Mechanic's Lien investing

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Hello everyone,

I'm looking to get some opinions on a private lending strategy I'm considering. I'd like to hear what people think and if they have any tips or horror stories that could help me out.

I plan on investing in Mechanic's Liens. The idea is that I would purchase mechanic's liens from contractors at a discount and then work out a payment plan with the homeowner.

The reason for buying at a discount is that mechanic's liens are typically time-bound. If the contractor doesn't initiate foreclosure on the homeowner within a certain time frame, the lien expires. Generally (and this is my assumption, please correct me if I'm wrong), a contractor doesn't want to go to the effort to chase down the homeowner for payment. They would rather get onto the next job.

One of the private lending courses I took gave me the technical know-how to make this kind of deal happen. And of course the instructor is saying "this works, it's great" but what do you expect from the instructor. In any case, I am interested to learn what kind of experience is out there.

Any contractors, rehabbers, private lenders willing to share their experience in this area?

Thanks a lot
Paul