If you're paying Trail Fees & Amenity Fees to the Developer, you're getting screwed.

Don’t forget an estimated $2,000,000 for ID changeover for renters every year. $50 each per household renting

The enormous profits the developer earns from running the movie theater in LSL.

And it all comes crashing down, if word ever gets out that the "lifestyle" is just a marketing scam. Because otherwise, there is no good reason to retire to the middle of Nowhere, Florida, two hours from the nearest city, and 12 hours from your kids.

Only HALF of the baby boomers have retired. There is still millions of acres of empty farmland between "Nowhere" and Orlando or Tampa -- and 35 million Boomers left to sell it to.

For their sake and ours, I sure hope the developer's kids are bright enough to realize that a vibrant 30-year-old Spanish Springs is proof that the lifestyle isn't a scam.

I agree with this. .

As far as billionaires, wealth measurements are not income related, but asset valuation related.
So for every billion in assets, there should be about 10 - 12 % gross income and 5-6% net income, being conservative. .

They also own the TV insurance business, and a rental home business.

Looks like you are comparing commercial revenues to development margins...............apples and oranges. :shrug:

Don't forget, grandpa made (Profit) a BILLION dollars selling the land to the districts before he died.


:22yikes:

Two thoughts - as someone stated, the $30/foot commercial is not all profit and I think the profit on the home sales is much higher, maybe approaching 50% in the good years (I base this on info from a friend that used to sell for a major builder).

The commercial real estate isn't just a dollar per square foot figure. The Villages writes their commercial leases so that they get a percentage of the profits. Yes, even Publix. (This was told to me by someone who is close to one of the restaurant lessees at a golf course)

??? It is exactly to the point of the original post.

The sources of the income may be apples and oranges but once received by the Developer it is all cabbage.

I would be shocked to see there was any major builder in the USA, making anywhere near close to 50%.

Typical construction profit margins run in the 7%-15% range.

Development profit runs in the 10%-15% range.

Selling Commissions (using in-house vs MLS) will typically yield 2%-3%.

About the only time you see a major change in profit margins, is when land values go through a period of sudden inflation/appreciation and some landowners are caught on the right side of that curve.

Looks like you are comparing Gross lease revenue to Net development margin.........if that's intent, groovy.

Gross leases is $210mil

Gross development is $1,200mil

According to your numbers.

OP says "income"........with no definition of income.........gross or net.

:wave:

Most profit earning companies will not put all their eggs into one basket and some company divisions will earn more than others in the large mix. It’s not about what you think works it’s what they feel is the best mix to stay profitable and more importantly in business as a business.

Eggs
 

That’s why you own the bank where most transactions close. Losses may matter on the frontlines, but the bank always records a gain at closing time.