A Targeted View.pdf

“BABY BOOMER SURGE”

The Gastineau Family has planned for the present surge of the “Baby Boomers.
Our research and development committee has been studying this “wonderful problem” in detail for several years. Fortunately, it became necessary to implement our new “Dealership Program,” which we believe will be the answer for handling the rush. Now is the beginning of the retirement home search era.

As “Baby Boomers” zoom into retirement, will America ever be the same? Here it comes, the biggest demographic wave in American history, a mammoth market craving the same things, mainly real estate and retirement homes.

Recent quotes in Fortune Magazine, lead us to believe the “Boomers” are now ready to start their retirement planning. The big question is: how can they win at retirement? They cannot make the big mistake of avoiding the obvious. Their nest egg must be concrete and certain. Real estate and home ownership, as always, is the safest and most secure form of investment. As Will Rogers said: “Find out where the people are moving, and then purchase the real estate before they get there.” Without a doubt, the greatest opportunities are in properties.

The first of the 78 million strong baby boom generation turn 58 this year. Most of them are “healthy and wealthy,” and will be a force to reckon with. They make up almost a third of the U.S. population, and they are aging fast.  They definitely are looking to spend the remainder of their life living in a secure and interesting atmosphere. Securing a retirement home as soon as possible before construction and land prices escalate is certainly the prudent thing to do. The older and better-off boomers are alreading giving serious though and where they will live next. Gastineau’s staff and Dealers will have their hands full for years trying to conquer this “wonderful problem.”

A recent AARP report on the 50 plus generation shows those in the top quartile had a median income of $100,000 and median net worth of $360,000. As one can see, they are highly solvent and qualified to charge out and search for their dream house. Already, more than 14 million boomers are 53 and up and some aren’t waiting until 55 to take an early retirement. The “rush is on” and the “zoomers” are coming!

Very soon now, wave upon wave of zooming boomers are going to start spilling into retirement, discovering every undiscovered hideaway across the land. Without a doubt, the log home industry is now in an upward trend and will continue to escalate for years to come.

 
 
BABY BOOMER SALES OPPORTUNITIES

Also stated by Mr. Burns in USA Today and Los Angeles Times, “Older buyers will dominate the new-home market for years to come. Also, second homes will represent the ultimate discretionary market. The means and motivation to buy a second home typically come together when people reach their early 50’s. In just the past three years, the number of 53 year olds, the leading edge of the baby boom, has jumped an astounding 28%.”

Other notable industry quotes:

On Senior Housing:

“Today’s senior is much healthier and will live far longer than his predecessors… They are in better shape and are looking forward to come time to pursue their hobbies in retirement.” BUILDER, Jan. 2002

On Record Million Dollar Home Sales:

“The stock market has been a foe to some, but it has been a friend to real estate. Wealthy Americans are moving a greater part of their net worth into luxury housing.” BLOOMBERG NEWS, Sept. 17, 2002.

More on Demographics:

“Homeownership will rise by 22 million household over the next 20 years and renting will rise by less than 2 million (according to Harvard Joint Center for Housing Studies). Alsmot all of the demand is going into homes and the reason primarily has to do with rising homeownership among the Boomers. Fifty-four (54%) of home buyers purchase their first home by their mid-thirties, but homeownership rises to 80% by age 70. That means that the nation is due for a huge surge of home buyers in their 50’s and 60’s as the Boomers age.” INMAN NEWS FEATURES, October 9, 2002

On Builders Shift Away from Entry-Level Buyers:

“More and more big builders are focused on the empty nest market. For the first time, we’re going to see a surge of population of people in their fifties, and the existing housing stock does not meet their needs.” WASHINGTON POST, October 18, 2002

Just Say No to Old

“Two-thirds of the nation’s housing stock was built before 1980. Boomers don’t want these houses. Most Boomers are sitting in big houses with lots of the equity that they can use for their retirement.” CHICAGO TRIBUNE, May 21, 2004.
 
