The builder's loss is prvate equity's gain

Fortune this week is echoing my sentiments. Some over-levered homebuilders are in trouble. Face it: You pay your (less, in this case) money, you take your chances.

And -- no big surprise -- private equity firms and hedge funds, flush with cash, are ready to buy, buy, buy. Take these smart guys, pair them up with savvy local developers (not amateurs) who really understand dirt, come to the table flush with cash, and voila! Gold in them thar hills....

Remember, one company's misfortune can be another's fortune - literally. It is not pretty sometimes but it is reality, like it or not.

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