Hey there, Cam Dunlap here.
Let me say something that might surprise you.
Most people think real estate investing in a down market is a mistake. Frankly, I think it’s the best opportunity you’ll ever get.
If I had to start over from scratch right now — today, in the middle of all this economic chaos — I’d do it without hesitation. Stock market rattled. Tariffs STILL making headlines. Mass layoffs. A war. Geopolitical chaos. The general vibe out there is that now is absolutely the wrong time to make a move on anything, so no one is.
That’s exactly why it’s the right time.
A Down Market Clears the Field for Serious Investors
Here’s the thing most people miss.
When uncertainty goes up, competition goes down.
It’s almost a law of nature in this business. Fear makes the herd pull back. The amateur investor puts plans on hold. The casual wholesaler decides to wait and see. The person who was almost ready decides they’ll start when things settle down.
And just like that, you’ve got way less competition for the same deals.
Warren Buffett said it best. When people are greedy, be scared. When people are scared, be greedy. Right now, people are scared. That’s not a warning sign. That’s your invitation.
Foreclosure Investing in 2026: The Numbers Don’t Lie
The foreclosure rate is up. Significantly.
Foreclosure filings jumped 32% year over year as of January 2026. More people are losing their grip on their properties than at any point in recent years. Enormous layoffs are happening across the country. People who still have jobs are clinging to them. And people who don’t are often looking at a house they can no longer afford.
That creates a tsunami of motivated sellers.
I’ve been doing this for over 30 years. I’ve seen the cycles. What I can tell you is that the window right now for finding distressed sellers — the kind of people who desperately need your help — is as wide open as it has been in a long time.
The investors who recognize that and act on it are going to look back on this period the same way the 2009 buyers look back on 2009 and say “I wish I’d done more.” I’m one of them!
Motivated Sellers Are People, Not Data Points
I want to pause here for a second, because this matters.
A motivated seller is not just a data point. They’re a person going through something hard.
When someone is facing foreclosure, dealing with a divorce, or navigating a death in the family, they don’t always tell you that right away. They go through stages. Denial first. Then anger. Then bargaining. Depression. And finally, acceptance.
If you reach someone in the denial stage, they may not be ready to sell yet. That’s okay. That doesn’t mean the conversation is over.
What separates investors who do deal after deal from the ones who quit at the first “no” is simple. The pros follow up.
When you call back a seller 30 days after they said no, you send a message. You’re organized. You’re professional. You actually care. Most people who contact that seller never call back. When you do, you stand out in a way no script can manufacture.
That’s how trust gets built. That’s when conversations turn into contracts.
How to Find Distressed Sellers in Today’s Market
You don’t need a big operation to take advantage of this moment.
You need leads, a phone, and a willingness to be consistent.
When I get asked what I’d tell a brand new investor to do first, the answer is always the same. Go to our motivated seller data. Pick up the phone. Start dialing. No virtual assistants required. No complicated setup. Just get in front of sellers.
A few things to keep in mind as you do:
- Start with the highest-motivation leads you can find. Tax delinquencies, pre-foreclosures, absentee owners in distress. These are the people who need your help most.
- Never let a seller know you found them on a list. It puts them in a defensive posture and kills rapport before it starts.
- If they say no, note it and come back. Be the one person who follows up. That alone puts you ahead of 90% of the competition.
- Stay relational, not transactional. Think about how you can help them out of their situation, not just whether you can close a deal.
The moons have aligned right now. Use them.
The People Who Wait Are Going to Regret It
I’ve watched this play out more than once.
The market gets choppy. The news gets loud. And investors who let that noise get inside their head go quiet, right when the opportunity is at its peak.
Then things stabilize. Competition comes rushing back in. Deals get harder to find. And those same investors look back six months later and say, “I should have been doing more back then.”
The signal is clear right now. More distressed sellers. Less competition. More need.
That’s the contrarian advantage of real estate investing in a down market. It doesn’t feel comfortable. It’s not supposed to.
That discomfort is exactly what keeps the crowd out and keeps deals available for the ones who lean in anyway.
This is one of those moments. Don’t miss it.
If you’re ready to start finding motivated sellers right now, check out the Real Estate Data Feed. It’s my go-to tool for finding pre-foreclosures, tax delinquencies, and distressed property owners across the country. There’s a free 7-day trial so you can get into real data immediately and start making calls.
Don’t wait for the noise to settle down. By then, everyone else will be back in the game.
Regards,
Cam Dunlap