| 1blsdman |
02-26-2010 03:46 PM |
For an insider’s view of The developer of The Villages...I can help.
First, let me say that I LOVE the COMMUNITY and the residents of The Villages and what has been created. The beauty, the safety, the fun and the atmosphere is second to none.
I worked with and for the developer for a long time (over a decade.) I don't want to give too much info on who I am because I know them and what can happen to people who speak openly against them. Honestly, I loved working with them and am so thankful for the opportunity, the education and the experience I received but I continued to see a trend away from open, honest and fair dealing in business a few years ago.
I have seen the very ugly side.
Listen to Lauren Ritchie...she is not that far off. I understand her job is to help "sell newspapers" however if she prints complete lies then she loses any credibility and no one will listen or read her opinions.
We have all seen the movies where big corporations do things behind the scenes to "make their own rules." Read the book by John Grisham called, "The Appeal.” That book is very close to what the developer does to use politicians to bend rules in their favor. It is very easy to get all emotional when you look around at the beauty of The Villages. My fear is what will happen when all the new homes are sold. Many of us who work and worked there see the writing on the wall of what will happen in next 4 to 5 years. When new homes are all sold (at the current pace of 200 per month- about 4 years +/-) it is my very educated opinion that A LOT will change. Right now you can look up and find that their own attorney said VNN is losing almost $1.5 million per year. That's just the beginning. The IRS thing is a tip of their behind the scene "making their own rules issues." I can say with certainty one thing...the developer and the family are making sure that they are protected (their rear end covered) over anything that a resident alone could do to them. (but the truth does eventually come out- I just hope it’s not too late when they’ve moved on to retiring themselves or building The Villages #2 on over 100,000 acres they own in Texas) When they are done making 30+% or more on the new homes (and a lot more on the land) they are selling it is my strong opinion (from working with them daily for a long time) that they will do a couple things. First, the sales department will close because they will NOT work just as hard to sell your pre owned home for half of a 6% commission!! Think about it! I am confident they are making 30+% on new homes plus big land profits. I don't believe they will stick around for 1/10th of that (half of a 6% commission = 3%). Secondly, I believe they will continue to collect huge lease payments on what will be close to 2 million sq ft of commercial space and land lease payments which could easily net them $50 million annually. Look at their commercial web site for demographics.
I am NOT saying I don't love the city of The Villages because I do. I just know the family and what Harold Schwartz built was a town where he walked around and shook people’s hands and business was all done in the open ( the way it used to be and should be again).It is now in the hands of the third generation and the mentality is completely big business corporate not family (Because as we all know kids always know better than the parents and grandparents) (actually you don't have to reinvent the wheel on how to treat people with respect when no one is watching and do the right thing) If you've been in their airplane hanger, the home in the Bahamas, their Aspen house, the home in Boca, the 150+ ft yacht or in Gary M.'s home you would see the many photos of the very powerful people (law makers and politicians) who they are rubbing shoulders with and flying around with that help them make sure the rules are bent their way. Truly, I would be very careful. I’ve read many of their contracts and they are ALL one sided. It is their way or no way.
Another truth...the sales people that work for the developer make 2-2.5% for selling a new home plus they get anywhere from $200 to $2,000 or more per NEW home based on a bonus cycle every month. When the same salesperson sells a pre-owned home they get paid 1.25% and if there happens to be a bonus it is a very small bonus called 50 marketing points (or so) that can be used to advertise in their daily sun newspaper. Ask yourself this, “If you have one customer you are selling a $300,000 home to, do you push a new home at 2-2.5% plus big bonus or do you push a pre owned home that will make you at least half the commission?” They say that they want to sell pre owned homes and in some way they do but as soon as they are done selling new homes I believe they will close the doors.
Here is the truth (as I believe it)...the sooner they can sell out all the new homes the sooner they can stop all the overhead (the buildings, the trolleys, the support staff, the massive advertising and LPP's go away) The smartest thing I believe they have ever done was the resident survey because ALL the good ideas they have ever had came from asking people “what do you want?” In essence the residents built into the community what you now see. I give credit to the developer for asking the question but let me say this “ Do not believe they are here to help you, they are here to make as much money as they can.” Selling the Savannah Center based on an appraisal of so many thousand amenities fees is legal (i guess) but is it unethical or greedy, I would say YES. I support businesses that are making a profit. All I ask is that they play by the same rules everyone else has to play by. Again, I won't go into more about who I am because honestly, I know them and their tactics they use towards anyone who says a word against them and that does make me very nervous.
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