4 of 5
BACKNEXT
Blake Rentals
There is still money to be made in real estate. Just ask Ben Davidson, owner of Blake Rentals, an eight-employee firm in Richmond, Ky., south of Lexington. The company's name is a holdover from an earlier business model; it hasn't rented anything since 2005, when it began selling the properties it was renovating after buying them at foreclosure auctions.

Davidson, 32, was flipping about nine houses a year at that point, but the subprime lending crisis shut off credit to many would-be customers, and in the first half of 2007 he sold only three properties, for a total of $260,000. "When we lost our buyers, my thought was, We still have property to move!" he explains. "Necessity brought change to our organization."

Davidson noticed that some frustrated home shoppers demonstrated enough cash flow to make payments; they just couldn't get mortgages from frightened traditional lenders. So last August he began offering owner financing. The response was immediate: In September and October, Davidson sold ten houses for a total of $662,500. Sales have continued at that pace, and Davidson typically makes 20% profit on each property.

NEXT: Gunite Supply & Equipment

LAST UPDATE: Oct 01 2008 | 2:12 PM ET
Sponsored by
More Galleries
6 designers shaking up fashion These designers are changing the way we dress, accessorize and shop, from custom made-to-fit dresses to smart jewelry that's actually stylish. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Secrets to success from Smalltown USA Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.