Disney ROFR's BCV, BWV, CCV, BRV, SSR, and VB!

[pkrieger2287]

@pkrieger2287

Didn't want to ask over on the ROFR thread so I thought I'd ask here. How many points was the 1 BRV buyback for?

Looks like it was a loaded 210 pointer!

 

[Patmcpsu]

In the annual owner's meetings, it may be worth asking the associations what the point of ROFR buybacks is. I don't think Disney ever gave an actual reason as to why they ROFR.

Would associations even be the ones making ROFR decisions?

 

[Brian Noble]

The point is to be able to re-acquire inventory without having to bid competitively for it, and with visibility into the entire market.

And it is not the associations. It is DVD, the developer/sales arm.

 

[MSUsnee]

Looks like it was a loaded 210 pointer!

Uh oh, we’re waiting on an ROFR decision on a loaded 200 pointer for BRV that was submitted a couple weeks ago. Hopefully they got all they needed with that one

 

[Father-of-two-princesses]

I'm in the same boat and my price point is quite low. Pretty sure if they don't take mine then last month's was a one off! Fingers crossed for the both of us! This would be my first resale contract.

Uh oh, we’re waiting on an ROFR decision on a loaded 200 pointer for BRV that was submitted a couple weeks ago. Hopefully they got all they needed with that one

 

[MSUsnee]

I'm in the same boat and my price point is quite low. Pretty sure if they don't take mine then last month's was a one off! Fingers crossed for the both of us! This would be my first resale contract.

We found out today that ours passed after being submitted on 7/18. Hopefully you get good news soon

 

[Father-of-two-princesses]

We found out today that ours passed after being submitted on 7/18. Hopefully you get good news soon

Congrats!! Hoping we pass as well!

 

[dvc lover 1970]

I agree that it is tied to the 25 point direct. I think there are many who would opt for a 25 BCV or BWV contract for a weekend of food and wine. Not surprised at CCV either - I think that is one of the best resale values for the years, point chart and legacy 14 resorts. Also not surprised that no poly was taken since it is in active sales. Now is probably the best time to pick up poly resale

 

[airjay75]

The folks on the latest episode of DVC Show podcast noted something else about ROFR activity that had not occurred to me before. Apparently, when Disney buys back points through ROFR to resell them, they can change the UY, but they cannot change the specific unit of the DVC resort to which the points belong. And, if someone wants to buy direct points at a certain DVC resort in a certain contract amount, all of those points would have to be at the same specific unit. So, if Disney currently has 100 points from Unit 1A of XYZ resort, but they have someone who wants to buy a 150-pt contract, they would need to buy another 50 points from Unit 1A of XYZ resort to be able to resell it as a 150-pt contract. That could go a long ways to explaining why Disney doesn't simply buy back the lowest cost/point contracts at any given resort. They likely have to cluster their point buy backs at the same units in order to have a pool of enough points to meet demand.

What would be interesting to know is just how many direct points at "sold out" resorts they keep on hand vs. when they go out to exercise ROFR for new demand.

 

[Patmcpsu]

The other theory they mentioned (I think specific to Jeff) is that Disney wants to ROFR specific units in Old Key West to create a block of the resort for the extended 2057 contracts. It makes sense to a point, but I think that's pretty far-fetched for the following reasons:

• The unit number on the deed doesn't have any relation to where you physically stay.
• You'll never be able to fully ROFR all the 2057 contracts which have unit numbers outside of "the 2057 block".
• If there are legal issues with every single unit being partially-expired at 2042, I could see DVC's only option being a goofy fire sale on new, direct contracts which have 15 year lifespans. The other option is DVC saying "screw it" and auto-extending all the 2042 contracts, but I see that being very unlikely (and not legally possible, in my amateur opinion).

Does anyone who extended their OKW contract see contract language such as "At 2042, the unit number on your deed is subject to change"?

 

[Mikey15]

The other theory they mentioned (I think specific to Jeff) is that Disney wants to ROFR specific units in Old Key West to create a block of the resort for the extended 2057 contracts. It makes sense to a point, but I think that's pretty far-fetched for the following reasons:

• The unit number on the deed doesn't have any relation to where you physically stay.
• You'll never be able to fully ROFR all the 2057 contracts which have unit numbers outside of "the 2057 block".
• If there are legal issues with every single unit being partially-expired at 2042, I could see DVC's only option being a goofy fire sale on new, direct contracts which have 15 year lifespans. The other option is DVC saying "screw it" and auto-extending all the 2042 contracts, but I see that being very unlikely (and not legally possible, in my amateur opinion).

Does anyone who extended their OKW contract see contract language such as "At 2042, the unit number on your deed is subject to change"?

I too am failing to see what the benefit of a “block” would be in this context, but more generally I believe OKW’s unique split-expiry is reason enough for Disney to continue to ROFR it over time.

Disney’s never going to extend people’s 2042 contracts for free… but they also probably don’t want that property to be half cash rooms in 2042 & beyond. Everything they buy back in the next 16 years for $80-$100 and sell at ~$150 (depending on incentives) is both a tidy profit and a smoothing out of the 2042 situation.

 

[Sandisw]

The other theory they mentioned (I think specific to Jeff) is that Disney wants to ROFR specific units in Old Key West to create a block of the resort for the extended 2057 contracts. It makes sense to a point, but I think that's pretty far-fetched for the following reasons:

• The unit number on the deed doesn't have any relation to where you physically stay.
• You'll never be able to fully ROFR all the 2057 contracts which have unit numbers outside of "the 2057 block".
• If there are legal issues with every single unit being partially-expired at 2042, I could see DVC's only option being a goofy fire sale on new, direct contracts which have 15 year lifespans. The other option is DVC saying "screw it" and auto-extending all the 2042 contracts, but I see that being very unlikely (and not legally possible, in my amateur opinion).

Does anyone who extended their OKW contract see contract language such as "At 2042, the unit number on your deed is subject to change"?

I did not exchange but from what I have found out is that because this is a deeeded interest, and the points are associated with a specific unit, the owner would need to sign a new deed to a new unit.

Now, It’s semantics and if in 2042 DVC wants to cluster, they can offer a small token fee to owners to do that.

But, they’d also need to play jenga to find owners who all agree to switch to get them to fit perfectly into 100% of a unit.

Not impossible but not sure if it would make a lot of sense?

What I did find though is that the multi site POS has specific language as to what happens for those original owners who did not extend.

Some have wondered, but at least we know what DVDs plan is…it states if you didn’t extend the deed, you expire in 2042.

Not sure when that was added, but it is there now!