Question about buying a contract with banked points

[DisneyLoverUSA]

Let me give you guys the scenario and maybe you can answer my question. We are thinking about buying an OKW contract 150 points. It has 150 banked points from 2010, all 2011 points and all 2012 points.

Those 2010 points that were banked in 2011 expire on Sept 2012, right?

That means they either have to be used or lost by September 2012?

Do they have to be USED by Sept 2012 or does something have to be booked with those points by Sept 2012? Can the reservation using those banked points that expire on Sept 2012 be used for a vacation that would occur in OCTOBER 2012? Or no? They have to actually be USED before the expiration date?

Does that make sense what I am trying to ask? I hope so. It makes sense to me asking it.

 

[Dean]

Let me give you guys the scenario and maybe you can answer my question. We are thinking about buying an OKW contract 150 points. It has 150 banked points from 2010, all 2011 points and all 2012 points.

Those 2010 points that were banked in 2011 expire on Sept 2012, right?

That means they either have to be used or lost by September 2012?

Do they have to be USED by Sept 2012 or does something have to be booked with those points by Sept 2012? Can the reservation using those banked points that expire on Sept 2012 be used for a vacation that would occur in OCTOBER 2012? Or no? They have to actually be USED before the expiration date?

Does that make sense what I am trying to ask? I hope so. It makes sense to me asking it.

Travel will have to be completed by the last day of the UY, for an Oct UY, that'd be the 30th of Sept. Points are counted as used day by day on arrival. so the night of 30 Sept would be in the 2011 UY this year for an Oct UY. The exception would be for certain exchange options but many of those don't apply to resales anymore.

 

[DisneyLoverUSA]

That's what I was thinking. I wanted to make sure I was understanding it correctly.

 

[dbs1228]

We had the same thing with a resale and we were thinking about doing a quick summer trip to use the points, then our plans changed and we ended up doing a 2 week Europe trip instead.

I decided to rent out the points, was kind of nervous, but went for it. Within 2 hours of listing I found a renter, had several conversations with him, and 4 days later I had 1/2 the money in my account he had a BWV ressie and the remainder of the money was in my account by 7/1. I had a contract with everything spelled out - it was a very smooth transaction and the best part was by renting out the points it brought my PP cost down by 10.00 right off the bat!!! (I got to put 1300.00 towards the purchase price from the rental). Enjoy

 

[DisneyLoverUSA]

We had the same thing with a resale and we were thinking about doing a quick summer trip to use the points, then our plans changed and we ended up doing a 2 week Europe trip instead.

I decided to rent out the points, was kind of nervous, but went for it. Within 2 hours of listing I found a renter, had several conversations with him, and 4 days later I had 1/2 the money in my account he had a BWV ressie and the remainder of the money was in my account by 7/1. I had a contract with everything spelled out - it was a very smooth transaction and the best part was by renting out the points it brought my PP cost down by 10.00 right off the bat!!! (I got to put 1300.00 towards the purchase price from the rental). Enjoy

If we end up making an offer on this contract and getting it we would have 150 banked points from 2010 that would have to be used by August (Sept user year) so we would either try to rent them out last minute or take a little May trip so they don't get wasted. The big selling point for me on this contract is it has all the 2011 points and has all the 2012 points coming. That was my biggest desire in a contract.

I am so new at this I am really nervous at the thought of trying to rent my points out to another person not knowing what I am doing. I might try a broker if it will make renting them out last minute easier.

DH is calling the bank today to make sure they can give us the money before we make an offer.

If for some reason the contract we are looking at is gone by the time the bank approves us (usually takes half a day day for approval) then we will just keep our eyes out for something similar.

I am looking forward to getting DVC. I am just unsure of what kind of loan that would be in buying a timeshare. If it would be like a little home mortgage loan or if we would just have to go with a signature loan. DH just bought a Harley and got money from the bank for it. The motorcycle is collateral. There really isn't good collateral in buying a timeshare. But a signature loan doesn't require collateral so that may be what we have to do. But that is a whole other subject all together.

