Where does the developer make the most money?

[Boston-Sean]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

[ThirdOfFive]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses
No idea. And I really don't care.

[Two Bills]

I heard that their biggest earner was selling fake leather belts on market night at the squares!

[Byte1]

How the developer makes his money is no one's business, other than IRS.

[charlieo1126@gmail.com]

I spend a lot of time thinking about that , while I watch my grass grow

[dewilson58]

According to another thread, he makes a lot of money owning ToTV.


:pepper2:

[Mrs.Guy]

I heard that their biggest earner was selling fake leather belts on market night at the squares!

:1rotfl::1rotfl::1rotfl:

[Mrs.Guy]

According to another thread, he makes a lot of money owning ToTV.


:pepper2:

:shrug: Yes, but does he make more than he has to pay out in rent for being in some posters' heads? :rolleyes:

[Two Bills]

I spend a lot of time thinking about that , while I watch my grass grow

I thought you bought your stuff.
Didn't realize you grew your own!:thumbup:

[tophcfa]

How the developer makes his money is no one's business, other than IRS.

I’m sure the Banks and other lenders they do business with want to see audited financial statements (unless hard assets are pledged as collateral to back loans). But it’s not the general publics business unless the entity is taken public.

[charlieo1126@gmail.com]

I thought you bought your stuff.
Didn't realize you grew your own!:thumbup:well dude , sometimes I’m CONFUSED!!!!

[RICH1]

Questions like that, makes one want to leave the door open when they start the car ….

[njbchbum]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

If you need to know this - what is that need?

[Altavia]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

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.

[Stu from NYC]

If you need to know this - what is that need?

Curiousity? I do find it an interesting question but would guess on houses. They must make a huge profit on the lot.

[jimbomaybe]

I thought you bought your stuff.
Didn't realize you grew your own!:thumbup:

" No extra stones, no extra seeds, Village Gold is bad a$$ weed"

[Kenswing]

They own a bank. They probably make more money on the life of a loan than they do on the sale of the house itself. Especially at 7% interest on a mortgage.

[matty8]

I also think it is a good question by Boston-sean. I would say it is no different than questions about where money goes on a subdivision's hoa. Is it the bonds, new homes, the 20 percent charged to onsite stores, state or fed. kickbacks? I don't think he's bad mouthing The Villages, just curious.

[Bikehike]

Calm down everyone, it's just idle conversation like if you're sitting at a bar. It's not always a problem to be solved.

[twoplanekid]

NSCUDD purchased the solid waste management (trash) operation from the Developer in 2012 for some $55 million. No land and very little equipment was involved in this sale. NSCUDD received exclusive rights for trash pickup services from the developer for residential customers who signed this right when they purchased their new home from the developer and some commercial accounts. The determination of value (purchase price) is made by projecting out the likely income accumulated over a 30 year time period by two valuation firms and then a formula is used to determine the final price. So, the developer gets exclusive rights for almost free that are sold for a handsome profit. I personally don't like the process for establishing the value that is used but it is perfectly legal and many believe the best way to make this type of a purchase.

The purchase of the two water systems between 466a and 44 by NSCUDD from the developer followed this same valuation procedure.

[Papa_lecki]

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.

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.

[Altavia]

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.

The question the OP ask was for highest revenue.

But if you assume for example a 25% gross margin ( or pick a number you like), that's $500 million a year to pay infrastructure and other expenses.

I suspect those funds are substantially rolled back into the community as you describe.

Sometimes it feels like we are living in a real world version of SimCity :-)

[Stu from NYC]

Smart folks they have figured all kinds of way to make money. And they do it the old fashioned way they earn it. Does help to have lots of political clout though

[Mrs.Guy]

Smart folks they have figured all kinds of way to make money. And they do it the old fashioned way they earn it. Does help to have lots of political clout though

:laugh: You can't help yourself, can you? Always have to throw that in. Well if you think of it, it helps us too. ;)

[Altavia]

Smart folks they have figured all kinds of way to make money. And they do it the old fashioned way they earn it. Does help to have lots of political clout though

They invest a lot making things nicer than they would have to.

The custom interior furnishings in Rec Centers and the new schools are examples where they went first class.

[Stu from NYC]

:laugh: You can't help yourself, can you? Always have to throw that in. Well if you think of it, it helps us too. ;)

Actually the political clouts always helps them but only some times helps us.

[Stu from NYC]

They invest a lot making things nicer than they would have to.

The custom interior furnishings in Rec Centers and the new schools are examples where they went first class.

They do it in order to sell homes and make this place what it is, and it is a great place to live.

