Holy $@!%&^(#, Resale Lising...

[arthur06]

I am signed up for the emails from the resale brokers and received one today from **********. I always look for Dec UY contracts and noticed that on today's listings there was 9 listings for Vero all with the same number. (291 - 291H) They range in points from 300-1590 per contract. The total of all the contracts is 6855 points.

I have no way of knowing if they are all the same owner, but the way that they are listed on the email looks like they are.

Isn't there some sort of limit per resort and overall limit on DVC points that one can own?

(mods if this is too specific of information block out whatever) I am just surprised to see that many points from what looks like a single owner.

 

[ErikdaRed]

If I remember correctly the overall limit is 10000. Not sure of the single resort limit if there is one.

 

[marsh0013]

the way i read it there are 4 contracts but they made all possible combos. 2 of 300 each and 2 of 495 each for a total of 1590. still that's a lot

 

[Dean]

If I remember correctly the overall limit is 10000. Not sure of the single resort limit if there is one.

2000 per resort and 5000 per owner, total. However, I I think the only way to enforce this resale would be to exercise ROFR if you got to that amount of points. Plus a couple could double that if titled appropriately.

 

[bdoleary]

I saw the listings as well - that's a ton of points - I guess someone really liked Vero beach - there seems to be a lot of VB listings available from all the brokers.

 

[AllieV]

wow, finally found these contracts. I think marsh0013 is right. It's four contracts that the agent bundled 5 different ways (for a total of 9 listings) to tempt someone who may want a lot of points but not want to pay all those closing costs. I would think the price per point would go down with the bundles, but they didn't do that. Looks like someone spent an entire summer at VB!

 

[kendzee94]

That's only $11314 in annual dues.

 

[WilsonFlyer]

That's only $11314 in annual dues.

And only a potential $89,115 in rentals.

 

[DougEMG]

1590 points at VB would have $11,320 in dues ($7.12/point) with a potential rent of $17,490 (renting at $11/point) for a net income of $6,169.

 

[Dean]

1590 points at VB would have $11,320 in dues ($7.12/point) with a potential rent of $17,490 (renting at $11/point) for a net income of $6,169.

When you take into account time, other expenses and up front investment, that's a pretty poor return for such risk.

 

[ELMC]

When you take into account time, other expenses and up front investment, that's a pretty poor return for such risk.

I think he was just correcting the math from the previous posts, not advocating the purchase. Because you're right, as an investment, this is about as bad as they come. After 11 years of renting out all of the points you would get your money back. That's it. So for the first 11 years you are in the red. Even my local bank that is offering a paltry .8% on a savings account at least has the courtesy of letting me hold onto my principal.

 

[WilsonFlyer]

And only a potential $89,115 in rentals.

I am signed up for the emails from the resale brokers and received one today from **********. I always look for Dec UY contracts and noticed that on today's listings there was 9 listings for Vero all with the same number. (291 - 291H) They range in points from 300-1590 per contract. The total of all the contracts is 6855 points.

I have no way of knowing if they are all the same owner, but the way that they are listed on the email looks like they are.

Isn't there some sort of limit per resort and overall limit on DVC points that one can own?

(mods if this is too specific of information block out whatever) I am just surprised to see that many points from what looks like a single owner.

1590 points at VB would have $11,320 in dues ($7.12/point) with a potential rent of $17,490 (renting at $11/point) for a net income of $6,169.

Professional renters rent at $13/point for the most part. Taking that into account and unless I missed something very basic in my undergraduate work in Applied Mathematics, 6855*$13=$89,115.

I don't understand your correction.

 

[DougEMG]

Professional renters rent at $13/point for the most part. Taking that into account and unless I missed something very basic in my undergraduate work in Applied Mathematics, 6855*$13=$89,115.

I don't understand your correction.

What happened was there was a little confusion (at least I was confused) on how many points at VB were actually being sold as the contracts were being bundeled in various packages. What the maintence fees would be and what the total income after MF would be.

I was just placing all the info in one post. Don't want someone reading one line that says you can make $89,115 without all the other supporting numbers that go with it.

As for the rental rate, feel free to use whatever rental amount you like and can get. My numbers are an example only and based what I consider to be average rental rates, not best case senario.

As for buying these contracts as a rental business, no thanks, not for me. If that is what you want to do I think there are better options out there.

 

[AllieV]

Taking that into account and unless I missed something very basic in my undergraduate work in Applied Mathematics, 6855*$13=$89,115.

