[jimbomaybe]

Originally Posted by Two Bills

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

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

[Kenswing]

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.

[matty8]

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.

[Bikehike]

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.

[twoplanekid]

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.

[Papa_lecki]

Originally Posted by Altavia

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.

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.

[Altavia]

Originally Posted by Papa_lecki

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.

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 :-)

[Stu from NYC]

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

[Mrs.Guy]

Originally Posted by Stu from NYC

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

You can't help yourself, can you? Always have to throw that in. Well if you think of it, it helps us too.

[Altavia]

Originally Posted by Stu from NYC

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

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.

[Stu from NYC]

Originally Posted by Mrs.Guy

You can't help yourself, can you? Always have to throw that in. Well if you think of it, it helps us too.

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

[Stu from NYC]

Originally Posted by Altavia

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.

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.

[ThirdOfFive]

Originally Posted by Altavia

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.

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.

[MorTech]

Medicare

[Bogie Shooter]

Originally Posted by matty8

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.

HOA? CDD
subdivision? Village