Or you buy distressed properties. A friend of mine invests directly in tax liens, and develops very good relationships with the people who were underwater. He

Or you buy distressed properties. A friend of mine invests directly in tax liens, and develops very good relationships with the people who were underwater. He usually works out an agreement with the homeowner to buy the house (lump sums are very valuable to these people) and rents it out to them for life, at a rate they can afford. Sometimes, the people take the lump sum and run (and he gets the property). In other circumstances, he has a super loyal renter-for-life. I might have gotten some subtle parts wrong, it's been a year since he last explained it to me. Obviously it's not for everybody, you really have to be a people person with a lot of empathy. :)