Why 2nds come 1st?

Why not??......Many people ask me why I like to buy Non-performing second mortgages over first mortgages. Most are stuck on lien position, and the risk they feel they are exposed to. So, how do you manage that risk?? I'm sure if you were new to trading stocks (or anything else) you may feel the same way, but to a seasoned options trader it may seem easy. 

First of all, you can purchase second liens for a lower price point. With that being said, there can be more upside potential.
Next, you can spread your risk amongst many deals since they are significantly cheaper. You never have as much skin in the game on any one asset, so even if you lost money on a deal the other assets should cover you, providing that you performed your due diligence.
Third, is the "opportunity" that owning the second lien provides. It's low cost positioning that many times allows for an option on the first mortgage. All you need to do is fax over an assignment of mortgage to the bank to get a dialogue going. This can be done since you're a secured lien holder and is usually much easier than attempting a short sale.
The fourth reason for investing in seconds is the fact that there's less competition in the space. Aren't you glad most note buyers prefer firsts??