Help Me With Math - Selling Resale to Buy Riv Direct

[vdangelo239]

Hello everyone,
I am genuinely looking for some help here with my logic / thought process. I am considering selling three of my resale contracts and to try and use the funds to flip them to a 150-point direct contract a Riviera. I am well aware of the Riv resale restrictions and am OK with it.

As a summary, I am a 100% resale owner with 4 contracts.

I have..

Contract 1 - Not going to sell (150 pts PVB)
Contract 2 - 50pts at PVB
Contract 3 - 50pts at BWV
Contract 4 - 50pts at SSR

With the incentives on a 150 point contract for a direct member add-on, the cost for Riviera 150 points if $28,850. I am adding onto a December use year, so they will buy back the Dec 2022 points at $20 per point, bringing the price down to $25,850.

I could then, in theory, sell the Dec 2023 points via a transfer for at-least $18 bringing the cost down another $2,700. I have a January and April trip booked already, so I do not need these Dec 2023 points - I am good to wait until Dec 2024.

This brings the effective price per point down to 154. My out of pocket cost is $23,150.

Now - can I take the three 50 point contracts and clear $20 - $22K to balance it out, gaining me Direct member benefits and a Riv deed that expires in 2070?

This is where I need help and I would love your thoughts. All three of the 50 point contracts have full 2023 and/or 2024 points - none are stripped. Two are Aug use years and the third is a Dec use year.

Poly - Could I net $8,500?
SSR - Could I net $6,500?
BWV - Could I net $6,500?

I would LOVE folks opinions - this has been a fun math game - and yes I am nuts - but after I map out the numbers this doesn't seem that crazy....thoughts?

 

[pianomanzano]

Take a look at some of the broker average resale price blog posts and/or some of the estimate tools that brokers like DVC resale market has to get a better idea. on what listing prices look like. Then take a look at the ROFR thread to see what kinds of prices are accepted. Smaller contracts generally go for more money, but I'd say $130/point is a little optimistic for SSR. $170/pt for Poly might be doable considering there's only one other Poly 50pt contract on the market.

 

[happythoughts & pixiedust]

I think if you sold all three 50 point contracts you'd probably net closer to $19,000 after you pay commissions and associated fees (estoppel fee for each contract, etc.).

To clear 20k you'd need to average about $150 per point gross sale price before commissions and fees. Seems a little high, but you could price high since they are small contracts and hope someone is looking for that use year.

 

[kneely58]

Hello everyone,
I am genuinely looking for some help here with my logic / thought process. I am considering selling three of my resale contracts and to try and use the funds to flip them to a 150-point direct contract a Riviera. I am well aware of the Riv resale restrictions and am OK with it.

As a summary, I am a 100% resale owner with 4 contracts.

I have..

Contract 1 - Not going to sell (150 pts PVB)
Contract 2 - 50pts at PVB
Contract 3 - 50pts at BWV
Contract 4 - 50pts at SSR

With the incentives on a 150 point contract for a direct member add-on, the cost for Riviera 150 points if $28,850. I am adding onto a December use year, so they will buy back the Dec 2022 points at $20 per point, bringing the price down to $25,850.

I could then, in theory, sell the Dec 2023 points via a transfer for at-least $18 bringing the cost down another $2,700. I have a January and April trip booked already, so I do not need these Dec 2023 points - I am good to wait until Dec 2024.

This brings the effective price per point down to 154. My out of pocket cost is $23,150.

Now - can I take the three 50 point contracts and clear $20 - $22K to balance it out, gaining me Direct member benefits and a Riv deed that expires in 2070?

This is where I need help and I would love your thoughts. All three of the 50 point contracts have full 2023 and/or 2024 points - none are stripped. Two are Aug use years and the third is a Dec use year.

Poly - Could I net $8,500?
SSR - Could I net $6,500?
BWV - Could I net $6,500?

I would LOVE folks opinions - this has been a fun math game - and yes I am nuts - but after I map out the numbers this doesn't seem that crazy....thoughts?

Don't forget the broker will take around 10% on the sale.

 

[happythoughts & pixiedust]

Also, to maximize your return on your new direct purchase - open a few new credit cards to get multiple sign up bonuses - cash, miles, hotel points, whatever is most valuable to you. We did that when buying Disneyland Hotel.