They do not have to do anything but what they do helps them to sell and make good money at the same time.

[ThirdOfFive]

They invest a lot making things nicer than they would have to.

The custom interior furnishings in Rec Centers and the new schools are examples where they went first class.
True words. We see a lot, but there is a lot that we don't.

I was out walking the other day and saw a planting crew in action (they replant the flowers in the beds by the intersections every 90 days). It was as if it was choreographed: a lady with the plants was tossing them to this or that planter and they knew exactly where it was supposed to go. fascinating stuff. They don't have to put the flowers there, but they do.

Walking along the board fence by el Diablo and El Camino Real, there is a windrow of mulch under it. The fairway of the second hole parallels that fence and I used to find a lot of golf balls from errant shots along there. The mulch prevents most balls from rolling under the fence. They didn't have to do that, but they did.

Ever notice how every light pole in TV has a number on it? Also that the biffies on the executive courses, tunnels, all starter shacks, etc. are numbered as well? That's done for a very good reason: if somebody keels over near those places, the person calling 911 has an immediate reference so emergency services can locate the site immediately. They didn't have to do that, but they did.

A whole lot more thought goes into this place than I think most people realize.

[MorTech]

Medicare :)

[Bogie Shooter]

I also think it is a good question by Boston-sean. I would say it is no different than questions about where money goes on a subdivision's hoa. Is it the bonds, new homes, the 20 percent charged to onsite stores, state or fed. kickbacks? I don't think he's bad mouthing The Villages, just curious.

HOA? CDD
subdivision? Village

[Bogie Shooter]

True words. We see a lot, but there is a lot that we don't.

I was out walking the other day and saw a planting crew in action (they replant the flowers in the beds by the intersections every 90 days). It was as if it was choreographed: a lady with the plants was tossing them to this or that planter and they knew exactly where it was supposed to go. fascinating stuff. They don't have to put the flowers there, but they do.

Walking along the board fence by el Diablo and El Camino Real, there is a windrow of mulch under it. The fairway of the second hole parallels that fence and I used to find a lot of golf balls from errant shots along there. The mulch prevents most balls from rolling under the fence. They didn't have to do that, but they did.

Ever notice how every light pole in TV has a number on it? Also that the biffies on the executive courses, tunnels, all starter shacks, etc. are numbered as well? That's done for a very good reason: if somebody keels over near those places, the person calling 911 has an immediate reference so emergency services can locate the site immediately. They didn't have to do that, but they did.

A whole lot more thought goes into this place than I think most people realize.

We are paying for the flowers in our maintenance fees.
Numbers on light poles is reference if power company is called for bulb replacement.
Agree the District does a great job with our money.

[dave111]

No idea where they make the most money and don't care much either except I hope they continue to be successful and profitable. I am amazed to see how much they have accomplished and hope it continues.

[cypress]

If it's the villages they are making money off it. Before long all the outside contractors will have to be licensed and pay a fee to the Villages to do work here. Then just about everything will be buttoned up.

[Mrs.Guy]

If it's the villages they are making money off it. Before long all the outside contractors will have to be licensed and pay a fee to the Villages to do work here. Then just about everything will be buttoned up.


chilout No, I don't ever see that happening. What I do see that they may have cornered the market on is....... intelligence! :boom:

[Mrs.Guy]

HOA? CDD
subdivision? Village

:oops: You should have included the word "clueless". :wave:

[Altavia]

If it's the villages they are making money off it. Before long all the outside contractors will have to be licensed and pay a fee to the Villages to do work here. Then just about everything will be buttoned up.

Artificial reality...

[tuccillo]

Do you realize that the Rec Centers are sold back to the CDDs? Yes, they are nice but you are effectively paying for them via your amenities fee (as about 50% of the amenities fee, IIRC, goes to pay off the purchase of the amenities from the Developer). This, by the way, is a good thing since one of the purposes of CDDs is too maintain amenities put in by Developers.

They invest a lot making things nicer than they would have to.

The custom interior furnishings in Rec Centers and the new schools are examples where they went first class.

[Altavia]

Do you realize that the Rec Centers are sold back to the CDDs? Yes, they are nice but you are effectively paying for them via your amenities fee (as about 50% of the amenities fee, IIRC, goes to pay off the purchase of the amenities from the Developer). This, by the way, is a good thing since one of the purposes of CDDs is too maintain amenities put in by Developers.

Do what do you think a Rec Center would look like if Wildwood or Sumter County developed it?

