Quote:
Originally Posted by Altavia
Pick your own estimates but If they sell 5,000 new homes at an average sell price of $400K that's two billion a year in revenue.
Keep in mind much of that income goes back out to employees and business in the area providing a huge financial engine to the area.
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Did you back out the cost of the rec centers, the squares, the schools, the other infrastructure, the golf courses….. - all that profit needs to come out of the sale of residential real estate
New residential is probably the top, highest margin.
Resales, they make 150 to 300 basis points. Lots of overhead (office space, etc).
The commercial properties probably provide the best, consistent, recurring cash flow.
The other businesses (bank, insurance) really help ensure they can sell houses, but probably provide good recurring cash flow.
Radio station and newspaper probably not so much.