 

[DisneyLoverUSA]

Is there a sticky or a thread about the process of what to do when you are wanting to rent out your points to someone? Like instructions on how to do it, how to get payment, cancellation procedure or whether or not you can even cancel once you book the ressie for them...

 

[GrnMtnMan]

Is there a sticky or a thread about the process of what to do when you are wanting to rent out your points to someone? Like instructions on how to do it, how to get payment, cancellation procedure or whether or not you can even cancel once you book the ressie for them...

No sticky that I know of.

I don't think anybody that rents points allows for cancellations by the renter.

You can take payment any way you want....its a private contract between two individuals. There's really very little risk on the owner's part....the owner maintains control over the reservation up until the moment of check-in, so if anything funny happens with payment, the owner can just cancel the reservation and have the points put back in his/her account (possibly in holding status, depending on when the cancellation is made).

I bought a contract just like the one you are describing and rented-out the 2010 points. I took a check from the renter beacuse there was enough time between booking and the actual trip, that if anything funny happened with payment, I still had time to get my points back and rent them to someone else.

The only risk the owner really has with renting points is if a renter damages a unit and skips out on the bill.

 

[bumbershoot]

I am looking forward to getting DVC. I am just unsure of what kind of loan that would be in buying a timeshare. If it would be like a little home mortgage loan or if we would just have to go with a signature loan. DH just bought a Harley and got money from the bank for it. The motorcycle is collateral. There really isn't good collateral in buying a timeshare. But a signature loan doesn't require collateral so that may be what we have to do. But that is a whole other subject all together.

We bought direct, and got a loan from Disney, but all I've ever read about loans for resale is that you either get a personal loan or a home equity loan. And the latter is not the greatest idea in the world (I'm sure that some people can do it without a worry in the world, I have relatives like that...but others could get into horrible trouble if something went wrong financially, and then having timeshare linked to HOUSE can be disastrous). But you're not going to get a mortgage loan for a timeshare from an outside source, from everything I've ever read.

 

[DisneyLoverUSA]

Thanks. Yes the lady at the bank said it would be a signature loan. We made an offer on the contract so I am crossing my fingers.

 

[dbs1228]

Good luck, and check out the rent/trade board here on Dis, I think they do have a little bit of info there. I made my rental non-refundable final payment as I said was July 1st and they have a mid Sept trip. I did let the renter know if he had to make a change I would work with him but let him know the points did expire Sept 30. He paid me by Chase quick pay, I set up a account on my end, gave him my screen name and within 2 days the money was in my cking account. He suggested doing it this way it made him feel better to be able to use his credit card to protect himself.

Again good luck, keep us updated!

 

[Dean]

Thanks. Yes the lady at the bank said it would be a signature loan. We made an offer on the contract so I am crossing my fingers.

Pay it off as fast as possible. Realize the interest will not be deductible. See what their rate is, there is a company that loans on timeshares that would be written as a mortgage and would be deductible. While I think it's too risky, a HELOC would be a much lower rate and would also be deductible in most situations.

 

[DisneyLoverUSA]

I'm not sure what the interest rate on a signature loan is. My DH just bought a Harley and got the money from the bank and he is paying 2% on that loan.

He will pay it off next March when he gets his taxes back. His taxes this year are going to pay off my car. SO we will only pay one year of payments on it. (the DVC that is)

 

[Dean]

I'm not sure what the interest rate on a signature loan is. My DH just bought a Harley and got the money from the bank and he is paying 2% on that loan.

He will pay it off next March when he gets his taxes back. His taxes this year are going to pay off my car. SO we will only pay one year of payments on it. (the DVC that is)

For simply a signature loan, likely 10-15%. Now if you have CD's or other special considerations, they might give it to you for a lot less. I wouldn't consider financing such a luxury purchase while also financing an expensive toy but that's me.

 

[Metr0star1]

I'm confused at first glance...

 

[DisneyLoverUSA]

We have had a few signature loans in the past and they were never 10 or 15%. The highest one was less than 8 if I remember correctly. It might have even been 6 but that was a few years ago. Not sure what they are now but I doubt it jumped to 15% in a few years.