 

[aceshigh73]

Probably not a bad idea, I'd say the 50 BWV will get near $145/pt on dvcresalemarket. Lord knows those 50pointers go in a matter of days, if not hours. SSR dont think will fetch the same premium.
Poly i havent been following.

Question for you, why is it you have 3 small contracts to different resorts? I started with a 50pointer at BWV and quickly realized it wasnt enough points, so we got another 100 in the same UY.

Good luck!

 

[RoseGold]

Why are you buying now if you are selling the points for the next two years? Just rent out the points you have, and buy in two years.

 

[vdangelo239]

Probably not a bad idea, I'd say the 50 BWV will get near $145/pt on dvcresalemarket. Lord knows those 50pointers go in a matter of days, if not hours. SSR dont think will fetch the same premium.
Poly i havent been following.

Question for you, why is it you have 3 small contracts to different resorts? I started with a 50pointer at BWV and quickly realized it wasnt enough points, so we got another 100 in the same UY.

Good luck!

It’s a good question. I wanted to pay cash for all my contracts - started with 150 and then added 50 more at Poly. Then I added 50 at BWV so we could get in at 11 months. The last 50 at SSR was insanely cheap and was for my wife and I to do a Rundisney weekend a year. They all have a purpose

If I could go back in time - I may have bought differently - but that’s why and largely because I wanted to do all cash.

 

[vdangelo239]

Why are you buying now if you are selling the points for the next two years? Just rent out the points you have, and buy in two years.

I would be selling back 2022 points I don’t need and 2023 points. I have two trips booked in 2023 already so I don’t need either set of pts. Fair question though

 

[vdangelo239]

Probably not a bad idea, I'd say the 50 BWV will get near $145/pt on dvcresalemarket. Lord knows those 50pointers go in a matter of days, if not hours. SSR dont think will fetch the same premium.
Poly i havent been following.

Question for you, why is it you have 3 small contracts to different resorts? I started with a 50pointer at BWV and quickly realized it wasnt enough points, so we got another 100 in the same UY.

Good luck!

And Thank you!

 

[Genie+]

I’m going to show the minimums I think they could get with some patience, then net after 10% broker fee.

Poly 50pts Aug UY $160pp - $8,000 - $7,200

SSR 50pts Aug UY $120pp - $6,000 - $5,400

BWV 50pts Dec UY $140pp - $7,000 - $6,200

$18,800 with an average toward of $140pp toward your RIV $154pp cost. It’s possible you average closer to $150pp but that would still leaving you kicking in $1,000. I say close enough! Who knows, 50pt contracts often get extra when the right buyers need them.

 

[vdangelo239]

The other number at play here is I would save $1,500ish when I renew my APs since I could get the Sorcerer vs the Incredipass my family of 5 has now.

 

[RoseGold]

I would be selling back 2022 points I don’t need and 2023 points. I have two trips booked in 2023 already so I don’t need either set of pts. Fair question though

Let me try again. Why are you buying now when you don't need the points until 2024 or 2025? Buy direct then, I'd rather buy Poly2 over RIV anyway.

Poly2 will have a much longer contract for a bit more, much better location. And you aren't in a hurry to buy.

Historically, the best pricing is existing member pricing at launch.

Especially right now, locking down five figures for two years is not something I want to do if I don't have to.

 

[vdangelo239]

Let me try again. Why are you buying now when you don't need the points until 2024 or 2025? Buy direct then, I'd rather buy Poly2 over RIV anyway.

Poly2 will have a much longer contract for a bit more, much better location. And you aren't in a hurry to buy.

Historically, the best pricing is existing member pricing at launch.

Especially right now, locking down five figures for two years is not something I want to do if I don't have to.

Appreciate the insight - I was buying now due to the promos available...but after talking with the family (kiddos included) we came to the exact conclusion you just laid out.

We may do this, but if we do it, we are going to do it for Poly2 when it launches.

No one in the family wanted to give up 11 months at BW or the extra 50 fun points we have at Poly 1.

I appreciate everyone's insight - and I will revisit this equation when Poly2 opens