John Paulson Building Lots
John Paulson will be bidding on a number of building lots in western states through one of the hedge funds he backs, built for the purpose of reselling those lots to homebuilders who can't find enough lots to build on as banks keep the lots off the market so they can keep them on their books.
Lots being offered are from TOUSA, Inc., a bankrupt builder of homes, and whom chose the Paulson-backed real estate recovery fund to bid on lots in Nevada, colorado and Arizona.
If banks were to put the foreclosed properties on the market, they would then have to declare the losses, which would give a more accurate picture of their financial strength, which they don't want to do.
Although prices are starting to climb on finished lots, there are still good deals out there, and enormous demand for lots that are still going relatively cheap.
John Paulson and others are bidding on these knowing there's a built-in market by all the healthy builders looking to put up houses on them quickly.
John Paulson Building Lots
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