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The Playbook

Real Estate Strategies

Judy Dutton

theplaybookmb.com

Although homes in Fresno, CA, sell for $389,954 on average, Jimmy Fuentes just snagged a three-bedroom ranch there for $185,000. His secret for finding a deal? It was a foreclosure, which was hiding a nasty surprise inside.

“Water damage in the primary bathroom was extreme but was not visible from the street,” Fuentes says, adding that typically with foreclosures, “You are purchasing blindly.”

Fuentes spent $22,000 on repairs and turned it into a rental property. “It’s renting for $2,100 per month, with a 12% annual yield on investment,” he says. “In addition to the 34% price cut below market value, foreclosures do not require a lengthy price negotiation process. Cash deals are sealed in days, not weeks.”

However, Fuentes (who has purchased several foreclosures and helped hundreds do so as a 

) warns, “foreclosure investing is a game that demands steel nerve.”

 in July, an 11% increase from June and a 13% rise from July 2024, according to data analytics firm ATTOM. CEO Rob Barber noted, “The steady climb in filings suggests growing pressure in some markets.”

Foreclosures often end up in the hands of real estate investors because these properties are frequently riddled with risks that regular homebuyers can’t stomach.

“It’s 50% preparation, 50% balls, and not for the lighthearted,” explains Des Moines, IA-based investor 

. Foreclosures tend to be in a dilapidated state, and since banks are often eager to unload these homes quickly at auction, this may leave mere days to kick the tires. “You rarely have a chance for an interior inspection,” Naig explains. “So you have to take an educated guess and a calculated risk.”

One of Naig’s most memorable foreclosure gambles was a three-bedroom in Beaverdale, IA, that sat empty for two years. It was falling apart, with bursting pipes, ancient electrical, and a half-collapsed garage. “I bought it for $78,000, way below market value, but I needed another $45,000 for repairs,” he recalls. “Within five months, the property was completely renovated and sold for $175,000.”

Some foreclosures may even have residents who refuse to budge.

“The last foreclosure I purchased for $307,000 was a home in Miami that came with a squatter,” recalls Florida investor 

. “I evicted the squatter once, and they came back again! After that, I put plywood in all the windows and sold it as-is to another investor for $395,000.”

The foreclosure auction process can also be intimidating for the uninitiated.

“Auctions run the gamut from a low-key annual county meeting to a rowdy room akin to 

,” Naig says. The auction for his Beaverdale purchase had a “barracuda of an auctioneer. There were a dozen people in the room, three or four bidders. The key is not to get sucked into other people’s energies. My number was on a slip of paper, and I never went over that number. That discipline is what differentiates a strategic investor from an emotional buyer.”

Intrigued rather than scared? One surprising place to find upcoming foreclosures is in the local paper. “It seems like a relic from the past, but it remains one of the most reliable early indicators that a property is headed to auction,” says Naig. Even if you can’t inspect the property, at least do a drive-by—and, if you like what you see, arm yourself with preapproved financing or cash—and build 20% more into your budget to cover all the fun surprises in store once you open that door.

“I’ve witnessed people make a fortune at auctions, but I have also seen egos get costly,” says Fuentes. “Know your ceiling and walk away if it gets too high. Don’t let adrenaline add to your sums.”

Pros and cons of buying a foreclosure

Mortgage defaults are growing. Here’s why they often land in the hands of investors. 

The foreclosure boom’s hidden payoff and perils

Real estate auctions turn humdrum home sales into a fast-paced spectator sport, thanks in large part to the rapid-fire chant of the real estate auctioneer. To give you a peek behind what it’s like to step up to that podium, I spoke to Beth Rose of 

 in Maumee, OH. Here’s how she got her start, why real estate auctions have exploded in popularity, and what investors should know.

How did you become a real estate auctioneer?

 “I come from a family of auctioneers. My dad was a real estate broker who sold his Century 21 franchise back in the ’80s, went to auction school, then opened Rose Auction Group. I was 16 at the time and thought that was bizarre, because my image of an auctioneer was someone in jeans, a cowboy hat, and a big belt buckle. My dad? I never once saw him in jeans; he even mowed the lawn in his dress pants. My younger sisters and I started out working at auctions as the hot dog girls, then graduated to setup, and then we eventually went to auction school. My dad set us up as competitors. He passed away in 1998, but we’ve continued his legacy. I went to auction school when I was 18, so I’ve been an auctioneer for about 40 years and now teach at auction school. My three sisters are auctioneers, and my daughter is now a third-generation auctioneer. Even my 6- and 8-year-old grandkids can auction.”

