This program offers a Builder Developer the tremendous opportunity to build a viable, profitable enterprise without investing a large sum of money. Not only will you earn the profit on the sale of each Land/Home package, but you will also earn financial incentives equating to thousands of dollars each year from the Volume Incentives offered with the sale of each Spec Home!
PROGRAM HIGHLIGHTS
- ASSOCIATED DEALERS, INC. ("ADI") will make available on consignment, one manufactured or modular home, (Spec Home) to the BUILDER DEVELOPER (BD) for placement on land owned free and clear of any and all liens, (Land) by BD for the purpose of BD selling the Spec Home and Land.
- In addition to being able to sell the one Spec Home provided by ADI, BD can also sell Customer Ordered/Retail Sold Orders (RSO's).
- BD will furnish a current Title Search and a recorded Warranty Deed to verify to ADI that BD owns the Land selected free and clear of any and all liens.
BUILDER DEVELOPER INCENTIVES
ADI generally receives a 10% Volume Incentive from the manufacturers. Amount is subject to change with written notice. ADI will pay the BD a Volume Incentive based on the rebateable invoice amounts of all Spec Homes funded. The incentives will be paid quarterly (calendar quarters) and are retroactive back to dollar one as each Annual Purchase Volume Plateau is reached.
The Volume Incentive earned by BD is calculated in the same manner as the manufacturers compute the Volume Incentive for ADI. The Volume Incentive will be paid within 15 days after ADI receives the Volume Incentive from the manufacturer (paid on calendar quarters).
Annual Purchase Volume Plateau |
|
Incentive Amount |
| $1.00 |
to |
$300,000.00 |
|
2% |
| $300,001.00 |
to |
$600,000.00 |
|
4% |
| $600,001.00 |
to |
Greater |
|
6% |
BUILDER / DEVELOPER REQUIREMENTS
- LICENSING REQUIREMENTS: BD will provide ADI with copies of all licenses (must be current) required to purchase and sell manufactured or modular homes.
- INCORPORATION: BD must be incorporated.
- ZONING & PERMITS: All zoning and permitting issues required to confirm the Spec Home can be placed on the Land are the responsibility of BD. BD must furnish ADI copies of all required permits prior to a Purchase Order (PO) being issued.
- APPRAISAL: BD will furnish an appraisal on the Land. ADI must approve of the appraisal.
- DISPLAYING SPEC HOME: BD agrees to properly and professionally set the Spec Home and install all improvements to the Land and the Spec Home within 30 days of delivery to the Land.
PROCESS
- LEASE: BD will lease the Land where the Spec Home will be located to ADI for the sum of $10.00 per month for a period of fourteen months from the invoice date or until the Spec Home has been paid off to ADI, whichever occurs first. Upon payment to ADI by BD for the Spec Home, the lease shall immediately be terminated.
- DEPOSIT REQUIREMENT ON SPEC HOME: BD must make a minimum Deposit of $5,000.00, payable to ADI on the Spec Home. ADI reserves the right to require a greater Deposit depending on the cost and complexity of the Spec Home and the nature of improvements attached to the Spec Home on the Land. The $5,000.00 Deposit shall be credited against the Invoice cost of the home at funding.
- MECHANICS LIEN: ADI will place a recorded Mechanics Lien on the Land for the invoice amount of the Spec Home minus the Deposit paid by BD. The Mechanics Lien will remain in place until the Spec Home has been paid for through an Escrow/Title Company to ADI. Upon payment to ADI by an Escrow/Title Company, ADI shall authorize said Escrow/Title Company to release the Mechanics Lien against the Land.
- AUTHORIZATION TO OCCUPY SPEC HOME: BD will notify ADI when the Spec Home has been sold and is pending funding by forwarding all information regarding the sale to ADI. BD will not allow any individual or entity to occupy or take possession of the Spec Home prior to BD having paid ADI for the full invoice minus the Deposit and any Security Funds (as defined below) paid. When payment for the Spec Home is made as indicated, ADI will issue an AUTHORIZATION TO OCCUPY to BD.
- FINANCE CHARGE: On the Spec Home provided by ADI, the Flooring Incentive of $1,350.00 per floor added to the price of the Spec Home (amount is subject to change with written notice) shall be utilized to pay the flooring costs on the Spec Home provided by ADI for the first 150 days from the invoice date. Should BD fund the invoice on the Spec Home to ADI prior to the Flooring Incentive dollars being exhausted during the 150 days, BD shall be entitled to any unused amounts. Payment to BD will be made within fifteen days after ADI receives the Flooring Incentive money on the Spec Home from the manufacturer. Beginning on the 151st day from the invoice date, BD will pay a non-refundable monthly finance charge equivalent to the interest rate charged by the wholesale finance lenders to ADI on the spec home provided by ADI. ADI will bill BD by the 3rd working day of the month following the 150th day and each month thereafter for payment via Automated Clearing House (ACH) by the 5th working day of each month. The Finance Charge rate is subject to change.
- SECURITY FUND: If the BD does not fund the total invoice amount to ADI on the Spec Home provided within 180 days from the invoice date, BD agrees to pay via ACH, 2% of the total invoice monthly into a Security Fund until the Spec Home has funded, at which time a refund of the Security Fund paid for the home will be sent to the BD by ADI. Beginning on the 181st day from the invoice date, BD will pay 2% of the total invoice on the Spec Home provided by ADI. ADI will bill BD by the 3rd working day of each month following the 180th day and each month thereafter, for payment by the 5th working day of each month. The 2% Security Fund payment is in addition to the monthly finance charge.
- PAYOFF OF SPEC HOME: If BD does not fund the total invoice amount to ADI on the Spec Home provided within 365 days from the invoice date of said Spec Home, BD must purchase the Spec Home by paying off the total invoice amount minus the Deposit and any Security Funds paid in on the Spec Home. The Spec Home will also be discounted for the amount earned in Volume Incentives by BD. Prior to the 365th day, ADI will send to BD an invoice showing the payoff for the Spec Home net of the Deposit, any Security Funds and Volume Incentives. BD agrees to make full payment of the amount billed to ADI within five (5) business days following the 365th day. If the Spec Home sells within the 365-day time allowance, ADI and BD will determine if another Spec Home will be allowed for placement.
Here is an example of how much money in Volume Incentives you can earn in a year under the program:
Let’s say you fund a total of 8 new doublewide Spec Homes in a year using $76,000.00 as the rebateable invoice amount of each Spec Home. How much would you earn in Volume Incentives? 8 Spec Homes multiplied by $76,000.00 rebateable invoice per Spec Home = $608,000.00 in total rebateable invoices for the year. Hitting this level earns you a Volume Incentive of 6% of the $608,000.00 or $36,480.00 in your pocket over the year!
Remember the Volume Incentive of $36,480.00 earned for the year on 8 sales is in addition to the profit earned
on the sale of each new Spec Home!
Don't delay! Start taking advantage of this opportunity today by calling ADI now at 888-200-2640. |