[tuccillo]

Odd question. A better question would be "What would the Rec Centers look like if they were built by a different Developer?". Probably about the same. I have lived in and seen plenty of communities where the Developer built beautiful amenities. My point is the Rec Centers are essentially a wash to the Developer. He builds them and then sells them to the CDDs. I think the Developer does a good job on building the amenities.

Do what do you think a Rec Center would look like if Wildwood or Sumter County developed it?

[Stu from NYC]

Odd question. A better question would be "What would the Rec Centers look like if they were built by a different Developer?". Probably about the same. I have lived in and seen plenty of communities where the Developer built beautiful amenities. My point is the Rec Centers are essentially a wash to the Developer. He builds them and then sells them to the CDDs. I think the Developer does a good job on building the amenities.

Well said. The Developer builds them to make this a more attractive community and makes money by selling this stuff back to the community via the CDD.

Nothing wrong with doing this at all, actually rather clever.

[manaboutown]

THE VILLAGES DEVELOPER SETTLES LAWSUIT (https://www.tampabay.com/archive/2008/03/10/the-villages-developer-settles-lawsuit/)

[justjim]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

OP, strange as it may sound similar discussions as this thread have taken place as neighbors were sipping on their favorite beverages here in my neighborhood.

As I recall the discussion some months ago, profits from commercial properties and Citizens Bank were at the top of the list. Although not directly producing profit and income the ability to organize and implement the CDD’S also was a large part of the equation allowing the business plan to work successfully. The business model of the Villages Developer borders on genius and has to be the envy of their peers around the country.

[PersonOfInterest]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

I think its the fees they recover from people knocking down the gates.

[Mrs.Guy]

I think its the fees they recover from people knocking down the gates.

:icon_wink: That feeble attempt at humor would be funnier if you knew the difference between the "Developer" and the "District". The gates belong to the District Government. They give classes here that will educate you on how things work. The "Developer" doesn't charge for them...... neither does the "District" that gives them. :coolsmiley:

[rustyp]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

The drink shacks.

[Mrs.Guy]

The drink shacks.

:rolleyes: With the latest price increase...... very possible! :beer3:

[Worldseries27]

how would you rank the sources of revenue for the developer? I'm asking because i have no idea but i'll toss some out:

New home sales
existing home sales
commercial property leases
operating revenue from developer owned businesses
always wondered where a ice cream 🍦 store made it's money from ? but then again, the home of the green monster strikes again

[RiderOnTheStorm]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses

Easily the financial margins on all the replacement gates that dumb ass Villagers bust through.

[ithos]

I believe they get a cut of the gross from the vendors who lease from them. That has to be a significant percentage.

[Dilligas]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:

New home sales
Existing home sales
Commercial property leases
Operating revenue from Developer owned businesses
Don’t know, won’t guess, and my only concern is that “The Developer” doesn’t go out of business in TV.

[Stu from NYC]

Don’t know, won’t guess, and my only concern is that “The Developer” doesn’t go out of business in TV.

Given the money they must be making no way that will happen

[RhondaB]

Geesh, it was just a simple question. Probably just out of curiosity. No need for such snarky remarks. Just scroll on by if you don’t care. So sad to see such disrespect out of adults.

[SusanStCatherine]

The personal attacks that came from this original post led me to remove it.

[charlieo1126@gmail.com]

[QUOTE=RhondaB;2153625]Geesh, it was just a simple question. Probably just out of curiosity. No need for such snarky remarks. Just scroll on by if you don’t care. So sad to see such disrespect out of adults.[/QUOTEOh please lighten up , people just having a little fun with a question so vague,that no one could answer right even if they cared to .

[collie1228]

I’m sure the Banks and other lenders they do business with want to see audited financial statements (unless hard assets are pledged as collateral to back loans). But it’s not the general publics business unless the entity is taken public.

They own the bank.

[Altavia]

In case anyone wants to start a business here.

The Villages Commercial Property Management (https://thevillagescommercialproperty.com/)

[Bogie Shooter]

The Villages almost made over $3K on us by keeping our tax refund they were sent. We paid taxes at closing. We were also sent a Sumter County tax bill and paid it. We contacted Sumter County when we realized we paid twice and they said they sent the refund to The Villages. We contacted the Villages and it took them a month to figure out and agree to send us the money they got back from Sumter County. SMH

So, you got your money…………

[Mrs.Guy]

So, you got you money…………

:shrug: Yeah, but being upset with the Developer because she paid a bill twice is easier than being mad at herself. :oops:

[Altavia]

How the developer makes his money is no one's business, other than IRS.