 “I was 24 and wore a pink suit to an auction on Vogel Street in Toledo. I got out of the car and fell into a mud puddle. I was so nervous, I didn’t sleep the night before, I was covered in mud, and… I sold the house! I realized how I sounded and looked didn’t matter since they wanted what I had.”

Can you tell me more about that rapid-fire chant auctioneers are famed for?

 “In order to get your rhythm and momentum, auctioneers use filler words. You have this number, you’re asking for that number, and the stuff in the middle is filler. Mine are ‘woulda go, woulda make it, woulda bid…’ I’m so used to saying them that I actually have to think about it. There’s an art to it. I’ve done auctioneer competitions where you’re judged on bid calling, clarity, rhythm, poise, and presentation. I won the International Auctioneer Championship in 2016 and beat my daughter, Sara, by a tenth of a point. Sara won in 2017.”

 “Oh my goodness, yes—not just with foreclosures but regular homes, too. Sellers love auctions because there are no contingencies with the offer and the sky’s the limit. Buyers love auctions because of the transparency: You get to choose when you bid, at the time you want to bid, you can do it on your phone, online, in person, and it’s definitive that day. All the due diligence has been done prior to, or it’s waived. Everything in life these days is about speed and convenience. A live auction takes between 12 and 20 minutes. An online auction might last for a week, then get really busy in the last 15 minutes.”

Got any advice for investors on buying at auction?

 “With foreclosures, investors can get a heck of a deal. They can grab properties at auction, clean them up, then flip them or keep them as rentals. One of my investors called me to say that he just made $170,000 on a flip, $110,000 on another flip. But before you bid on a property, it’s important to ask all the right questions. Read through those terms at the auction and know what they mean.”

Do bidders ever get carried away and regret their purchase?

 “Not typically because when you win at auction, it’s an adrenaline rush. I’m sure buyer’s remorse has happened, but usually it’s when people couldn’t come up with the money. In that case, you just go to the backup bidder.”

What’s it like having everyone in your family in the auction business?

 “We’re all the best of friends, but also fierce competitors with each other. It’s made us at the top of our game. We just can’t talk about real estate or auctions at the dinner table with our mom. It drives her crazy.”

Real estate auctioneer advice

Here's how these fast-talking sales pros whip up bidding wars that are sights to behold (and hear). 

Sold! Confessions of a real estate auctioneer

, but a growing number of properties are listing for a whole lot less. Like, $1.

, a real estate investor and agent at Keller Williams NJ Metro Group, recently put a Newark, NJ, 

“I’d never listed for $1 before,” says DaSilva. But his gamble paid off: Within days, the listing attracted “hundreds of inquiries and dozens of offers” that ultimately pushed the final sales price up to $550,000, which he calls “record-setting for a three-bed 1.5-bath sale.”

Although some sellers might cringe at listing their property for a buck, DaSilva points out that 

 asking price is simply a starting point. “I have argued with sellers for years that the market dictates the sales price,” he says. “Here we are now with a proven concept.”

One-dollar listings are rare but on the rise: 

 were put on the US market in June for $1, a 24% increase from one year ago and an 82.9% jump over two years.

“The number of homes listed for $1 has climbed steadily as sellers look for creative ways to draw buyer attention,” explains Hannah Jones, senior economic research analyst at Realtor.com.

Between elevated mortgage rates and record home prices, buyers have been scarce lately. Even megamansions are being listed for a buck—including a five-bedroom, 5.5-bath, 6,000-square-foot house in Colts Neck, NJ, represented by investor and agent 

, who decided to give the $1 sales tactic a try for the first time in July.

“I have not listed like this before, but with the economic downturn, it’s a very different approach to marketing that drives more traffic,” Pavlushkin explains. And it paid off, with “tons of showings and multiple offers and tons of calls and questions.”

