What I try to keep in mind (as a person who is prone to discouraging thoughts) is that a lot of people want you to feel inferior, to be scared of rei, but really you know what you’re doing, and things will work out just fine for you, and in the end if this whole thing goes south and you lose money, remember people pay MUCH more than that for the same education you got, only you’ve applied what you’ve learned haha.

I am steadily owning and dominating the entire first page of Google.So if you will have that mentality of "ohh but it is so competitive" you are LITERALLY telling yourself you are inferior.

If there is a 1st lien in front of the Foreclosing lienholder, the sale will be subject to the 1st mortgage, and regardless of how much you or someone else bids on the inferior lien you will still be responsible for the entire payoff amount.   

Beyond that they are an inferior asset class.  1.  

Though old homes tend to have inferior windows.

if you are buying in a secondary location you need to know that when you sell it will impact on your selling price and also limit your market as there will be buyers that not buy in inferior locations, due to noise etc.

So, that being the case, we are structuring the deals where we put 50% cash into the down payment (70-80% LTV) but take a 2nd lien position with a 5-7 year repay period and an inferior ownership stake of 10-20%.  

Is your product inferior in the market place?

Well if the subject property is in inferior condition, (which investment properties usually are), then 5% off the lowest comp doesn't make much sense. 

There are ways around this but some are inferior and some give away control.