Commercial Renters Equivalence to Wall Streets Black Monday

[castleri]

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


There may be even more than meets the eye here. someone has a business and makes x per year - he/she can put it in the bank and get taxable ? % or buy DVC and start a second business that doesn't require that much record keeping unless they really do follow the tax rules etc. ie. A dentist makes $101,000 that he buys 1000 points with. It is paid for and now he rents for minimum of $10 a point so has $10,000 of which he pays out $4250 in maintenance fees. He has the balance which is more than he can get in a bank account and that also will not be reported to the IRS unless he does it himself. He offers people $6-7 a point if they will have distressed points so " it is not a total loss for them" and then through transfers resulting in point morhping turns those into prime points for prime rentals - say $12-15 on ebay which now nets him the difference with no maintenance on those points and again no reported income. Yes renting can be time consuming but it could be a good deal for some if they are so inclined.
Limiting transfers back to what was stated in the original POS statements can at least stop some of the point morphing which is really the big issue when it comes to not being able to book at a certain resort within the 11 or 7 month periods. At some point selling the original contract may be the best policy to recover the original investment for these people.

 

[mochabean]

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.

You will not have to find one renter that wants a large number of points. You can rent to as many people as you want, as long as you make the reservation in their name. If you want to transfer, then yes you will have to find one person to take all your extra points.

 

[Barak's Disney]

Thats not even considering the listing fees on ebay and final value fees and paypal fees.

Well, they (the W's) will be more than happy to sell you a vacation "off auction" and subtract the cost of listing fees and final value fees from your vacation quote. Also, they don't accept paypal.

 

[prez65]

Well, they (the W's) will be more than happy to sell you a vacation "off auction" and subtract the cost of listing fees and final value fees from your vacation quote. Also, they don't accept paypal.

Yes and I said thats not including listing fees final value fees and paypal fees.

Still take you 10 years to make back your initial investment....but then I would guess you can sell your points after 10 years and that would be your profit...it just seems like a lot of work for someone who has 1.5 million to do.

I can think of better ways to invest that money and earn more of a return in 10 years even after taxes........

 

[prez65]

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


There may be even more than meets the eye here. someone has a business and makes x per year - he/she can put it in the bank and get tacable ? % or buy DVC and start a second business that doesn't require that much record keeping unless they really do follow the tax rules etc. ie. A dentist makes 101,000 that he buys 1000 points with. It is paid for and now he rents for $10 a point so has $10,000 of which he pays our $4250 in maintenance fees. He has the balance which is more than he can get in a bank account and that also will not be reported to the IRS unless he does it himself. He offers people 6-7 a point if they will have distressed points so " it is not a total loss for them" and then through transfers resulting in point morhping turns those into prime points for prime rentals - say 12-15 on ebay which now nets him the difference with no maintenance on those points and again no reported income. Yes renting can be time consuming but it could be a good deal for some jif they are so inclined.
Limitiang transfers back to the original POS statements can at least stop some of the point morphing which is really the big issue when it comes to not being able to book at a certain resort within the 11 or 7 month points. At some point selling the original points will be the best policy to recover the original investment.

I was not talking about morphing...and there is a big difference in buying 100,000 worth of points than 1.5 mil worth of points....If you have that much money to invest in DVC to make or launder money.....There are easier and better ways......

 

[Beca]

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

Best wishes -

And, what's really sad about this....it appears a lot of their points were purchased via resale. DVC didn't have to give them a reason to not sell them points when ROFR was involved. DVC could've ROFR'd every attempt to get points thru....it would only have required DVC to be aware and vigilant.


Prez....yes, I think it is a pretty bad investment...which is why I am convinced there are not that many doing it (well...that, and it would take a lot of money!!).

 

[KANSAS]

beca

all of your points are tremendously interesting+ very appreciated!!

good to hear from you again!!

 

[dianeschlicht]

And, what's really sad about this....it appears a lot of their points were purchased via resale. DVC didn't have to give them a reason to not sell them points when ROFR was involved. DVC could've ROFR'd every attempt to get points thru....it would only have required DVC to be aware and vigilant.

That's the part that still has my mind reeling. WHY does Disney not have something in place to prevent the pooling of OWNED points like that? Trusts? I don't get it. If corporations are buying points, can they then buy more than the max too? This is just another example of how Disney has let things get out of hand (like point morphing), and now they are reaping the "benefits" (read that as the direct opposite) of their errors. I just don't get how they can allow a husband and wife to hold the maximum seperately AND jointly and think that is abiding by their own rules. It seems to me, 5000 points should be for the partnership as a whole (couple OR coporate).

 

[Snarky10or11]

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?

I talked to this person on the phone two years ago. She told me they refinanced their house, and that the break even point was 11-1/2 years. All I thought was 'jeeeesh; a conservative balanced mutual fund would be a whole lot better and easier'.

 

[TammyAlphabet]

I rented from this person two years ago before I was a member. For a five night stay at OKW. I paid around 12.50 per point, but that was before I knew about the boards and renting points here. But, I had a good experience. After that stay, I knew I wanted to be a member and talked my husband into it after only two months!!

 

[prez65]

I talked to this person on the phone two years ago. She told me they refinanced their house, and that the break even point was 11-1/2 years. All I thought was 'jeeeesh; a conservative balanced mutual fund would be a whole lot better and easier'.

Agree

 

[Beca]

That's the part that still has my mind reeling. WHY does Disney not have something in place to prevent the pooling of OWNED points like that? Trusts? I don't get it. If corporations are buying points, can they then buy more than the max too? This is just another example of how Disney has let things get out of hand (like point morphing), and now they are reaping the "benefits" (read that as the direct opposite) of their errors. I just don't get how they can allow a husband and wife to hold the maximum seperately AND jointly and think that is abiding by their own rules. It seems to me, 5000 points should be for the partnership as a whole (couple OR coporate).

ITA!!!!



Beca

 

[Beca]

beca

all of your points are tremendously interesting+ very appreciated!!

good to hear from you again!!

Thanks, Kansas!!

It's good to see you around here, too!! I've missed your posts!!



Beca