ROFR Thread Oct to Dec 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Sandisw]

Reality has not set in yet for sellers that a recession is coming in 2023. DVD seems to have though by not ROFR contracts since they don't want to get stuck having to pay maintenance fees for units they cannot sell or might not even be able to rent out. Prices have been dropping but they have more to go before they hit bottom. I myself will be looking to add later in 2023 if the prices drop low enough.

DVD doesn’t pay operating expenses on points they own in exchange for the guarantee to cover shortfalls if the the actual expenses end up being more than what was projected.

But, I think the contracts passing support that ROFR caused prices to drop since buyers get more aggressive with asking and sellers are willing to take less.

Look at how SSR has dropped since ROFR has essentially dropped. It’s going to be tough for me to avoid a RIV resale if prices drop closer to the $100 to $110/pt mark!

 

[hglenn]

It’s going to be tough for me to avoid a RIV resale if prices drop closer to the $100 to $110/pt mark!

Sandi I feel like you may take up residency at the Riviera if prices drop low enough!

 

[Sandisw]

Sandi I feel like you may take up residency at the Riviera if prices drop low enough!

A girl can dream!

 

[tom1944]

DVD doesn’t pay operating expenses on points they own in exchange for the guarantee to cover shortfalls if the the actual expenses end up being more than what was projected.

But, I think the contracts passing support that ROFR caused prices to drop since buyers get more aggressive with asking and sellers are willing to take less.

Look at how SSR has dropped since ROFR has essentially dropped. It’s going to be tough for me to avoid a RIV resale if prices drop closer to the $100 to $110/pt mark!

How often has there been a shortfall in the actual expenses?

 

[Sandisw]

How often has there been a shortfall in the actual expenses?

No one knows because DVD doesn’t publish that information. But my assumption is it must be a pretty good deal for them as they guarantee it every year. They don’t have to do that.

When there is a surplus in what we pay, it is rolled into capital reserve. The exception was 2020 when they were closed, They actually gave owners back the credit.

 

[Bearval]

DVD doesn’t pay operating expenses on points they own in exchange for the guarantee to cover shortfalls if the the actual expenses end up being more than what was projected.

But, I think the contracts passing support that ROFR caused prices to drop since buyers get more aggressive with asking and sellers are willing to take less.

Look at how SSR has dropped since ROFR has essentially dropped. It’s going to be tough for me to avoid a RIV resale if prices drop closer to the $100 to $110/pt mark!

I never suspected that they wouldn't have to pay MF's. So that means they do not have to contribute any funds for long term renovations ( new roofs, HVAC etc.) on points they own? They just pass that cost on to owners?

 

[Sandisw]

I never suspected that they wouldn't have to pay MF's. So that means they do not have to contribute any funds for long term renovations ( new roofs, HVAC etc.) on points they own? They just pass that cost on to owners?

It is the operating expenses. Here is the language from the annual dues budget From VGF.

 

[tom1944]

It is the operating expenses. Here is the language from the annual dues budget From VGF.

View attachment 726969

Do owners get to vote on the fee or Disney calculates it and sets it without input?

 

[Sandisw]

Do owners get to vote on the fee or Disney calculates it and sets it without input?

DVCMC creates the annual dues budget and jt is approved at the condo meeting. We, as owners, have hired them to do that on our behalf,

So, no, owners have no voting rights or input in these matters. Pretty much our only recourse would be to vote out DVMC as the management company and that is pretty near impossible the way things are set up.

Now, as owners, we do have the right to see the detailed budgets by making an appointment with DVCMC to see them in Orlando.

 

[eMoneyBug]

Look at how SSR has dropped since ROFR has essentially dropped. It’s going to be tough for me to avoid a RIV resale if prices drop closer to the $100 to $110/pt mark!

...I'm a total low ball shopper, since there are not too many RIV contracts out there and having made a handful of offers, MANY ignored me or told me to buzz off but 1 did say Yes! You should go for it and offer your hundo, you never know.

 

[Cfabar1]

The problem RIV has right now is many people financed and will not want to be underwater. 150 minimum points at $207 or so a point is a HUGE cost, at least for me…

 

[HIRyeDVC]

The problem RIV has right now is many people financed and will not want to be underwater. 150 minimum points at $207 or so a point is a HUGE cost, at least for me…

little money is better than no money?

 

[disneyspinedoc]

Mrsp---$135-$22475-160-BLT-Feb-0/21, 0/22, 160/23, 160/24- sent 11/11

Mrsp---$135-$22475-160-BLT-Feb-0/21, 0/22, 160/23, 160/24- sent 11/11

Passed !

wow amazing! Congrats!!

 

[pianomanzano]

little money is better than no money?

Except they won’t be getting any money. If someone financed 150 points a year and a half ago their balance would be around 22k. If they sold their points at 120/pt they’d have to bring 6-7k out of their own pocket at closing. If they financed to begin with, I doubt they have that much cash sitting around to close.

 

[HIRyeDVC]

Except they won’t be getting any money. If someone financed 150 points a year and a half ago their balance would be around 22k. If they sold their points at 120/pt they’d have to bring 6-7k out of their own pocket at closing. If they financed to begin with, I doubt they have that much cash sitting around to close.

My view on that is, if someone financed to buy a contract, it was never their contract. Monera or some bank owned it. Not trying to be insensitive. It is what it is.

 

[Sandisw]

The problem RIV has right now is many people financed and will not want to be underwater. 150 minimum points at $207 or so a point is a HUGE cost, at least for me…

Many sellers who bought in the first few years most likely did not pay much more than $165ish given initial price and incentives.

We bought in October 2019 and paid $162 for 175 points.. which did include a $1k CM discount..but that wasn’t even the first set of incentives which were better.

So, while people would be selling for less than they probably paid if they had to sell, it’s not as bad as one might think for those early buyers.

 

[Nursemanit]

My view on that is, if someone financed to buy a contract, it was never their contract. Monera or some bank owned it. Not trying to be insensitive. It is what it is.

So it's not your home or your car?

 

[HIRyeDVC]

So it's not your home or your car?

Nope. I get to live in the house and drive the car as long as I make payments every month. The banks own those assets until I finish paying it off. I don’t think that’s a secret.

 

[Nursemanit]

Nope. I get to live in the house and drive the car as long as I make payments every month. The banks own those assets until I finish paying it off. I don’t think that’s a secret.

Oh so your bank pays for the roof if it leaks?

 

[Cfabar1]

The fact is people may feel that they don’t want to pay $5k when they can just pay $1500 in maintenance dues each year. Personally financing a DVC contract is not the right decision for me. I’d maybe consider 6 months to 2 years at absolute most, but don’t imagine doing it. I’d rather buy smaller contracts or not buy at all, but to each their own.