Commercial Renters Equivalence to Wall Streets Black Monday

[alexandone]

The last few weeks can be viewed as Commercial Renters Equivalence to Wall Streets Black Monday.
100,000 points of activity in a single account is unfathomable. But I guess it isn't.

Do you realize 100,000 points is enough to book BWV GV for the entire Christmas Week and both prime Easter weeks 32 times?

BWV GV (12/24 to 1/1/07)=1170
BWV GV (4/1 to 4/14/07)=1932 grand total 3102x32=99264 and still have enough points left for another Christmas Week Sun-Thur rental in BWV GV.

Total 99264+650(Sun-Thurs Christmas Week)=99914 points

With only one transfer a year... Business is going to be lean in 2007.

Now that's a stock you would've wanted to short

 

[JimMIA]

Can you imagine what it would get you in studios and one bedrooms?

 

[alexandone]

Can you imagine what it would get you in studios and one bedrooms?

Studios for those same 3 weeks would total 464.
100,000/464=215.5 Studios.
Disney would have to build a resort for this individual to conduct business!

 

[spiceycat]

100,000 points of actvity in a single account is unfathomable.

I have a big time understanding how this person got by DVC ms for so long.... but until DVC change the rules I guess they couldn't do anything.

I for one am very happy about the new tranfer rule.

It should stop these types of sharks.

 

[calypso*a*go-go]

What's really bad is that it appears most of the contracts were purchased resale, which means DVC never made a dime off of them. So, as far as MS is concerned, it's like they're doing all the work without ever being paid. I could definitely see why DVC would want to put a stop to that type of activity.

 

[Beca]

What's really bad is that it appears most of the contracts were purchased resale, which means DVC never made a dime off of them. So, as far as MS is concerned, it's like they're doing all the work without ever being paid. I could definitely see why DVC would want to put a stop to that type of activity.

Yep, I agree.....but, what's worse...DVC doesn't have to explain their reasons for ROFR'ing a contract to anyone!! They could've ROFR ALL this person's attempt to purchase once they reaced the 5,000 pt. limit. DVC is in this situation because they allowed themselves to be. And, now....we have all suffered limits on our usage because of it.

Running a timeshare means that you have to vigilant ALL the time. You are derelict in your duties when you just let everything go for a long time, and then make "sudden" effort to curb abuse. It would be like me sitting by why my daughter breaks rules for several years, and then grounding her when she is 16 for all the rules I allowed her to break from the time she was born. As my dh says, "Failure to plan on your part, does not constitute an emergency on mine."

 

[havencruiser]

Can't anybody with a lot of points still RENT them? It takes more effort to check availability etc., etc. but the market of people wanting to RENT reservations has to be greater than the market of people wanting to transfer points? Am I missing something??

 

[mochabean]

You are missing the morphing of points issue which allows these people to book rooms at 11 months out using points from other resorts. That is how they make their money.

 

[dianeschlicht]

The part I am still having a hard time understanding is how anyone could BUY 18,000 points in the first place! I thought we had a limit of 5000 total, so how did this get by the rules?

 

[JimMIA]

The part I am still having a hard time understanding is how anyone could BUY 18,000 points in the first place! I thought we had a limit of 5000 total, so how did this get by the rules?

I can understand someone being able to BUY 18,000 points, especially over a period of several years.

What I CANNOT fathom is the work required to RENT 18,000 points every year!

 

[LisaS]

I can understand someone being able to BUY 18,000 points, especially over a period of several years.

What I CANNOT fathom is the work required to RENT 18,000 points every year!

I figure she was making a profit of $80,000 - $100,000 per year. Not bad at all for a business that you conduct over the web and the phone.

 

[LisaS]

The part I am still having a hard time understanding is how anyone could BUY 18,000 points in the first place! I thought we had a limit of 5000 total, so how did this get by the rules?

According to the Orange County records, the deeds are in various family member's names, and several deeds are in the name of a family trust.

 

[CarolMN]

The part I am still having a hard time understanding is how anyone could BUY 18,000 points in the first place! I thought we had a limit of 5000 total, so how did this get by the rules?

Unless the contracts are titled exactly the same, the limitation doesn't apply - at least legally.

For example, a wife could own 5000 in her name alone, the husband could own 5000 in his name alone and they could own 5000 jointly (I think). Some contracts have been bought by trusts or other family members. I like to think of those large point owners as DVC "mini-cartels"

Anyway, apparently it is not all that tough to get by the point cap rules

I'm with JimMIA - can't quite fathom how someone would want to do all the work that renting 18,000 plus points would take. And I really can't fathom how someone could AFFORD that many points - I don't travel in those circles, LOL.

Best wishes -

 

[alexandone]

I don't believe that one person manages 18000 points. 18000 points at $9.00/point generates revenues of $162,000 annually. That's enough money to have a couple associates helping to rent those points.

 

[Steamboat Bill]

Who is this person with 100,000 points? Where did that thread start?

I am not in favor of the "one" transfer rule as I have 500 points. Perhaps something like "four" transfers per year would be a reasonable limit.

Now I may suffer if I don't use all my points in one year. I will have to find a renter that wants a large number of points. That will not be fun.
Why doesn't DVC find the abusers and shut them down rather than amke all 100,000 DVC members suffer this rule.

 

[diznyfanatic]

I don't believe that one person manages 18000 points. 18000 points at $9.00/point generates revenues of $162,000 annually. That's enough money to have a couple associates helping to rent those points.

Actually, their annual dues to the tune of about $81,000 per year must also be considered. That is only due on the points they actually own however, and not the ones they've procured via transfer and morphed.

However, I believe on eBay, they are getting considerably more than $9.00 per point in rent. Some I've looked at, were as high as $18-20 per point.

 

[cslittle999]

Who is this person with 100,000 points? Where did that thread start?

I am not in favor of the "one" transfer rule as I have 500 points. Perhaps something like "four" transfers per year would be a reasonable limit.

Now I may suffer if I don't use all my points in one year. I will have to find a renter that wants a large number of points. That will not be fun.
Why doesn't DVC find the abusers and shut them down rather than amke all 100,000 DVC members suffer this rule.

It was in this thread http://www.disboards.com/showthread.php?t=1204087 started by Dumbo17. The information came from someone on Disney legal.

 

[LisaS]

As I understand it, that person doesn't own 100,000 points but rather they ran 100,000 points in total through their account by transferring points in and using them to rent out reservations.

 

[prez65]

Actually, their annual dues to the tune of about $81,000 per year must also be considered. That is only due on the points they actually own however, and not the ones they've procured via transfer and morphed.

However, I believe on eBay, they are getting considerably more than $9.00 per point in rent. Some I've looked at, were as high as $18-20 per point.

I think I did this once before to see how it works out:
18,000 points at purchase price average of 80.00 per point 1,440,00.00
18,000 points Maint Fees average at 4.00 point 64,000.00 per year.
Selling vacations for average of 12.00 point 216,000.00 a year.

minus maint = 152,000 a year. This means it will take almost 10 years just to break even. Thats not even considering the listing fees on ebay and final value fees and paypal fees.

Am I missing something? or is this a bad Investment?

 

[Mike]

I figure she was making a profit of $80,000 - $100,000 per year. Not bad at all for a business that you conduct over the web and the phone.

But I'm sure they were paying taxes on this