Tetherow has announced that they have 'closed' on 19 sales.
As Bendbusterbilbo would point out, these are houses that aren't built yet.
But even if you take these figures at face value -- which, after the 'sell-outs' at the Plaza and Franklin Crossing is perhaps naive -- I'm not terrible impressed.
Tetherow has been in the works for how many years? Bauhofer and his co-workers from top on down have been swimming the real estate pool for how many years and they've snagged 19 friends and acquaintances and strangers to put down a down payment of some kind? Or just to commit?
What's really involved here? How much money has really changed hands?
As a store owner, I can tell you that sales mean nothing. Profits are all that count.
I have ways of boosting sales in the short run, if I needed to make a statement. For instance, I could call in people who have already committed to buying something from me and get them to all come in on the same week. (I don't do it, because it's a short term boost and there is a danger of getting those people trained to wait for the call.) Or, I have a few guys who I send stuff to automatically every month, and there is a bit of flex as to when I send it. I arrange to send everything off the same week. And so on. Have a couple of deals. Call a couple of customers who have been sniffing at a certain expensive item and offer them a discount. And so on.
In other words, if I needed a press release, "Pegasus sold x dollars worth of stuff this week." I could do it. And it wouldn't mean much.
So the golf developer, Mr.Kidd got the first site? I'm sorry, this looks more like a perk than an actual sale.
How much wink, wink, nudge, nudge is going on? Hey, if you work on our golf course instead of that one in Montana we'll give you your choice of sites and a sweet heart deal? And if you use it a couple of time for vacation and then want to sell, we'll guarantee you a profit?
If you ever open a store or restaurant, one of the charming things that will happen is that your friends and family will come in early and help you out. They may have had their eye on a certain item but never pulled the trigger and there it is in your store and to help you out they buy it. And so on.
It just makes sense to me, if you are talking about projects worth 100's of millions of dollars if they pan out, that a few minimal down payments in escrow wouldn't be hard the finagle. I'd be completely amazed if all 19 'closed' sales are to strangers off the street.
Hey, Joe, I'll put a down payment on one of your homesites if you put a down payment on one of mine. Don't worry down the road, we'll take care of it.
Nothing illegal, as far as I know. I'm not saying that's what's happening, just that if little old me can figure out several ways to 'close' a deal, so can these guys. Probably in ways I haven't even conceived of.
4 days ago