sale date, so returns are not affected yet, but this could potentially create issues where the redemption period expires.
Thanks everyone. Although civic sources has done a good job getting the word out through their ads and billboards there seems to be a lot of red tape that requires knowledge and others experience. This thread has been a big help in understanding the process.
For the sake of more knowledge, has anyone won an adjudicate auction on civic sources? What was the process like? I'm looking to bid on a few places soon.
Rental Property Investor · Mandeville, LA · Member since 2017 · 20 posts · 19 votes
8y
I'm curious if any of the earlier commenters have updates on the past purchases of tax sale certificates / adjudicated properties in New Orleans via civicsource?
Investor · New Orleans, LA · Member since 2012 · 968 posts · 747 votes
8y
CivicSource properties are a nightmare to deal with. Best advice I can give anyone regarding CivicSource... NEVER buy a property from them!
They say you will get clear title, but that is just not true. You get title insurance from one of just a couple of companies that will insure these properties for a much higher fee than normal title insurance. The title insurance you get has a separate endorsement on it, but the problem is that most lenders will not lend on these properties.
Here is an example:
A builder I know bought a lot from CivicSource and built a spec house to sell. Once it was completed he put it on the MLS, listed with a friend of mine. They got the house under contract, but the buyer's lender would not approve the loan stating that they did not feel that title insurance and separate endorsement was sufficient. That buyer went to 2 or 3 other lenders and not one of them was able to lend on it. In order to get the property sold the builder had to track down people and pay them off to sign a quitclaim. Once the title was officially clear he was then able to sell it to a buyer that was able to get financing on it.
Investor · Lake Charles, LA · Member since 2013 · 113 posts · 36 votes
8y
update! I was contacted by a very helpful and might I add "honest" Attorney who gave me some great advice on what to do with my Tax Lien Cert. in New Orleans.. He offers a free consultation and actually steered me away from him to an option that was right for me! Just passing along!
Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
8y
Land, yes! New Orleans, not really. We have made a career buying and selling land (more than 15,000 deals) and older urban settings like New Orleans, and cities in the rust belt like Detroit (where I'm from) require full time, boots on the ground approach to investment.
The prices are so tempting, but as just about everyone else here, I recommend staying away.
There are literally thousands of other markets in which to flip land. A great place to start and learn is in Arkansas.
They have a state centralized way of getting back tax property back on the tax roles. You can pick up properties for $50.00 and resell them online at places like landandfarm and landwatch (no affiliation) without the hassle and competition of an auction.
After a couple of deals you'll know if the business sings to you. If so, I highly recommend sending unsolicited offers to owners by the ton. You will be amazed at how much unwanted property is out there.
Please set yourself up to succeed with the first few deals. I see too many newer investors make honest mistakes in the beginning of their career and bag real estate investing all together.
New Orleans, LA · Member since 2018 · 16 posts · 4 votes
8y
Thanks for the helpful info. I have been looking for a good attorney in New Orleans who deals with those nasty tax sales where the owner is deceased, and I have paid the taxes since 2006. The problem I think I'm having with getting possession is the fact that the city was sending letters to the deceased homeowner to my address. Which means that they didn't check to see if the person was deceased. Now when I try to contact the heirs no one wants to talk to me, and says that they are not giving up their property. So thanks for all the suggestions of attorneys in the area.