High Value Property Investing

[Jonathan Cover]

I was recently at a tax auction in SC and almost all of the properties with taxable values of over 75k sold at between 70% and 125% of their tax values regardless of the taxes due and the interest earned. Often the expected interest return minus the deed stamp cost was less than 1% if the property is redeemed. This happened hundreds of times throughout the day with many bidders willing to bid 40-90x of the taxes. This county historically has an 85% redemption rate so hoping to get the property is a bit of a long shot and doesn't make much sense if you're winning dozens of properties.

How do investors like this make any money? They surely aren't doing it for the interest rates if the deeds are redeemed. Confused and curious about this.

[Josh Carr]

South Carolina has what I call over the counter liens which at this point are forfeited and have a much better pricing range.  Try the forfeited lands commission and see what you can find.  You will get a listing of the properties,  you may have to contact the county, and at this point your listing would be considered tax deeds and you can purchase them for the price of the back taxes.  The thing is, you won't have all of the properties to choose from but you just need one good one to start.