Flipping my 2042 for a Later Expiration Resort

[Vcorley1]

I’m in the crosshairs of making a decision around my current dvc ownership.

I have a friend looking to offload his BLT 250 point - March UY to me for $107 a point. I would be responsible for closing costs and 2024 dues. I’m not a fan of the BLT resort but I have two young kids and appreciate its proximity to MK. I also recognize this is a very good deal- this or any economic climate be damned.

I currently own a 200 point contract at BRV that I purchased during Covid Christmas for $87 per point. I love the BRV resort but my wife feels it’s a bit dated even in spite of the room facelifts. I have also mused over the 2042 expiry date that gets us to 62 years old and my children at 27 and 22. Also, whose to say there going to still like Disney at that age. BLT will hang around until I’m 80 and if my kids continue to like Disney and have kids of their own, there’s some great vacations ahead as grandparents.

The additional points on the BLT contract also addresses our need for just a few more points, as we seem to be borrowing against future years but never by more than 20-30.

What I absolutely want to avoid is carrying two contracts. I have two kids in daycare and expensive mortgage so two dvcs is not financially prudent for me. If I buy his BLT, I need to flip this BR contract. The good news is I bought cheap at $87 per, but that was cheap for then. Now, $87 would be an average price I feel. I also know ROFR could take this BLT before I get the chance to handover my check to him, so I wouldn’t sell until the deal is done.

My question is really around the upside on this. Is there any or am I just paying more for a product we may not use in our latter years? Also, how slow has the resale market become? If I’m in a position to get at BLT for $107 pp, would a BRV at $87 even move and how bad are the 2042s resales lagging? Would love to get others insights on this and if anyone has employed a similar strategy during this economic timeframe?

 

[LittleBitGoofy]

That is a good deal on BLT. I'd hesitate to buy a resort I wasn't crazy about just for more years when there may be other resorts with just as long or longer that is a resort you really do like. For me, I'm dealing with a newly developed crush on CCV. Nice long expiration date there too. Maybe you could just keep WL but change wings?

 

[AprilsZoo]

How much do you trust your friend? At $107 pp I’d say there’s definitely a very good chance of getting ROFRed. There’s no way to truly guarantee that you will avoid ROFR, but generally the higher the price per point, the less likely it is.

So if you really trust this friend not to screw you over, you could write the contract for a higher price per point. Then after the sale closes, your friend can “gift” you an amount equal to the difference between the sale price and the $107 pp that he really wants. IANAL, but as far as I know, there’s no law that says someone can’t give a friend a monetary gift after they’ve made a real estate transaction.

Now, obviously this does increase your closing costs and probably taxes, as those are figured based on the contract price. But you can do the math, and decide if it’s worth it to pay a bit more in closing costs to have avoided ROFR.

And if it ends up being ROFRed anyway… you won’t be out anything & you can be happy that your friend will make more $$ from the sale, even if you’re disappointed and sad that you didn’t get the contact for yourself.

 

[DL1WDW2]

That’s good advice. Obviously friend wants to sell his points easily and ROFR is about the easiest way .
I don’t watch the resales but it does seem to be a lot of listings moving slowly.
I would be concerned about that.

 

[DVC Doctor]

Buy BLT....no brainer and sell your BRV.

Monorail resort is really nice and in demand. Also look at the annual dues trends.

 

[Vcorley1]

Thank you folks!