Carl's November Blog


Notes from the Star front lines:

•At Snowbird, going into our second, selling season we are really set up. What a difference it makes - start-up one year to 'roll-out'' in year two. Great developers, great sales team and wonderful buyers!

•Vallarta Gardens in Puerta Vallarta just the opposite; the jumble of tasks for a start up getting into sales - a full time job for five, but handled expertly by Ron Frank and Ash Offermann from Star.

•Finishing the main selling season at Meriwether in Montana, owner occupancy of homes, adding operations to sales, and if initial owner users are indicators - the project's a winner.

•Success story or is it genetic? Josh, son of Sherman Potvin, sales exec extraordinary with Ritz and others, came to Meriwether as 'green 'pea' last December and this November he's the #1 salesperson and just escrowed a three-lot purchase in addition to all his fractional sales! We think it's our sales education program designed by Ron Frank. What's say, Sherman?

ULI's annual conference held last month in Vegas at the Venetian. My question: how big is too big for Vegas hotels…how many towers do there need to be and how long a trek is long to get to your room and back to the conference center? That aside - Recreational Development Council day focused on Lake Las Vegas a star-crossed development now 20 years in the making. From our discussions beyond Lake LV:

•The sub-prime crises and the availability of development money is affecting community developers not unexpectedly. The niche players with well located projects or the fractional guys continue to sell well. No 'crisis' in sight for them. As a couple of Council members said, 'We're in an emotional recession".

•Responses to developer's laments on slow moving inventory - get out there and sell the product! The order taking years are over! That's not news to those of us in the shared ownership business as we've always been advancing our shared products, and have sharply honed sales skills.

•Great presentation by Jim Taylor of Harrison Group on wealth in America and how that relates to buying vacation homes. Some of his points:
•Most of the wealth today has been accumulated in the past 15 years.
•The wealthy today have come from the middle class and retain many of
those values
•Discretionary income above $25k per year is the real, target for our
business, and families with discretionary income of over $125k and
up to $499k either own fractions at a good percentage and/or
plan to buy them at a higher rate than a wholly owned home. Over
$500k the percentages flip back to the fully owned home.
•Plumtv.com….if you have to ask…no, seriously a web site for selected,
mega wealthy resort areas that tells owners what's happening, so
they can plan before their arrival. And, in these towns when they do
arrive, in season, they take over the place. Think Nantucket, Sun
Valley, Aspen, etc.

•Auctions for failed fractional projects? I've seen two so far…in Santa Barbara and Big Bear CA. Both filed - do we call that 'failed squared'? Why, beats me, but common sense would say that the buying public is not yet aware enough to jump on these deals. Or, the stigma of a failed deal and how will owner services be provided and the HOA costs, etc?