If there’s any downside to $1 listings, it’s that they get 

 much attention, often from non-serious buyers who can be a time suck to sift through. Or, if you’re worried your $1 listing won’t sell for the sky-high price you’re hoping for, you can always set a retainer that must be met before the deal can go through. Since buyers aren’t informed of what that minimum is, that leaves plenty of room for them to overshoot the mark.

And if you spot one of these $1 listings in the wild, making the winning offer will require your best negotiation skills. “You really want to look at comps [comparable properties] and understand the market,” DaSilva says.

“Ultimately, a home is worth what a buyer is willing to pay for it,” adds Pavlushkin—who is currently awaiting the outcome on that 

 in Colts Neck. Anyone wanna guess what this home will ultimately go for? 

, and I’ll reveal who came in closest once the deal has closed.

Are $1 homes for real? 

Properties selling for a dollar are rare but on the rise. Here’s what this low listing price means.

What’s the deal with all these $1 homes? 

” in 13 years, with fewer contracts signed in April through June than any other period since 2012, according to Redfin. All for good reason: The median home price is at a 

, while interest rates remain stubbornly above 6%.

This one-two punch to affordability has pushed many once-hopeful homebuyers to the sidelines. But there’s one group who’s stepping into the ring: real estate investors.

So far in 2025, real estate investors have 

 of all existing and newly built single-family homes—the highest share on record, according to property analytics firm Cotality. Small investors made up 25% of these purchases, compared to just 5% of large investors.

Why, in this dud of a market, are small investors gaining an edge?

“While many homebuyers are sidelined by affordability challenges, this market has been a huge opportunity for small investors because competition is lower,” says Austin Glanzer of 

. “This has allowed me to negotiate better deals.”

“Investors thrive on friction, and right now there is plenty of it in the market,” agrees Jacob Naig of 

. “High interest rates [created] a vacuum that small, local investors are perfectly positioned to fill. We are not running numbers based on 30-year rates, but on cash flow, cost to rehab, and a hold strategy.”

Meanwhile, “Big institutional buyers are largely on the sidelines [because] they can’t switch on a dime,” Naig adds. “Small investors can be hyperlocal, nimble, negotiate seller concessions, and focus capital deployments on off-market or lightly distressed homes.”

“Even though it’s been a tough market for the average buyer, it’s been full of opportunities for investors if they can move fast,” agrees Ron Myers at 

. “Traditional buyers are sitting on the sidelines, especially when homes need repairs. That’s where we step in and help solve problems.”

The US is also shifting to more of a buyer’s market, which will grow even more favorable come fall as home sellers who’ve missed the spring/summer window get desperate.

“The reason investors are dominating is because many sellers who are listing right now tend to be in distress,” says Steve Keighery of 

. “Those aren’t properties that retail buyers are eager to take on. That’s where investors step in.”

Naig, for instance, just bought a duplex for 80% of the after-repair value from an owner who couldn’t get it sold in the spring. Into the fall, Naig anticipates, “days on market will increase just enough for direct-to-seller methods to become effective. We’re doubling down on targeted mail and agent referral outreach for distressed properties. And instead of trying to get cash-only low offers, we are getting creative with seller financing, ‘subject to’ deals, and extended closings to give sellers options without sacrificing our money.”

Another upside for investors is that since high mortgage rates have convinced many homebuyers to stick to renting for now, investors who are snapping up properties and turning them into rentals are perfectly positioned to house the very people who’ve put homebuying on hold. As Andrew Fortune at 

 explains, “In Colorado Springs, because families are hesitant to buy, investors are scooping up single-family homes and holding them for steady rental income.”

This is not to say that the emerging buyer’s market does not present challenges for investors, too.

“Even though it’s a buyer’s market, as an investor, you’re both the buyer and the seller,” says Lisa Martinez of 

. “That means we need to add an extra margin from the start to help cover longer hold times and possible price drops. We’re still active, but the key is making sure every deal has room to breathe on both sides of the transaction.”

How to invest in a slow housing market

Why real estate investors see opportunity in the market’s roughest patch in 13 years.

