ROFR for small amount of points

[Knaughty]

Does anyone know if ROFR would be an issue for a small amount of points such as 40-50 I currently own 160 at BLT and just want to add a few more possibly from resale. Would Disney really get involved in such a small purchase? If so what is a good starting bid for BLT I think I paid 105 several years ago direct from Disney

 

[wdrl]

Since May 2016, my data shows that Disney has exercised ROFR on four BLT deeds of 50 points or less.

It is my opinion that Disney is quite willing to ROFR small-point deeds if the reacquisition price is right. The last small-point BLT deed containing 50 points was reacquired on July 27, 2016, by Disney for $74 a point. That same day, Disney reacquired a 308-point BLT for about $116 a point and a 160-point deed for about $73 a point.

I suspect that if you intend to bid on a small point BLT deed, then you should expect to pay whatever the current threshold ROFR amount is for BLT. The fact that it is a small point deed is irrelevant.

 

[disneynutz]

Just sold small AKV and VWL contracts in one day and passed ROFR in a week.

Bill

 

[johnsgrl]

Does anyone know if ROFR would be an issue for a small amount of points such as 40-50 I currently own 160 at BLT and just want to add a few more possibly from resale. Would Disney really get involved in such a small purchase? If so what is a good starting bid for BLT I think I paid 105 several years ago direct from Disney

I can't tell you a good starting bit, but I can assure you they do exercise ROFR on small contracts , they just took a 50 pt BWV we had submitted yesterday. I didn't think the price was so out of line with what I have seen passing that they would take it. Though considering small point contracts seem to be going for a higher p.p amount maybe it was too low for them.

 

[disneynutz]

I can't tell you a good starting bit, but I can assure you they do exercise ROFR on small contracts , they just took a 50 pt BWV we had submitted yesterday. I didn't think the price was so out of line with what I have seen passing that they would take it. Though considering small point contracts seem to be going for a higher p.p amount maybe it was too low for them.

If you don't mind, what was the price, available points and terms?

Bill

 

[com_op_2000]

DVC/Disney has there own requirements for ROFR. Seems no one has been able to determine what those requirements are.
IMHO, DVC/Disney may also, be taking on contracts that have certain parts of the property that they already own, so that they can combine them to make a larger contact to full-fill a waiting list request. They will take on these contacts even if it presents a lower profit margin, to full-fill the request.

 

[Cyberc1978]

DVC/Disney has there own requirements for ROFR. Seems no one has been able to determine what those requirements are.
IMHO, DVC/Disney may also, be taking on contracts that have certain parts of the property that they already own, so that they can combine them to make a larger contact to full-fill a waiting list request. They will take on these contacts even if it presents a lower profit margin, to full-fill the request.

I don't understand the logic behind this. Say I would like to buy 500 points UY June at BLT directly. I then go on a waitlist for this. Why not just sell me whatever they can scoop up from the resale marked which to DVC has a reasonable selling price. Say there are 4 x 160 points contracts with a June UY at blt waiting for rofr. Why not just sell me 3 x160 and then the last 20 points as a fourth contract. DVC then has the left over points of 140 which they could split up as they see fit.

I know the closing cost is higher when buying more contracts but it seems buying directly from DVC have significantly lower closing costs compared to buying resale.

DVC would reach the goal in the same way as you suggested but only faster.

Regards

 

[disneynutz]

I don't understand the logic behind this. Say I would like to buy 500 points UY June at BLT directly. I then go on a waitlist for this. Why not just sell me whatever they can scoop up from the resale marked which to DVC has a reasonable selling price. Say there are 4 x 160 points contracts with a June UY at blt waiting for rofr. Why not just sell me 3 x160 and then the last 20 points as a fourth contract. DVC then has the left over points of 140 which they could split up as they see fit.

I know the closing cost is higher when buying more contracts but it seems buying directly from DVC have significantly lower closing costs compared to buying resale.

DVC would reach the goal in the same way as you suggested but only faster.

Regards

Good question, in Disney's world for some reason they do not want to sell older resorts. In addition, they don't want anyone to buy resale. Now if they sell out of Aulani and Poly, they will increase selling older resorts until the next new resort is approved for sale. Maybe the additional profit selling new is all they care about.

Bill

 

[com_op_2000]

I don't understand the logic behind this. Say I would like to buy 500 points UY June at BLT directly. I then go on a waitlist for this. Why not just sell me whatever they can scoop up from the resale marked which to DVC has a reasonable selling price. Say there are 4 x 160 points contracts with a June UY at blt waiting for rofr. Why not just sell me 3 x160 and then the last 20 points as a fourth contract. DVC then has the left over points of 140 which they could split up as they see fit.

I know the closing cost is higher when buying more contracts but it seems buying directly from DVC have significantly lower closing costs compared to buying resale.

DVC would reach the goal in the same way as you suggested but only faster.

Regards

In order for DVC to sell you those BLT contracts, they each must have the selling unit. Each contract represents a percentage of piece of property (Unit), to sell to you the BLT contract they must currently own enough points within the unit for each contract they sell. DVC might ROFR a contract that is higher cost and let a contract that would cost less pass, if the unit is needed to full-fill an outstanding request (in other words they know that they can turn around the contract faster than another that they might have to hold on too).

 

[KAT4DISNEY]

In order for DVC to sell you those BLT contracts, they each must have the selling unit. Each contract represents a percentage of piece of property (Unit), to sell to you the BLT contract they must currently own enough points within the unit for each contract they sell. DVC might ROFR a contract that is higher cost and let a contract that would cost less pass, if the unit is needed to full-fill an outstanding request (in other words they know that they can turn around the contract faster than another that they might have to hold on too).

Those who track sales state that Disney has sold from multiple units though to satisfy a point requirement.

 

[Cyberc1978]

In order for DVC to sell you those BLT contracts, they each must have the selling unit. Each contract represents a percentage of piece of property (Unit), to sell to you the BLT contract they must currently own enough points within the unit for each contract they sell. DVC might ROFR a contract that is higher cost and let a contract that would cost less pass, if the unit is needed to full-fill an outstanding request (in other words they know that they can turn around the contract faster than another that they might have to hold on too).

Sorry but that it is not entirely correct. If Dvc sold me 500 points split in 4 contracts then they don't need to own what you suggest. But you are correct if I need only 1 contract with 500 points, then they need to own from the same selling unit.

Regards

 

[johnsgrl]

If you don't mind, what was the price, available points and terms?

Bill

I don't mind at all, it was $92.00/pp, 0 available for 2016 and 50 coming in 2017. No MF till 2017 obviously and I was paying all closing costs.

 

[MouseOfCards]

Member JHank44 compiled a great list of all BLT contracts taken in ROFR this year (he posted it in the ROFR thread). Based on that list, it seems like DVC doesn't care about buying back small contracts (less than 100 points) unless the price is very low. Here's the ones taken this year:

5/9 30pts $67/pt
5/26 50pts $70/pt
7/27 50pts $74/pt
9/15 60pts $65/pt

 

[Dean]

DVD's main use of ROFR is to push buyers to retail. To that end, the main issue is specifically to keep buyers and brokers guessing so they can't pin down an exact formula and price. The spread required for them to make reasonable $$$ on ROFR points is pretty large. Then there's the issue of inventory. While I'm not sue DVD's numbers, historically timeshares are about 50% development costs with the rest being marketing and profit. Plus anything they sell that's not the new active resort is actually in competition. They judge success largely by selling the new resort. They really don't make much on ROFR points even when the spread is large.