In the hopes of striking it rich, those investing in real estate hope they don't strike out.
Myrtle Beach resident Andi Blume works for Quest Property Associates out of Missouri, investing her and her clients money at delinquent tax auctions around the country.
"I've done actions like this in Arizona, and along the Gulf Coast," said Blume.
This is her 14th year at the Horry County delinquency tax sale in Conway, and it's turned her a profit before.
"We purchased one for $25,000, and we closed last week for $120,000. That's a good chunk of change for an investor."
More than 100 people crammed into a conference room at the Horry County Government and Justice Center to buy land up for auction because the property owners failed to pay taxes, making it a prime target for investors looking to buy land on the cheap.
"We'll get about $3.8 million in delinquent taxes today," said Horry County Treasurer Roddy Dickinson.
But very seldom do bidders get the land they bid for at the auction.
"Nine times out of ten, they're going to redeem. But if you do get that one or two, you're doing well," said Blume.
"The delinquent tax payer has one year to redeem this property," said Dickinson. To redeem the property, the owner must pay all taxes, penalties and a $300 title search fee. "If not, it goes to the bidder and the delinquent tax payer gets the difference of the bid."
If a property is redeemed, the successful bidder will receive a refund for the bid amount plus interest on the bid amount at the rate of 3% the first quarter, 6% the second quarter, 9% the third quarter and 12% the final quarter.
"It's a win-win," said Blume. "If you get the property, great. If you don't, you're still earning the interest."
But while it may sound like easy money, it's just as easy to lose if you make a mistake on a bid, said Dickinson. "It's a safe way with tax sales, but there are pitfalls. You have to be very familiar with what you're buying."
Research and studying property is how Blume makes sure mistakes don't happen. "I probably spend about a months worth of time just researching each and every parcel, every one of them."