Why a bad housing market is good for investors

After Justin Cambra retired early from Amazon in 2022 to pursue a career in real estate, he never imagined that his smartest investment wouldn’t be a house but a half-acre 

“I had tons of unused parking space at my duplex—the area had always been overgrown with shrubs and weeds, but it had great potential,” he recalls. “A friend who’s also a real estate investor told me about an app called 

 that helps you rent out parking spaces. Once I learned about the high demand for long-term parking, it was a no-brainer to turn this unused space into passive income.”

Cambra posted some photos of his paved lot on Neighbor, and within a few weeks, cars, boats, and RVs began rolling in. “The process works very similar to Airbnb: Customers request the space, and I approve it,” he explains. Since his lot is just three miles from Seattle-Tacoma International Airport, “most of my customers are taking long international trips and stay between two weeks and two months. I generally have between eight to 10 cars in my lot at any given time.”

Best of all? The half hour of work Cambra puts in every month rakes in $30,000 per year, which breaks down to about $5,000 per hour.

One in nine Americans rent a storage unit, and many more need parking spaces for their cars and other vehicles. Meanwhile, plenty of people have extra space in their driveways, garages, attics, basements, or yards that can now earn their keep on 

, and other peer-to-peer platforms. Customers not only save money—paying about half what professional storage facilities charge—but may also enjoy a closer and more convenient place to stash their stuff, since free square footage can pop up just about anywhere.

“You’d be surprised what people will rent if the price and location are right,” says 

 founder Joseph Woodbury, recalling a 3-by-5-foot closet in New York City that rented almost immediately. He even uses the app himself, leasing part of his driveway to a camper. Similar to Airbnb, Neighbor takes a cut of host earnings to cover operations and liability protection. The big difference is that Neighbor hosts spend an average of 16 minutes per month working on their rentals, making it what Woodbury calls “the least time-consuming, most-efficient form of passive income available nationwide.”

Peer storage has become a powerful gateway for beginning investors who lack the capital or time to invest in a whole house. But it also appeals to veteran investors eager to fully monetize their properties, repurposing empty sheds into self-storage units and unoccupied land into long-term parking.

“It’s really set and forget, and has become a key part of my investment strategy,” says Neighbor host Mike Lowe, who is poised to earn around $100,000 annually renting out spots on his 10 acres of 

 to campers and RVs. “Now, whenever I’m looking to expand, I want acreage and a house so I can produce cash flow from multiple sources from one property.”

Could peer storage and parking disrupt the $500 billion parking and self-storage industry, much like Airbnb upended hotels? With average occupancy rates over 93% at traditional self-storage facilities, Woodbury says, “I don’t see the industry becoming supply-saturated anytime soon.” He also points out that even large storage operators, such as Public Storage, use Neighbor to fill vacant units. Office, retail, and multifamily 

 also use Neighbor to lease vacant space on their properties.

“We’re seeing a lot of creative listings: vacant retail space, old barns, even unused church parking lots being monetized,” Woodbury adds. “It’s clear people are waking up to how much value is sitting in their unused real estate.”

How profitable is peer-to-peer storage and parking?

Best of all, you might already own it. Here’s how to turn wasted space into easy money.

The surprising investment that earns $5,000/hour

Now that President Trump’s massive tax bill has been officially signed into law, real estate investors might wonder what the upshot is for them.

, with endorsements from housing industry leaders including the National Association of Home Builders and the National Association of Realtors. Many investors also applauded the bill, calling it a “windfall” and a “game changer.” Here’s what investors stand to gain, and lose, and how they’re preparing.

Trump’s One Big, Beautiful Bill (OBBB) restored 100% bonus depreciation and made it permanent. “This way, real estate investors can break a property into depreciable components—HVAC systems, appliances, land improvements—which can be fully deductible in year one, which saves tens of thousands in taxes upfront,” explains Mark Lee, partner at 

“The return of 100% bonus depreciation is a game changer,” agrees Stephen Keighery, founder of 

—particularly for house flippers. “This bill creates an opportunity to offset house-flipping income by acquiring and renovating rental properties. It’s accelerating my decision to buy more, and in speaking with other investors, I’m seeing a similar mindset.”

The megabill boosts state and local tax (SALT) deduction caps from $10k to $40k, allowing real estate investors to save more on property taxes until 2029. While temporary, this update is a bonanza to investors in high-tax states like New York, New Jersey, California, and Massachusetts.