Financing DVC to be paid off one year from now is no big deal since BOTH our vehicles just got paid off today. The only note my DH has right now is his Harley payment. NO car payments any more.

And he will only pay on the DVC for one year and then pay it off next March.

Our offer was accepted today!! I am so excited!!

 

[Dean]

We have had a few signature loans in the past and they were never 10 or 15%. The highest one was less than 8 if I remember correctly. It might have even been 6 but that was a few years ago. Not sure what they are now but I doubt it jumped to 15% in a few years.

Financing DVC to be paid off one year from now is no big deal since BOTH our vehicles just got paid off today. The only note my DH has right now is his Harley payment. NO car payments any more.

And he will only pay on the DVC for one year and then pay it off next March.

Our offer was accepted today!! I am so excited!!

You likely had special considerations at your bank or CU. Timesharelending.net is 12.9% or 13.9% depending on downpayment. DVC is around that as well but I'm sure others will know the specific number.

 

[ColonialMouse]

Let me give you guys the scenario and maybe you can answer my question. We are thinking about buying an OKW contract 150 points. It has 150 banked points from 2010, all 2011 points and all 2012 points.

Those 2010 points that were banked in 2011 expire on Sept 2012, right?

That means they either have to be used or lost by September 2012?

Do they have to be USED by Sept 2012 or does something have to be booked with those points by Sept 2012? Can the reservation using those banked points that expire on Sept 2012 be used for a vacation that would occur in OCTOBER 2012? Or no? They have to actually be USED before the expiration date?

Does that make sense what I am trying to ask? I hope so. It makes sense to me asking it.

We just started ROFR on two September UY contract. One thing we did was ask the sellers to bank the 2011 points before we signed the contract and they were sent for ROFR. That way if something takes a bit longer than expected, we don't lose the ability to bank them and have to use both the 2010 and 2011 points in 3 months. Just an idea since your situation sounds similar.

Bruce

 

[DisneyLoverUSA]

We just started ROFR on two September UY contract. One thing we did was ask the sellers to bank the 2011 points before we signed the contract and they were sent for ROFR. That way if something takes a bit longer than expected, we don't lose the ability to bank them and have to use both the 2010 and 2011 points in 3 months. Just an idea since your situation sounds similar.

Bruce

I asked the lady at the real estate office we used (the one that the name shows up bleeped out when you type it on here) to please ask the woman to go ahead and bank the 2011 points. It wasn't part of the contract but once I get a copy of the sellers side of the contract emailed to me I am going to call the real estate agency AGAIN and remind her to please call the lady and MAKE SURE she goes ahead and banks the 2011 points.

We are already going to be doing the pee pee dance on those 2010 points that have to be used by the end of August. But the lady at the real estate office said she has someone who will take ALL the 2010 points off our hands for $5 a point. SO that is probably what we will do so those points don't just go to waste. We can't use them because we won't even have access to the points until mid May and we aren't going to Disney during the summer. EVER. =)

 

[juncker]

Let me give you guys the scenario and maybe you can answer my question. We are thinking about buying an OKW contract 150 points. It has 150 banked points from 2010, all 2011 points and all 2012 points.

Those 2010 points that were banked in 2011 expire on Sept 2012, right?

That means they either have to be used or lost by September 2012?

Let me share our story as if was very similar to yours and I was surprised how the points were handled. We bought 160 points SSR resale last year Dec UY. Contract was fully loaded with 160 2009 points banked, all 2010 and 2011 points as well. Knowing that we had points that had to be used in the next 10 months, we made plans to visit SSR shortly after buying. When we finally closed and got online, my points were loaded as follows: 0-2009 points, 320-2010 points, and 160-2011 points. The 2009 banked points came over as 2010 points and it clearly stated that all 320-2010 points were available to be banked. That would have given us another year to plant a trip.

I'm so glad that we went soon after closing though. That's when it felt like we really had done it.

Best of Luck!

 

[dbs1228]

5.00 a point is really cheap and I do not see why you could not get at least 8.00 - 9.00 in a quick rental. I would at least contact David's rentals and Timeshare store rentals to see if they could get you at least 7.00 pp for a rental! Good luck and congrats