Before you can multiply correctly, you must first add correctly. There are 4 contracts totalling 1590 points (unless I missed something in my very basic math class in first grade). The agent listed them separately then bundled these into 5 different packages (combining these 4 contracts different ways) so as to combine closing costs on a multiple-contract purchase.

 

[disneynutz]

Companies often buy large point contracts, are we sure that it's a bundle?

Bill

 

[AllieV]

Companies often buy large point contracts, are we sure that it's a bundle?

291A Vero Beach 300 $42 Dec 301 points for 2011 (1 in holding from 2010) + 300 for 2012 + 300 for 2013. $12,600
291B Vero Beach 300 $42 Dec 347 points for 2011 (47 in holding from 2010) + 300 for 2012 + 300 for 2013. $12,600
291C Vero Beach 495 $42 Dec 480 points for 2011 + 495 for 2012 + 495 for 2013. $20,790
291D Vero Beach 495 $42 Dec 495 points for 2011 + 495 for 2012 + 495 for 2013. $20,790
291E Vero Beach 600 $42 Dec 648 points for 2011 (48 in holding from 2010) + 600 for 2012 + 600 for 2013. Two contracts, one closing cost! $25,200
291F Vero Beach 795 $42 Dec 842 points for 2011 (47 in holding from 2010) + 795 for 2012 + 795 for 2013. Two contracts, one closing cost! $33,390
291G Vero Beach 990 $42 Dec 975 points for 2011 + 990 for 2012 + 990 for 2013. Two contracts, one closing cost! $41,580
291H Vero Beach 1290 $42 Dec 1322 points for 2011 (47 in holding from 2010) + 1290 for 2012 + 1290 for 2013. Three contracts, one closing cost! $54,180
291 Vero Beach 1590 $42 Dec 1623 points for 2011 (48 in holding from 2010) + 1590 for 2012 + 1590 for 2013. Four contracts, one closing cost! $66,780

 

[princessaloha]

291A Vero Beach 300 $42 Dec 301 points for 2011 (1 in holding from 2010) + 300 for 2012 + 300 for 2013. $12,600
291B Vero Beach 300 $42 Dec 347 points for 2011 (47 in holding from 2010) + 300 for 2012 + 300 for 2013. $12,600
291C Vero Beach 495 $42 Dec 480 points for 2011 + 495 for 2012 + 495 for 2013. $20,790
291D Vero Beach 495 $42 Dec 495 points for 2011 + 495 for 2012 + 495 for 2013. $20,790
291E Vero Beach 600 $42 Dec 648 points for 2011 (48 in holding from 2010) + 600 for 2012 + 600 for 2013. Two contracts, one closing cost! $25,200
291F Vero Beach 795 $42 Dec 842 points for 2011 (47 in holding from 2010) + 795 for 2012 + 795 for 2013. Two contracts, one closing cost! $33,390
291G Vero Beach 990 $42 Dec 975 points for 2011 + 990 for 2012 + 990 for 2013. Two contracts, one closing cost! $41,580
291H Vero Beach 1290 $42 Dec 1322 points for 2011 (47 in holding from 2010) + 1290 for 2012 + 1290 for 2013. Three contracts, one closing cost! $54,180
291 Vero Beach 1590 $42 Dec 1623 points for 2011 (48 in holding from 2010) + 1590 for 2012 + 1590 for 2013. Four contracts, one closing cost! $66,780

Hey AlleiV, did you see on Fidelity's site there are currently 60 Vero Beach listings!!! Boy when you asked for "some" VB last month someone was listening.

 

[AllieV]

Hey AlleiV, did you see on Fidelity's site there are currently 60 Vero Beach listings!!! Boy when you asked for "some" VB last month someone was listening.

No, didn't see it. Checked this morning. You sure it was VB? I'm keeping an eye on some other stale contracts in case mine doesn't pass. Even made an inquiry with one agent, though I did mention I was in ROFR and only browsing as insurance.

EDIT: duh. You said 60 contracts, not a new 60-pt contract. Yeah, I was looking at all those last night. Lots of good deals for someone who wants to take a chance on VB. Several loaded 150-pt contracts asking in the low 40s.

 

[awilliams4]

Professional renters rent at $13/point for the most part. Taking that into account and unless I missed something very basic in my undergraduate work in Applied Mathematics, 6855*$13=$89,115.

I don't understand your correction.

I believe $13 is too high considering that most of the rentals would at best be for 7 month availability since far fewer rent to stay at VB versus renting to stay at WDW.