“Bonus points if you own through an LLC or S corp, since there’s a pass-through entity loophole that lets you sidestep the cap altogether,” says Carla Gericke, an agent with 

 in New Hampshire. As a result, “We’ll likely see a bump in luxury home and commercial property demand in those high-cost markets. When the tax math improves, so does investor appetite.”

Low-income housing tax credits and breaks expanded

Affordable housing scored a couple of victories. Caps were raised on the Low-Income Housing Tax Credit, which can result in significant savings for investors who build or rehabilitate low-income housing.

 more than 1 million additional affordable rental homes between 2026 and 2035,” says David Dworkin, president and CEO of the National Housing Conference. States will also be able to set new Qualified Opportunity Zones, offering tax breaks to investors for developing or improving housing in low-income areas.

Deductions on mortgage insurance restored

Another reinstated deduction was for mortgage insurance, which is typically required with down payments below 20%. The last time this fee was deductible in 2021, 

 an average of $2,364, according to US Mortgage Insurers.

The OBBB is expected to funnel federal funding into infrastructure, which will have a ripple effect through real estate. “The immediate move I’m seeing investors prepare for is zoning and land use adjustments near those funded projects around major transportation corridors,” says Mark Sanchez, a real estate manager at 

 in Florida. “I’m already looking at land parcels within 10 to 20 miles of potential development zones tied to this bill, like the stretch east of Orlando, around the State Road 528 corridor. Some of the parcels are still zoned for agriculture, but they’re right in the path of planned developments. That kind of growth usually draws rezoning interest pretty quickly. Rezoning changes property values fast.”

Although the overall picture appears positive for investors, some are bracing for potential downsides, like rising inflation and stubbornly high interest rates.

“I expect this bill, in conjunction with 

, to drive inflation up,” says Jason Hull at 

. “Combine this with the immigration crackdown, and I expect the cost of building new homes to go up over the next few months.” To prepare, he’s pivoting away from flipping to rentals, pointing out, “Rents tend to keep pace with inflation, making them a good inflation hedge.”

“My opinion is that interest rates impact investors more than changes to the tax code,” adds Jonah Hanig, CEO of Rove Travel. “With investment properties, the tax changes present a slight tailwind, but pales in comparison to the benefit investors would see from lower interest rates. Many investors are waiting for rates to come down to refi or make new purchases.”

The Great Wait for lower rates continues…

What the big, beautiful bill means for real estate

How Trump’s tax law will help (and hurt) the housing market.

After 15 years investing in real estate, 

 considers wholesaling a great tool for his company. When homeowners reach out to him requesting an offer, his team analyzes the opportunity and decides on the optimal strategy: flip, hold, or wholesale—where he’ll assign his interest in the property (contract) to another investor for a profit. “I don’t consider myself a ‘wholesaler.’ I’m a real estate investor, and wholesaling is simply one strategy every investor should understand and utilize when the opportunity is presented,” he says. “Wholesaling is often overlooked, but it works for every asset class.” Here’s how it works, plus some advice on putting it into action.

 “In 2009, I was a department supervisor for a steel fabrication company in Florida. My plan was to become an agent, as I love opportunities that won’t limit growth and earning potential. Then I stumbled upon 

 on YouTube posting content on wholesaling. I watched them all. I was skeptical at first, but after a lot of research, I came to the conclusion it was legitimate. Since leads and opportunities require a significant investment, you need multiple ways to monetize. I’ve closed wholesale transactions for a few thousand dollars to six figures on a single deal.”

 “When I started, it was primarily more hit-the-pavement style strategies and direct mail in the form of yellow letters to distressed homeowners. FYI, you will receive many angry phone calls… but it worked! I had already begun building a list of serious cash buyers in the area, so I started going to appointments and making offers to homeowners during the day, since I worked night shifts at the time. I was backed by cash buyers waiting on a good deal, so that helped build my confidence. Today, we don’t do any cold outreach to find sellers, owners reach out to us via marketing channels requesting an offer. We put everything under contract with the intent and ability to buy the property, then we’ll make a decision on exit strategy. Wholesaling is one of the strategies.”

