Talk of The Villages Florida

Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   The Villages, Florida, General Discussion (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/)
-   -   Developer’s largest income stream (https://www.talkofthevillages.com/forums/villages-florida-general-discussion-73/developers-largest-income-stream-351839/)

Stu from NYC 08-04-2024 09:39 AM

They have done a great job building this place and have cashed in on building a better mousetrap.:BigApplause:

BrianL99 08-04-2024 09:51 AM

Quote:

Originally Posted by CarlR33 (Post 2356157)
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.

There's a word salad if I ever read one.

The OP asked about the Developer's "income" as it relates to (2) things. "Building/Selling Homes" and "Commercial Property Landlord"

He didn't ask about the other businesses the Developer owns, such as banks or mortgage companies.

He didn't ask about "revenue", he asked about "income" to the Developer. "Revenue" is not "income". (Income Definition & Meaning - Merriam-Webster).

It's not that complicated to figure. Developing, building and selling homes in the way the developer does it, should yield between 20%-30%. Maybe a little more, perhaps a little less.

Renting commercial space (retail, office, industrial, etc.) should have a blended yield between $18 sq. ft. - $28 sq. ft., including any "% of revenue" on retail space. Probably not much more, nor any less.

How much of that flows into someone's pocket, is an entirely different question, but it's obvious the Developer is doing fairly well.

Haggar 08-04-2024 10:13 AM

Quote:

Originally Posted by Bill14564 (Post 2355844)
So some WAGs on numbers:

Commercial: 7,000,000sqft * $30/sqftyr = $200M/yr
Development: 3,000homes/yr * $400,000/home * 15%profit = $180M/yr

Using those guesses, commercial wins but certainly not "by far."

On the development side profit seems about right. The largest residential builder - DR Horton reported net income of 18%. Lennar the second largest reported a net income of 11%. Both use their own agents to sell their homes.

On the commercial side they're not making $30 a square foot. They're probably grossing more per square foot but they've got to write off the cost of building, interest, real estate taxes, INSURANCE, common area maintenance, overhead, personnel so their profit margin is considerably less. BUT the profit is like an annuity - comes in year after year building each year as rents are raised and more footage is added. Rent always increases faster than costs since the mortgage (principal and interest) is fixed.

LianneMigiano 08-04-2024 10:20 AM

The Developer's income concerns you why?????
 
Just curious, what difference does it make how much and from where the Developers take in their income? My Mom taught me to MYOB when I was very little. I didn't see any of these folks that are so "curious" about the sources of the Developer exposing how much and where they obtained their money over the years.

Papa_lecki 08-04-2024 10:35 AM

Quote:

Originally Posted by LianneMigiano (Post 2356219)
Just curious, what difference does it make how much and from where the Developers take in their income? My Mom taught me to MYOB when I was very little. I didn't see any of these folks that are so "curious" about the sources of the Developer exposing how much and where they obtained their money over the years.

Because we ALL literally, live around the Developer’s decisions.
We all bought a home the developer originally built and sold to someone
We all use the commercial real estate the developer owns.

And I am sure the Developer makes plenty of $$$ from the bank, insurance, media, etc.

And it’s fun to talk about.

Stu from NYC 08-04-2024 11:15 AM

Quote:

Originally Posted by LianneMigiano (Post 2356219)
Just curious, what difference does it make how much and from where the Developers take in their income? My Mom taught me to MYOB when I was very little. I didn't see any of these folks that are so "curious" about the sources of the Developer exposing how much and where they obtained their money over the years.

Guess you do not want to call him and ask?:bigbow:

JMintzer 08-04-2024 11:16 AM

Quote:

Originally Posted by sowtime444 (Post 2356125)
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)

That is an industry standard for commercial real estate...

Topspinmo 08-04-2024 11:55 AM

Quote:

Originally Posted by spinner1001 (Post 2356077)
The enormous profits the developer earns from running the movie theater in LSL.

Only gets the lease agreement costs, but not one probably loosing money.

Glowing Horizon 08-04-2024 02:53 PM

the developer also makes substantial income from real estate commissions on resale home which are listed with the Developer-owned listing service. They also sold the out-lots of land for commercial development at corners & along major thoroughfares. Plus they may have sold land to local, county & state government for roadways & other public utilities.

Glowing Horizon 08-04-2024 02:59 PM

And the developer owns The Villages television, radio & newspaper. Also, the tradesmen & new home materials suppliers may pay fees to the developer to be an exclusive supplier. The developer exclusively controls every CCD until 50% of homes are sold.

BrianL99 08-04-2024 03:42 PM

Quote:

Originally Posted by Glowing Horizon (Post 2356327)
the developer also makes substantial income from real estate commissions on resale home which are listed with the Developer-owned listing service. They also sold the out-lots of land for commercial development at corners & along major thoroughfares. Plus they may have sold land to local, county & state government for roadways & other public utilities.


Quote:

Originally Posted by Glowing Horizon (Post 2356330)
And the developer owns The Villages television, radio & newspaper. Also, the tradesmen & new home materials suppliers may pay fees to the developer to be an exclusive supplier. The developer exclusively controls every CCD until 50% of homes are sold.

Who cares? None of the above is related to the OP's question.

If you want to start a thread about how many different profit centers the Developer has, go for it.

Stu from NYC 08-04-2024 03:52 PM

Quote:

Originally Posted by BrianL99 (Post 2356339)
Who cares? None of the above is related to the OP's question.

If you want to start a thread about how many different profit centers the Developer has, go for it.

TOTV threads often go off on tangents

Byte1 08-05-2024 05:32 AM

1. The developer makes lots of money
2. The developer sells a way of life/lifestyle
3. The developer employs a whole lot of people
4. The developer pays a whole lot of taxes and Florida and it's counties have major tax revenues as a result
5. The developer's income/wealth has no effect on me
6. If the developer's income bothered me, I am free to move elsewhere because I live in a free country
7. Thousands of lives are enhanced in a positive way due to the developer's plan

Bilyclub 08-05-2024 06:51 AM

We are also free to discuss it on TOTV. Don't look if it bothers you


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