Corporate purchase?

Discussion in 'Purchasing DVC' started by Dividends, Oct 1, 2013.

  1. Dividends

    Dividends Earning My Ears

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    Can i purchase DVC through a corporation?


    That would eliminate any financial problem that might occur(worst case scenario), corporation goes bankrupt.

    Thx
     
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  3. erionm

    erionm DIS Veteran

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    Yes. Corporate Member Types from the member website:
     
  4. Dividends

    Dividends Earning My Ears

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    Thank so much
     
  5. sivertcf

    sivertcf Earning My Ears

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    First off, a big thanks to everyone here. I've been reading a lot over the last few weeks while I consider buying DVC.

    I am wondering about this corporate ownership thing&

    Can the corporation assign new "officer" and "affiliate" as time goes by?

    -=-=-

    The resale market is hurt by limitations placed on resale (-vs- direct purchase) ownership.

    Would it not be possible to register an LLC which owns my DVC property? Then, when I go to sell, I just sell the LLC. The LLC names the new owner as its new officer. Because the LLC is still the original owner of the property, it is still a direct-purchase property.

    Also, I think a sale could be made without ROFR.

    Would this work?
     
  6. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    Possibly but take a step back and consider your ultimate goal. Most people who are knowledgable enough to consider resale in the first place realize that the trading options are virtually worthless.

    How much of a premium do you think you're going to get when all you're offering is the ability to overpay for a Disney Cruise or non-DVC hotel stay? Depending on the amount of points you hope to purchase, it may not even justify the cost of establishing and maintaining the LLC.

    As for ROFR, that's mostly a buyer problem rather than a seller problem. The seller gets his money one way or another. I don't see where avoiding ROFR provides you with any benefits.

    Consider that you may run into difficulties with brokers when it comes time to sell. The Timeshare Store sells DVC contracts...they don't sell LLCs. And there are buyers who want to purchase a DVC contract...not an LLC. No matter how beneficial you make it seem.

    Lastly, it seems that this would only work if you sell your entire point holdings all at once. If, over time, you purchase 3 contracts totaling 500 points, your plan will only work if you find a buyer for the entire LLC with its 3 contracts and 500 points.
     

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