 “Since I focused on finding buyers in the beginning, my first three deals didn’t require any marketing investment. I simply had a buyer with a specific amount of money to invest, so I negotiated a deal for three properties and then assigned them to my buyer for a total of $24,000 profit. Which at the time was incredible, since I was making around $50,000 per year with my job. Shortly thereafter, I quit my job to go full-time, but my advice for anyone getting started is make sure you have at least your annual salary in the bank before quitting your job.”

 “I like to summarize the business like this: It’s simple, but not easy. You will run into complex title issues, fraudulent sellers, crazy stories, inherited properties with multiple owners who don't get along, and so on. There’s never a dull moment, and you meet some interesting people. Last time we checked the numbers for my appointments, I’ve been to 1,700+ houses personally and made offers to buy their properties. The better at solving problems you are, the more money you will make. The best wholesalers are what we call ‘transaction engineers,’ which refers to their ability to buy a property in a variety of ways that eliminate objections with solutions to every problem. This could be offering 

, cash offer, and leasebacks. The ones that understand how to make an offer based on that seller’s situation will typically gain the most success.”

What advice do you have for others who want to follow in your footsteps?

 “Anyone jumping into wholesaling needs to understand you are not selling the property, you’re selling the contract to buy. You need to be very explicit and transparent with any marketing to buyers, or you could be seen as brokering without a license. As for rewards, the barrier of entry is low overall compared to the potential income. Build relationships with a couple of good private money lenders, hard money lenders, and strong cash buyers in your area, then you’re ready to begin making offers to sellers. Doing this the right way can also help many sellers. We’ve had many people cry at closing over the years, being so thankful for helping them and solving their problem.”

What is the biggest misconception about wholesalers?

 “Unfortunately, cash homebuyers are bashed consistently online, and there are many unethical homebuyers not doing the right things and shouldn’t be in the business, to be fair. This hurts the ones out here that are doing it the right way, truly wanting to help people, but are still grouped in with the bad actors.”

 “You’d be shocked at what we go through with sellers. We were under contract to buy a house and went above and beyond to do everything for this seller. We planned on buying this property to flip, but received an acceptable offer to wholesale the property. So everything was in place for closing, and the seller completely ghosted us right before the closing date. We spent weeks trying to reach her and recorded a memorandum of contract with the county, as well. This essentially should protect our interest in the property if she signed a contract with another buyer; the title company or attorney preparing the title would see this memorandum and need it to be released before a sale could happen. Well, come to find out the vice president of the small credit union holding the note for her mortgage created her own deed and paid off the mortgage for the seller—kitchen table closing. So the title was transferred without a title company or attorney, and now our only recourse would be filing a lawsuit. Between 2020 and 2022, we had over 40 sellers sign multiple contracts with buyers. Needless to say, they were all daunting transactions.”

 “We put a property under contract to buy in Fort Myers, FL, two weeks before the area was devastated by a hurricane. This property was owned by an older couple and needed major repairs prior to the hurricane. So they lost power and didn’t have any money for food. We advance sellers money all the time if the title comes back clear to close for moving, a deposit for a new place, and so on. Typically, the funds would be released from escrow, but the seller needed the money ASAP. So during the storm, we facilitated helping them get to Western Union and sent the money. Many times, purchase prices are renegotiated after a storm, due to additional damage or just the fear of an immediate value drop based on storm stigma. Well, the hurricane damage wasn’t substantial enough for us to do that with this couple, and we felt like they had been through enough, so we left the same deal in place and found a buyer to close on the property. We could have easily dropped the price without an issue, but our goal is to truly help people, and sometimes, just because you can drop the price doesn’t mean it’s the right thing to do. And one of the best aspects is that we gave them $40,000 higher than they were asking for the property! When they called us, all they wanted for the property was $45,000. We gave them $87,250. And we still made a $12,750 wholesale fee on that deal.”

 “Here’s a cool story about life coming around full circle: Around 2018, I joined a highly exclusive mastermind for real estate investors that requires a significant annual investment and an in-depth screening process. Once I became a member, I realized that Michael Jake was also a member of this group! He’s a great real estate investor and very nice guy, so it was cool after 10 years of success to become friends with the person from the beginning of my journey into the business.”