In this video we will be discussing South Carolina Tax Sales.
Something else that I’d like to mention before we start. I recently released a 259 page book called The Ultimate Dictionary of Real Estate Terms. I have scoured the Internet, worked with other authors with their books and delivered you guys a reference that has more than 4300 terms related to real estate defined. It’s available at Amazon and Barnes & Noble and about 200 other retailers around a price point of $20 but at the end of this video will show you how you can get it for free.
So let’s take a look at tax sales in this South Carolina, okay?
South Carolina Tax Sale Facts:
South Carolina has 46 counties and is a Deed state. They use a Premium Bid system any interest rate is 12%. Well it’s 12% sort of. Interest is calculated at 3% 6% 9% and 12% quarterly but the interest will never exceed the amount of bid placed on a property; which course consists of the delinquent and current taxes.
The Tax Sale is a public auction, all are held on location, and in person. You will be required to pay for bids plus deed stamps. The defaulting taxpayer has one year to redeem the property. If not redeemed, a Tax Deed will be issued to the successful bidder.
So here’s the Bad News:
The state does not have a mechanism for over-the-counter sales. By the time you do a quiet title suit to get full title to the property It takes more than two years. Finally, 3% on the low-end is not impressive to me in terms of a return on investment. For those reasons I give SOUTH CAROLINA a 2 out of 5. There may be some deals here guys but it’s going to be harder work than in other states.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.