Builder sets company record in home sales

EAST COUNTY — Medallion Home founder Carlos Beruff and company executives thought a sales goal of $85 million seemed reasonable, perhaps even achievable, for 2013.

Each year, Beruff and his team assess a multitude of factors — projections of how many homes will sell within the company’s developments and what the average price will be for the homes they offer, for example — to come up with a number they will strive to achieve.

But Medallion Home did not just hit the goal it set for 2013; it surpassed it by $15 million.

The company closed out 2013 by breaking yearly company records in sales, with an increase of 25% from 2012.

“In October, we realized we were going to surpass the goal,” Beruff said. “It was just sort of fun to get to the $100 million (mark).”

Over the last four-and-a-half years, Medallion Home spent $76 million in acquiring land. Its business plan was to pay money to make money by strategically choosing land in areas, such as East County, it hoped would attract homebuyers, Beruff said.

He saw the money as an investment.

Beruff later would use the earnings obtained from the projects built on the land to purchase more land, build more homes and continue the cycle. He hopes those efforts will create a sustainable future for Medallion.

“To grow a company, you have to grow every year,” Beruff said. “You make money and use it to gain a bigger footprint each year.”

He is pleased not only with 2013’s profit, but also with his company’s ability to avoid taking out loans and having to pay interest on the money. Leaving out the middleman kept the profits circulating back into the business.

“The reason we have been able to succeed is because we simply have an insignificant amount of debt,” he said. “When you don’t have debt, it’s much easier to survive, because you don’t owe anybody money; essentially, you are your own bank.”

Beruff credits the highest yearly sales number in his books thus far to marketing, his experience and longevity in the East County and sales of more higher-priced homes. Homes in the $330,000 range sold the most last year and helped Medallion reach its goal.

Medallion Home will break ground on three projects in 2014.

“That’s where money comes from — continuously offering new products gives us the money to keep going,” Beruff said. “The recovering economy plays a role, too. When recovery starts taking place, it happens in quality areas. Manatee and Sarasota counties have that quality.”

Contact Amanda Sebastiano at [email protected].