Where does the developer make the most money?
 

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.

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

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

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

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


:pepper2:

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

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

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

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.

well dude , sometimes I’m CONFUSED!!!!

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

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

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.

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

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

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.

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.

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.

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.

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.

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 :-)

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. ;)

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.

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

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.

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.

Medicare :)

HOA? CDD
subdivision? Village

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.

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.

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:

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

Artificial reality...

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?

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.