100 points at BLT!

[work2play]

I was talking to a relative about being disappointed in not being able to become a DVC member by buying 100 points at BLT. She really wants us to join and suggested that since she is a member, she could buy the 100 point contract and sell the contract to me....

Does this make any sense? I am sure like any other real estate transaction, that you have to use a real estate agent to handle the transaction, they will want a commission to assist... Also, is there a holding period that you have to own the contract before you are allowed to sell it??

Anyone had any experience transferring/selling a contract to another person they knew? I assume that if I paid her $115 a point, that Disney would not ROFR the sale?

 

[browniemtb]

I guess it could work but you would have to go through ROFR. There will be fees associated with selling that you may be able to compensate relative for. I wish you luck........keep checking resales that are already out there as well.

 

[5forDiz]

I am under the impression that minimum buy-in is 160 pts for a new member on direct purchase through Disney, however, you may want to give DVC guide a call and find out exactly what is happening at the moment.

jmho, but by the time you & your friend work out the particulars on their purchasing 100 BLT pts for you and then either arranging the sale through a broker or attempting to do all the paperwork, etc. on you own (which some have done) you still have no guarantee that this sale will pass Disney's Right of First Refusal (ROFR) whereby they may step in and purchase the points back - of course they may waive ROFR but BLT is their latest/newest DVC at WDW and even if priced at $115 Disney may buy it back because they might not want prospective buyers purchasing BLT points just yet on resale market. The thing is there really is no way to tell what Disney may do so if you & your friend have the patience & inclination to give it a shot and hope for the best then give it a try but imho I'd look into what the previous poster here suggested to you regarding checking out resale market; just taking a quick look at the board sponsor The Timeshare Store's listings I see a number of 50 pt contracts at various resorts, that probablly have a greater chance of passing ROFR & get you into DVC and then as a member you can purchsae your BLT points (or points at any other DVC resort) directly through Disney at 25 points minimum on cash purchase or 50 points minimum if you'd like Disney's financing.

Check out this thread by Donald Is #1 to get a better idea of what size resale contracts at particular resorts & prices have recently made it through or not made it through ROFR ( post #612 on page 41 is as of March 11 )

http://www.disboards.com/showthread.php?t=1960185&page=41


Best wishes to you and hope that it all goes well on what you decide

 

[WilsonFlyer]

So you say your relative is giving you $125/point. Disney's option. What they actually pay is between you and the seller as long as Disney had their chance. If they buy it, you turned a profit and we all learn a lesson.

It appears that it would be extremely hard for Disney to prevent a sale between familiar parties barring paying too much for the right to take it back.

What am I missing?

 

[cheezNE1]

Maybe they can buy it and put your name in it. Then later on down the road, they they can take their names out or something.

 

[RobDoc]

So you say your relative is giving you $125/point. Disney's option. What they actually pay is between you and the seller as long as Disney had their chance. If they buy it, you turned a profit and we all learn a lesson.

It appears that it would be extremely hard for Disney to prevent a sale between familiar parties barring paying too much for the right to take it back.

What am I missing?

You are advocating fraud.

Submitting a falsified offer for ROFR could consitute an illegal action against the seller. ROFR gives Disney the opportunity to purchase the contract at the same terms as the accepted offer and the consequences for falsifying that legal transaction could end up with both seller and buyer with some costly problems as a result.

While some may accept that risk to save a few hundred dollars, most would not want the risk or the expense of defending such actions.

 

[work2play]

Well just to be clear, I am not talking about a fraudlent transaction. I would really pay my relative the $115 per point that I stated in my original post. I just don't want 160 points worth of BLT maintenance costs per year when I only want 100 points. It seems crazy to me that they require an arbitrary minimum purchase when you can buy a 25 point resale and become a member that way!

 

[Sandisw]

My suggestion would be for your relative to call Disney and ask what the process is for her to add on a contract with your name. Sometimes, when the names on the contracts are titled different from the original ones, they make you buy a new contract (and thus trigger the 160 minimum).

If Disney says she can do an add on with your name, and the two of you want to get into a contract together, then you would not be breaking any of the rules.

The contract would be jointly owned. At some point, you would have to find out from Disney how to remove one of the owners. I can't believe that Disney does not have a process in place for this.

Personally, this is the only route I would take. I do think that if you tried to have the member just buy the 100 point contract, and sell it, Disney might pick it up for ROFR since they may not want BLT contracts sold on resale yet at those low levels.

Good luck!!!