If you do business with The Villages, you want to know.

https://www.atlantafed.org/-/media/documents/FRY6Docs/2017/VILLAGES_BC_2012315_2017.pdf

[dewilson58]

If you do business with The Villages, you want to know.

https://www.atlantafed.org/-/media/documents/FRY6Docs/2017/VILLAGES_BC_2012315_2017.pdf

:blahblahblah::blahblahblah:

and your point??

[Jayhawk]

How would you rank the sources of revenue for the developer? I'm asking because I have no idea but I'll toss some out:



How did you make your money? How much do you have left?

Isn't that our business as how much the developer makes is yours?

[Jayhawk]

The Villages almost made over $3K on us by keeping our tax refund they were sent. We paid taxes at closing. We were also sent a Sumter County tax bill and paid it. We contacted Sumter County when we realized we paid twice and they said they sent the refund to The Villages. We contacted the Villages and it took them a month to figure out and agree to send us the money they got back from Sumter County. SMH

Those evil developers. That must be how they make their wealth, scamming $3k tax refunds.

Wow.

[Stu from NYC]

How did you make your money? How much do you have left?

Isn't that our business as how much the developer makes is yours?

Does make for an interesting discussion.

[manaboutown]

The history of The Villages is unique and remarkable. I have read about it in a couple books and from other sources. Mark Morse was the driving genius IMHO.

[dewilson58]

The Villages almost made over $3K on us by keeping our tax refund they were sent.

We paid taxes at closing.

We were also sent a Sumter County tax bill and paid it.

Looks like you made the mistake by paying twice.

The Villages had nothing to do with your mistake.

:loco::loco:

[Bogie Shooter]

:oops: You should have included the word "clueless". :wave:

Attacking posters can lead to detention.:22yikes:

[SusanStCatherine]

So, you got your money…………

No I have yet to actually receive it.

[SusanStCatherine]

Looks like you made the mistake by paying twice.

The Villages had nothing to do with your mistake.

:loco::loco:

Seriously?

I guess they should have kept the money that doesn't belong to them to punish us for not being familiar with how new taxes work on a new residence. Yeah right - they had absolutely nothing to do with it.

[Jayhawk]

Have not got the money back yet. Still waiting for it. "Check is in the mail." It should have been refunded to us as soon as it was refunded to them. Either they have bad accounting or they deliberately kept it. They made interest on it along the way...


Either you have bad accounting or you deliberately paid it twice.

Any interest "they" made wouldn't buy a big Starbucks.

[tuccillo]

I am a bit confused. On your settlement sheet you should have been given credit for the prorated amount of property taxes (from the first of the year to your settlement date). You then pay the tax bill that comes in November. This would be the case for a cash purchase. If you have a mortgage then the property taxes were escrowed at closing by the mortgage provider. In that case, the mortgage provider would typically pay the taxes and not you. If you got a tax bill you would have sent it to your mortgage company to pay (from escrow) and not pay it yourself. Did this not happen?

Seriously?

I guess they should have kept the money that doesn't belong to them to punish us for not being familiar with how new taxes work on a new residence. Yeah right - they had absolutely nothing to do with it.

[dewilson58]

Seriously?

I guess they should have kept the money that doesn't belong to them to punish us for not being familiar with how new taxes work on a new residence. Yeah right - they had absolutely nothing to do with it.

Very Serious.

You paid it twice.

The Developer had nothing to do with it.......it was the County.

Mr. Serious.

[dewilson58]

Either you have bad accounting or you deliberately paid it twice.
.

:BigApplause:

[SusanStCatherine]

I am a bit confused. On your settlement sheet you should have been given credit for the prorated amount of property taxes (from the first of the year to your settlement date). You then pay the tax bill that comes in November. This would be the case for a cash purchase. If you have a mortgage then the property taxes were escrowed at closing by the mortgage provider. In that case, the mortgage provider would typically pay the taxes and not you. If you got a tax bill you would have sent it to your mortgage company to pay (from escrow) and not pay it yourself. Did this not happen?

Thanks for saying it can be confusing. Fortunately we figured it out in time (like doing yearly taxes). Hope other innocent homeowners who aren't accounts aren't missing their money. We're new to Florida homeownership and Florida taxes. I'm not going to respond any further since I don't want to suffer any more rude and inappropriate comments.

[tuccillo]

I am glad that it all worked out in the end.

Thanks for saying it can be confusing. Fortunately we figured it out in time (like doing yearly taxes). Hope other innocent homeowners who aren't accounts aren't missing their money. We're new to Florida homeownership and Florida taxes. I'm not going to respond any further since I don't want to suffer any more rude and inappropriate comments.

[Bilyclub]

They have very much improved on George Pullman's company town.