Friday, January 28, 2011

Paulson Buying into Real Estate

John Paulson, who just picked up a 2010 paycheck in excess of $5 billion and who netted $4 billion in 2007 by being short the subprime market, is now a real estate buyer.

One of Paulson's newest projects is in the Sonoran Desert in the American Southwest, where he is buying residential-development lots.

Marketwatch reports that one of Paulson's  main strategies is to buy undeveloped tracts of land that already have environmental and building permits. Roads, sewers and electricity may also be in place, but not homes, according to one of the people familiar with the fund.

If the real-estate market recovers enough for developers to start building more new houses, this may be the type of land they buy first. That’s because a lot of the costly, time-consuming preparation work already has been done, the person explained.

1 comment:

  1. On the other hand, there's the case for international property: