Exclusive: Paulson and other smart money buying dirt

A real estate recovery fund backed by Paulson will, with court approval, be the first bidder on a portfolio of land assets up for auction from bankrupt homebuilder TOUSA Inc (TOUSQ.PK), according to two sources with direct knowledge of the matter, who spoke about it on Wednesday and Thursday. They asked not to be named because they are also potential bidders. TOUSA picked the Paulson entity to bid on a portfolio consisting of lots in various stages of development in Arizona, Colorado and Nevada. To make their comeback, homebuilders, whose shares are up 72 percent from the March 2009 stock market bottom, are counting on acquiring land at distressed prices.

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