[BrianL99]

Originally Posted by PersonOfInterest

Trail Fees and Amenity Fees.

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

[Mrfriendly]

Originally Posted by Kenswing

If you add the actual businesses that Developer owns to the commercial side I think it might tilt it in that direction. Don’t forget, the Developer owns Villages Health, Citizens First Bank, the golf cart stores, the title company, the Championship golf courses and clubhouse restaurants. They still own the majority of the amenities below 44. I’m sure they have a lot more stuff that I haven’t mentioned. One thing for sure is that the residential feeds the commercial.

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

[spinner1001]

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

[Blueblaze]

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.

[CoachKandSportsguy]

Originally Posted by BrianL99

Home estimates are low, IMO.

The Developer is earning a "developers profit", a "builders profit" and a "sales commission". More likely, closer to 20%-23% in total ... perhaps higher.

For Commercial Space, I used a blended rate of $23/sq. ft. net. I could be off on that.

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. .

[Pat2015]

Originally Posted by Kenswing

If you add the actual businesses that Developer owns to the commercial side I think it might tilt it in that direction. Don’t forget, the Developer owns Villages Health, Citizens First Bank, the golf cart stores, the title company, the Championship golf courses and clubhouse restaurants. They still own the majority of the amenities below 44. I’m sure they have a lot more stuff that I haven’t mentioned. One thing for sure is that the residential feeds the commercial.

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

[dewilson58]

Originally Posted by Bill14564

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."

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

[dewilson58]

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

[petsetc]

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).

[sowtime444]

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)

[Bill14564]

Originally Posted by dewilson58

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

??? 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.

[BrianL99]

Originally Posted by petsetc

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).

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.

[dewilson58]

Originally Posted by Bill14564

??? 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.

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.

[CarlR33]

Originally Posted by Papa_lecki

With the talk of Spanish Springs, it got me thinking, where do you think the Developer generates more income?

Commercial Real Estate Landlord or
Home Developer?

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.

[Normal]

Originally Posted by CarlR33

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.

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.