In this interview, Ted answers questions about Louisiana tax deed sales, but does Louisiana sell tax deeds?
You may watch the video above, or if you prefer, read the transcript below.
The topics to be covered in “Louisiana Tax Deed Sales: What You Need to Know” are:
- Investing in Tax Liens in Louisiana
- Bidding at a Louisiana Tax Sale
- Finding a Tax Delinquent Properties for Sale List in Louisiana
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Investing in Tax Liens in Louisiana
Louisiana is a tax lien state and has a unique system for handling tax liens. Unlike most states, Louisiana uses the term “parishes” instead of counties, but the function is the same.
In Louisiana, the primary way to invest in tax liens is through tax lien certificates. These certificates are issued when property owners fail to pay their property taxes.
As an investor, you can purchase a tax certificate in Louisiana and earn a return of 12%, with a potential of an additional 5%. This is significantly higher than traditional bank returns, which typically range from 1-2% or maybe 5%.
Bidding at a Louisiana Tax Sale
Louisiana attempts to protect the property owner during the tax sale process by leaving a portion of the property to the owner. When you bid on a property, you’re bidding on the portion of the property that you’re willing to accept. For example, even though you may want 100% ownership, you might bid 99%. The lowest bidder wins.
This is different from most states, as the only other state that does this is Iowa. It’s important to understand this aspect of the process before investing in Louisiana tax liens.
Finding a Tax Delinquent Properties for Sale List in Louisiana
To invest in tax lien certificates, your first step is to find a list of properties that are for sale. The best way to do this is to contact the parish or township. They will have the most up-to-date information, and you can find the list on their website. You can also check the local newspaper.
Once you have a list, you can start looking for properties that you’re interested in.
In Louisiana, there are 64 different parishes, each with their own rules and regulations. It’s important to do your research and understand the specifics of each parish before investing.
Overall, investing in tax liens in Louisiana can be a great opportunity for investors looking for higher returns. However, it’s important to understand the unique aspects of the state’s system. With the right research and preparation, you can make informed decisions and potentially earn a generous return on your investment.
If you want to learn more about tax defaulted real estate, view more of Ted’s free videos.
Ted is the authority on the subject of tax lien and tax deed investing and has been teaching students how to buy and sell bargain real estate for over 25 years.
If you want to have a free auction list of tax defaulted properties that are currently for sale, go to TedThomas.com/freegift. See the great deals for yourself.
Read the Transcript:
Louisiana Tax Sales
Randy: Hey, thank you for joining us. We’re talking Louisiana tax deed sales, and whom am I talking with? Well, that’s Ted Thomas, America’s tax lien and tax deed authority. Ted, share with us what’s going on with Louisiana? Is it Louisiana tax deed sales or tax lien sales, or do they do both? Fill us in.
Ted: Actually it’s tax lien certificates in Louisiana. This is a big state, but they’ve only got about 4 million people living there. There aren’t a lot of people living there. They sell tax lien certificates that earn 12%, and then they have a penalty on top of that, another 5%. They’ve been doing that for decades.
Randy: I’m curious, I know we were talking about New York a second ago, and it’s not always called “counties.” Sometimes there it’s “boroughs.” What is it in Louisiana? Is it just Louisiana counties? Is that what they call them?
Ted: Actually, Louisiana came as a state as a result of the Louisiana Purchase which they owned all the way up to Minnesota in those days, but Louisiana is a state that’s a little bit different from other states. They call them “parishes” rather than counties, like New York calls the City of New York “boroughs.” It has the same function as a county. So if you were trying to find a tax lien or a tax deed, that would be where it emulated from.
Ted (cont’d): In other words, someone didn’t pay their property tax and that county would do something about it. They would say, “Look, you didn’t pay your tax. If you don’t pay your tax, we’re going to confiscate your property, or we’re going to sell a tax lien certificate.” That’s what they do in Louisiana. They sell tax lien certificates.
Randy: So what’s the pro. If somebody you know is an investor in tax liens and they’re looking at Louisiana, what’s the process there in terms of working with Louisiana and tax liens?
Ted: Louisiana has an easy process. First of all, you’d want to find a list. If you don’t know how to find a list, call the county. They’ll tell you what part of the website has that. Or, if you didn’t get it from the county, watch the newspaper. They’ll publish it, but they’re only going to publish little numbers in the newspaper. It’s better to call the county, or I’ll tell you about an auction list and interactive map later on.
Ted (cont’d): Right now, anybody who wants to get involved, starts at the county level. Remember, it’s called the “parish” there. Once you’ve got a list, you can take it from there and see if you can find something that you want to buy on that list.
Randy: What kind of returns can you get there in Louisiana on these?
Ted: You’re going to get a generous return. It’s 12%. When you compare that with a bank’s 1% to 2% or 5%, you get 12%, but can have a penalty all the way up to 17%. So you’re going to buy it and start out with about a 12% return, but it could go as high as 15%. I’m not prepared to confuse everybody with the complex math, but just understand that you can make all the way up to 17% on a certificate in Louisiana.
Randy: In Louisiana like some other states, is there a Louisiana tax sale redemption period or do you just get the property?
Ted: Okay, it’s a little different in Louisiana. I’m going to give you some inside stuff here, but I’ll send you to some place where you can get the really detailed information later. In Louisiana, they try to protect the property owner. When they’re selling a tax lien certificate, they’re going to do everything they can so the property owner can hold on. When you bid, you bid on the portion of the property that you’re willing to accept. In other words, you want 100%, but would you accept 99%?
Ted (cont’d): If you accepted 99%, you might get the bid. Another person that would take a smaller percent would get it. In other words, they want you to leave something for the property owner that’s there. I know that’s a complex thing to think about. The only other state that does that is Iowa. So you need to do more research on Louisiana. We’ll give you the basics here, but it’s a complicated process. Not complicated so you can’t learn it, but it’s complicated to explain, and I don’t want to confuse anyone.
Randy: I know you probably explained this in some of your courses that you offer, Ted, so let’s not go into it now here. If somebody is interested in finding out more about Louisiana and buying tax liens, where do they find the tax delinquent properties for sale in Louisiana? What’s the best way for them to do that?
Ted: The best way, and I’m partial, but I’m going to tell people the first place you always start is the county which they’re going to call a “parish” there. If they have townships, you want to start there. Those are the places you start. The local newspaper will also have a list of any properties that are for sale.
Ted (cont’d): I’ve created over the years an interactive map and auction calendar. It sounds complicated, but all it does is take you to any county in the United States online. There are over 3,000 counties. It will take you to all the counties, parishes or boroughs that you want to go to. You can analyze the property there. We actually give you classes so that you can research every property. The rules are different in every county and every parish.
Randy: Well, that tool sounds like you can save a heck of a lot of time, Ted, trying to find a property or get to a county website. I’m sure they’re all different, the functionality of the websites. That tool seems like it could save folks a lot of trouble whether or not they’re investing in Louisiana or any other state.
Ted: Yes, absolutely. All they have to do if they’d like to have an auction list is just register and get a free sample. You can see what an auction list looks like and find out what the dates of the auctions are in Louisiana. There are a ton of things that happen in each one of these states, like in Louisiana, you have 64 different parishes.
Ted (cont’d): When you have that many different counties, think about it. Everyone is going to have their own rules. It’s not unusual for that to happen. All the counties in the United States are just a little bit different. So just go to TedThomas.com/freegift. They’ll give you a demonstration of it. You can do that in every single county in the United States.
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Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.