  

If you were born between 1946 and 1964 you are a “Baby Boomer.”  There are 83 million of you in the U.S. More U.S. residents were born between 1955 and 1965 than any other time in history, with the peak in 1961.

 24% of those who turned 65 in the 1990’s bought a new home.
 
 The number of these buyers will increase by almost 50% between 2005 and 2011.

 Approximately 75% of the buyers will purchase locally.

 36% of the 55 year olds surveyed plan to buy a new home as soon as their nest is empty

WHY WILL THEY BUY A NEW HOME?

The homes available for sale in the resale market do not meet their needs.

Many of this decade’s retirees will have more wealth than any prior generation of retirees.

Affluent retirees will want to customize their home to their tastes.

LOCATIONS WHERE THEY WILL LIVE

Arizona, Nevada, and Florida will continue to be the fastest growing retirement states in the country. The Pacific Northwest, Rocky Mountain Region, Texas Hill country, Ozarks, Carolinas and New England will continue to attract more market Share.

WHAT OF HOME DO THEY WANT?

They do not want a home built for old people. They want a home where they can reconnect with family and friends. They want an easy living home that an Olympic athlete would also enjoy. Their preferences will vary.

WHERE WILL THEY BUILD?

Age restricted communities will still do well, but, most demand will continue to be in non-age restricted communities. The Boomers, with the oldest turning 57 this year, will have higher propensity to stay in their local area. Many retirees will return to the site of their youth, mostly where climate is attractive. Most people prefer to live close to their family and friends. They stay closer to home because they want to continue working and visiting their grandchildren. Many retirement destinations are within a few hours of a metropolitan area. This allows the retirees to stay close to their family and friends.

TYPES OF CONSTRUCTION?

Legislation targeted at requiring builders to incorporate universal design into homes is already occurring in some areas. Universal design is to make homes accessible for all ages. Some of these features include: single level floor plans, at least one full bedroom on the main level of two story homes. In two story homes, there is a hall closet which may be converted into an elevator. At least one level entry with a ½ inch or less threshold.  Lever door handles. At least one full bath on main level. Easy open crank windows no more than 30 inches off of the ground. Front loading washers and dryers.

WHAT ARE THESE BUYERS LIKE?

Their housing preferences are dramatically different than their predecessors. They are savvy buyers and demand exceptional customer service. They are competitive, are not afraid of debt, are more educated and will live much longer.

DO YOU SEE THE FIT?

Our log home customers tell us the same things. Their demographics fit this age group and they want all the same things. They are also excited about the energy saving log home, it’s simple maintenance and lifetime guarantees.

IN CONCLUSION…

The retirement sector will be one of the fastest growing sectors of new home demand. The number of retirement homes sold per year will increase by 49% from 455,000 in 2003 to 680,000 by 2010. The retirement housing boom will not decline until the year 2029 when the last “Baby Boomer” turns 65.

WHAT DOES THIS MEAN TO ME AS A GASTINEAU LOG HOME DEALER?

We have 23 years of housing boom to take advantage of. Our product matches this market perfectly. The results, we have a huge opportunity in store for us. We are definitely looking forward to the future. Gastineau’s many successful dealers throughout America are more excited than ever, why not join their enthusiasm and help Gastineau meet this great business opportunity.

WHY BECOME A LOG HOME DEALER?

After having just read the information regarding the “Baby Boom” surge, you certainly can see why Gastineau has accelerated their efforts in expanding their Dealership Program. We need qualified new entrepreneurs to help us service the thousands of potential buyers that contact us annually for information on our “Oak Log Homes.”

If you are unaware, the log home industry is a small niche in the national home building industry. Log home construction constitutes 7% of the custom homes build in the U.S. annually. The reason for wanting to become part of this small, unique segment is very simple. The marketing opportunity increases since it is a small and unique segment. A good example why the log home industry is only 7% of the nation’s new home output is because of the extreme quality and high values built into the custom log home. We, at Gastineau build the industry’s finest oak log home that can withstand the test of time.