 

[Mickey'sApprentice]

I would suspect that BLT resales with 100 points will come online within the next 6 months to a year.

Be patient.

 

[RobDoc]

My suggestion would be for your relative to call Disney and ask what the process is for her to add on a contract with your name. Sometimes, when the names on the contracts are titled different from the original ones, they make you buy a new contract (and thus trigger the 160 minimum).

If Disney says she can do an add on with your name, and the two of you want to get into a contract together, then you would not be breaking any of the rules.

The contract would be jointly owned. At some point, you would have to find out from Disney how to remove one of the owners. I can't believe that Disney does not have a process in place for this.

Personally, this is the only route I would take. I do think that if you tried to have the member just buy the 100 point contract, and sell it, Disney might pick it up for ROFR since they may not want BLT contracts sold on resale yet at those low levels.

Good luck!!!

Any add-on will need to be titled exactly the same as the original master contract. Since it doesn't sound like the OP is on the master contract, the relative could add-on and then later the OP could be added to the add-on contract. This would require a deed change - and there would be a cost to do so, but it can be done an the OP would then be a DVC member. The relative could later be taken off the title (another deed change) and the contract would be solely in the OPs name.

The add-on could also be sold to the OP and would just need to go thru ROFR. It would likely pass for the same amount paid by the relative and the relative would not be out any money, Disney would not exercise ROFR and the OP could end up with the 100 points desired - without doing anything illegal.

 

[WilsonFlyer]

You are advocating fraud.

Submitting a falsified offer for ROFR could consitute an illegal action against the seller. ROFR gives Disney the opportunity to purchase the contract at the same terms as the accepted offer and the consequences for falsifying that legal transaction could end up with both seller and buyer with some costly problems as a result.

While some may accept that risk to save a few hundred dollars, most would not want the risk or the expense of defending such actions.

Just for the record, I wasn't advocating anything. I was simply laying out a scenario. You are right, of course in your assessment of my scenario. My bet would be it's been done before.

 

[speedyf]

I think it's do-able...

The family member that is a DVC member purchases 100 points at $112 per point less the $5 per point discount (so effectively $107 per point) plus receives either a 3 night cruise or developer points. Since it's through Disney, the member would not pay closing costs...correct?

The family member then sell the 100 points to the original poster at $115 per point (making an $800 profit). If Disney ROFR's, the family member still makes the $800 profit plus gets the developer points or cruise out of the deal. If they don't ROFR, the original poster gets his 100 points for $11,500 plus closing costs (I would say around $12,000 total after closing costs). It's still beats paying $107 per point to Disney for 160 points for a total of $17,120.

I see it as a no-lose situation for the DVC owner....he makes $800 and gets the Developer Points or the cruise. Even if the original poster would decide to back out of the deal, I would think the 100 pt contract would sell at $107per point as a resale without a problem.

The only thing I can see that would prevent the whole deal from happening would be if Disney has some type of clause in the contract for add-ons that they can't be sold for a certain period of time.

Speed

 

[DisneyDriver]

Would the seller have to pay capital gains on the $800 profit?

 

[WilsonFlyer]

Would the seller have to pay capital gains on the $800 profit?

Absolutely.

 

[mugsmax]

That is crazy

 

[WilsonFlyer]

That is crazy

????

 

[work2play]

I think we must be missing something or wouldn't we be seeing some of these 100 point contracts for resale now? If I were already a member, I would consider buying the add-on for the incentives and reselling the contract.. What is the resale cost to the seller? The standard 6% commission? That would put it at around $650? For a sale at $107/point... Looks like a good deal for a 3 night cruise for 4 people!

I'll be looking on the resale websites! A September use year would be great! :

 

[WilsonFlyer]

I think we must be missing something or wouldn't we be seeing some of these 100 point contracts for resale now? If I were already a member, I would consider buying the add-on for the incentives and reselling the contract.. What is the resale cost to the seller? The standard 6% commission? That would put it at around $650? For a sale at $107/point... Looks like a good deal for a 3 night cruise for 4 people!

I'll be looking on the resale websites! A September use year would be great! :

Members have always been able to buy 100 point contracts as add-ons and these can be sold via resale. Nothing earth-shattering here.

 

[disneydawn6]

At Disneyland you may buy a 100 point contract at both BLT and AKV for a master contract... Give them a call......

 

[work2play]

I think the way that works is that they are selling 100 point contracts at AKV or SSR, but not at BLT. I think you can buy 100 points at AKV and then add on 100 points at BLT. But they will not sell you a 100 point contract at BLT unless you are already a member....