I was quite intrigued with his technique and will someday incorporate it into my own REI. You have, in the past posted, about how difficult it is investing in a hot markets like coastal California.
Do you think JT-IN’s defaulted note buying technique would work in coastal California? I would speculate that the answer is NO or it depends. I figured that lien holders and lenders realized how hot the California market is and would believe that they would most likely be made whole at the sheriff’s sale. Therefore unlikey to discount their notes.
I think it would work in Coastal CA. I will be teaching a class on foreclosure investing at the San Fran Learning Annex next Wednesday night and will mention this approach as an approach that might work for investors.
Now, because of the high rates of appreciation in the past few years, there may be many lenders who will not well for a discount, feeling that they can do something else.
However, private party second holders might be a the target of choice. Unless they are sophisticated, have plenty of money, or a good attorney, they may not know what to do and may want to get out of the mess.