If you are looking for a proven and successful business and an opportunity to represent of America’s most respected companies, then why not join the “Gastineau Family” and help us provide our high quality homes for the best clientele in your exclusive area.

Our greatest asset is the fact that we are the world’s largest manufacturer of oak log structures. This facet alone gives Gastineau a front row seat in our industry. If you qualify to become one of our selected Dealers and become part of our family, you will be very proud of the business you develop and the clients that become your new trusted friends.

THERE ARE FOUR WAYS TO BEGIN YOUR DEALERSHIP:

How you structure your log home dealership varies, depending on your location, your lifestyle and your market.  Your dealership can start with a Log Cabin 2 Go to generate leads, you can concentrate on speculative log homes, you can have a log home as your residence and model, or you can have a free standing log home model on a well traveled road.  Contact GLH for more details on the requirements for the different options.

MARKETING ASSISTANCE

To assist the Dealer with the marketing of his first log home model, Gastineau will give the Dealer a “Quickstart Marketing Fund” equal to 10% of the model home package price. This fund will be used to provide advertising and special promotions in the Dealers primary market territory, before, during and after the construction of his original log home model. In addition, the Dealer will be rebated 5% of the cost of the log package for his model home after the delivery of his first Gastineau log package.

NATIONAL LEAD DISTRIBUTION AND GASTINEAU’S DEXTER DATABASE FILE

Dealers are provided all the sales leads existing within their exclusive protected territory that are generated by Gastineau National Advertising. These leads are provided immediately to the Dealer through Gastineau’s internet database. This proprietary database software is called the “Dexter File.” The Dealer can utilize this state of the art database from their home or office. It provides lead follow up, production of letters, tracking of customers through the sales, blueprint and shipping process and access to all Gastineau forms, logos and price lists, information on other Dealers as well as numerous other features to assist the Dealer.

COMISSIONS

GLH commissions exceed the industry’s standard. They begin with a minimum of 10% commission and can reach as high as 20% depending upon annual production and type of display home.

CO-OP ADVERTISING:

GLH provides all dealers with $3000 in co-op advertising each year. Additional 1% co-op funds are available to the dealer when his annual sales exceed $350,000.

THE MATERIALS AND ASSETS LISTED BELOW WILL BE INCLUDED WITH ALL FOUR DEALERSHIP OPTIONS

FINAL DECISION:

Once you have reviewed the Gastineau Dealership Package and thoroughly investigated it’s contents, you should contact Gastineau’s Director of Dealership by telephone (404-514-1010) to discuss any questions you might have regarding the program. When your questions have been answered and satisfied and you feel that you would like to proceed in acquiring a Gastineau Dealership, you would then complete the enclosed Dealer Application Form in detail. A personal deposit check in the amount of $1,000 payable to Gastineau Log Homes, Inc. should accompany your application. Mail to: Gastineau Log Homes, Inc., Director of Dealerships Office, c/o Sharon Ely, Assistant to Dealership Director, 10423 Old Highway 54, New Bloomfield, MO 65063. If accepted, the $1,000 deposit check will be help and credited to your Dealership Fee. If your application is not accepted your check will be returned in full.

COMPLETION PROCEDURES:

If accepted, you will receive instruction from the Dealership Office regarding dates and times for your three day Training Seminar, Included will be directions to our Home Office. As list of local hotels, motels to choose from will be provided. You will be responsible for making your own travel reservations, such as air travel, etc. If you were to travel by air, you would fly into St. Louis, Mo. Automobile rental at the airport is recommended. Our home office is approximately 135 miles west of St. Louis, MO.

The Dealership Contract will be signed and consummated in the Home Office prior to starting the Training Seminar. All dealership fees must be paid prior to attending the Training.

Any questions regarding travel, seminar schedules, etc. should be directed to Sharon Ely. Her phone number is: 800-654-9253 Extension 2255.

We are all looking forward to seeing you in Missouri.

THE STAFF AND MANAGEMENT OF GASTINEAU LOG HOMES, INC.