He can do a 1031 exchange because it is investment property and completely defer all tax and depreciation. 

There's nothing wrong with accepting a small lost if your making an educated wager that appreciation will outpace that loss AND that you have the financial reserves to handle the loss today, tomorrow, and even if the market turns south for a few years. 

The investors also are wagering that many people no longer see owning a home as an essential part of the American dream.

who hang their shingle out there I will work in exchange for mentorship.. but of course these folks have no experience so you have to be in training mode. but never know when you can polish up a gem.on stricktly commish basis I think this will be a tough one for you.. unless your a top player and buying numerous deals each week or if its a once a month auction your buying 10 to 30 props at a time.

A few of them have been foreign exchange students.

Perhaps your JV partner can front some of the cash in exchange for 50% of the profit on the back-end.

@Tom Cooper, As you can see, thanks to you, we are having a constructive exchange on how we can find opportunities in this market.

We exchange information and he gives me the owners name and #.Fast forward a few weeks, me and real estate agent still can not get a hold of the owner and the reason I am hopping on here is to ask the community how best would you go about contacting the owners to buy this property.  

I found a small, local moving company and negotiated a discounted rate in exchange for them getting all the business I generate for them.

Or exchanging for another property with a 1031 after the 5 year window for capital gains.