. >> reporter: mike baird and doug clark are business partners. among the resourceful few who have actually figured out how to make money in this topsy turvy housing market. >> you know you have a good house when you have a shopping cart just chilling in your driveway. >> reporter: they do it by flipping foreclosed homes. >> it's his mess over here in this area. 56 grand on this. >> is that going to be cheap enough? >> reporter: they've sold 1,000 and counting. >> there's a lot of properties in default. >> walking into a huge mess. >> get out of the neighborhood before you get shot. >> reporter: it's the same story for much of the country. last month, 1 out of every 563 housing units nationwide went into foreclosure. nevada has the highest rate, 1 in 180. california is next with 1 in 243. in utah, where mike and doug are, it's 1 out of more than 500. their business, which they operate together out of salt lake city, is not for the faint of heart. they buy these foreclosures at auction, which means they have to put down their money -- >> is anyone