When you say he can't sell enough houses - does he not have enough sellers or buyers?

With such high foreclosure rates, I'm assuming it's a lack buyers. Being a property investor myself, I can tell you there are a lot of people I know personally who are biding their time and getting ready to pounce on bargains.

I'm based in the UK and so far the US market has tanked so much more. If you can package the deals and market them to UK investors I think you could be on to something.

There are definitely people wanting to buy, they just might be out of your typical geographical reach. Knock together a site with some example deals and get some exposure. Or post on loopnet.com or similar.

Google "bandwagon raiding machine" and see some products being marketing in the UK. I got access to one and basically all it says is find people in the US to source foreclosure deals then buy them.