Why? The market sees constant ups and downs. Buying when the market's high it is means greater upfront costs. And because the market cannot rise indefinitely, property investors must constantly watch for the bubble to pop.

In a down market, the question is not "if," but "when" the market will improve. If investors can buy properties at rock-bottom prices, they can afford to maintain the home until the market improves. At that point, the investor can sell the home both to recoup their buying and operating costs and to make a profit.

Some companies are looking to profit on the down housing market. Deer Park Development Corporation, a Nevada-based company, is purchasing foreclosed homes in Arizona, Nevada, California and Florida, some of the areas most affected by the down market. Nevada, for example, sees more foreclosures than any other state -; million-dollar properties can be bought for half their building costs. Between May and June, Californian banks foreclosed on 40 percent of the homes on the market.

Deer Park Development Corporation's agents and brokers draw on 35 years of experience -; they have seen down markets before, so they can easily identify promising properties.

When Deer Park Development Corporation finds a home that it wants to acquire as an investment, it works with the homeowner or bank to purchase the home at a 50 percent discount.

But the company does not profit at homeowner's expense. It negotiates with homeowners so that people can rent their homes after the sale. When the original homeowner's lease expires, Deer Park Development Corporation allows former homeowners to repurchase their properties for a predetermined price. In this way, the company invests in the down market while also helping down-and-out homeowners.