ROFR - Who is that behind the curtain?

[hayesdvc]

Who/Where/What group from Disney actually makes the ROFR decisions? Can real estate companies contact them for an update on a particular contract ? I assume direct contact with the common man is not possible.

 

[supersnoop]

Any direct contact would be pointless, even with a broker. "We haven't decided yet." What more do you expect them to say?

 

[disneynutz]

My guess is that ROFR is reviewed and decided within a couple of days. Disney knows the numbers that they are looking for and IMO they will exercise the ROFR purchase as soon as they can. The sooner they close on the contract, the sooner that they can sell at a profit.

Bill

 

[DenLo]

My guess is that ROFR is reviewed and decided within a couple of days. Disney knows the numbers that they are looking for and IMO they will exercise the ROFR purchase as soon as they can. The sooner they close on the contract, the sooner that they can sell at a profit.

Bill

Wait, haven't you said in the past Bill, that the committee only meets once a month and the decision is made at that time?

 

[disneynutz]

Wait, haven't you said in the past Bill, that the committee only meets once a month and the decision is made at that time?

Not that I'm aware of, IMO there isn't a committee just a CM that follows a spread sheet of instructions.

Bill

 

[Dean]

Who/Where/What group from Disney actually makes the ROFR decisions? Can real estate companies contact them for an update on a particular contract ? I assume direct contact with the common man is not possible.

I agree, there's no point. Are you trying to fine out about a given contract in ROFR or trying to ascertain the parameters they use. For the former, once the committee signs off on it, the owner and possibly the broker will be notified with no advance information. For the later, the main purpose of ROFR IS to keep you guessing.

I seem to recall a post within the last year or so that the committee is meeting more often. I suspect once a month is pushing it to meet their legal obligations in this matter. The normal functioning would be that one or more CM come in with a file for each and a score sheet taking into account the dollars involved (price, points availability, closing costs, etc) and likely the inventory (chance of turning a quick profit. I also suspect they have limits on $$$ they can spend. Then they sign off on the recommendations either one at a time or as a group. The normal functioning would be that either the chair of the committee signs off on the obvious ones ahead of time and the committee rubber stamps the decision then they discuss the questionable ones and make those decisions individually. Or the easy ones get presented as a list at the meeting and they discuss the more difficult ones individually. Disney doesn't want to give any one individual total unsupervised control because that type of system opens itself up to abuse.

 

[hayesdvc]

I agree, there's no point. Are you trying to fine out about a given contract in ROFR or trying to ascertain the parameters they use. For the former, once the committee signs off on it, the owner and possibly the broker will be notified with no advance information. For the later, the main purpose of ROFR IS to keep you guessing.

I seem to recall a post within the last year or so that the committee is meeting more often. I suspect once a month is pushing it to meet their legal obligations in this matter. The normal functioning would be that one or more CM come in with a file for each and a score sheet taking into account the dollars involved (price, points availability, closing costs, etc) and likely the inventory (chance of turning a quick profit. I also suspect they have limits on $$$ they can spend. Then they sign off on the recommendations either one at a time or as a group. The normal functioning would be that either the chair of the committee signs off on the obvious ones ahead of time and the committee rubber stamps the decision then they discuss the questionable ones and make those decisions individually. Or the easy ones get presented as a list at the meeting and they discuss the more difficult ones individually. Disney doesn't want to give any one individual total unsupervised control because that type of system opens itself up to abuse.

Do you really think a committee could meet once a month and review all the pending contracts one at a time ? That seems to me that would be an overwhelming project.
From time to time, you will see posts from former cast members regarding various subject matter. I am surprised there is nothing out there on what actually happens in the ROFR process from former employees with first hand knowledge.

 

[disneynutz]

Despite what we may have been told, I don't see Disney wasting their time with a committee. IMO a bean counter decides what meets their business needs and some lower paid CM reviews the contracts looking for a match. ROFR doesn't seem that important to them to tie several people up going through contracts.

Bill

 

[supersnoop]

Despite what we may have been told, I don't see Disney wasting their time with a committee. IMO a bean counter decides what meets their business needs and some lower paid CM reviews the contracts looking for a match. ROFR doesn't seem that important to them to tie several people up going through contracts.

Bill

I always figured they send an email out to the "guides" and have them check against their clients and the waitlist. If they can sell something, they buy it. If not, they wait until the time runs out.

 

[Dean]

Do you really think a committee could meet once a month and review all the pending contracts one at a time ? That seems to me that would be an overwhelming project.
From time to time, you will see posts from former cast members regarding various subject matter. I am surprised there is nothing out there on what actually happens in the ROFR process from former employees with first hand knowledge.

Sure if it's done as I described. You have mid levels organizing them and they only have to sign off on most and discuss the borderline ones or weird situations. I suspect they have a spreadsheet already that arrives at a value for each based on points availability, UY, home resort and closing costs. There is no way they'll have individuals doing this without supervision/controls but they have to have individuals gathering and organizing the information.

 

[wdrl]

I suspect DVD has an algorithm in place to scan pending resale transactions and flag those that may be worth looking at in more detail. I also suspect that the algorithm might be automated or computerized to a degree, such as flagging (or kicking out) transactions by price and resort, but that human intervention is required to look at all the variables that could come into play when DVD decides to reacquire a deed. Hence, I think there is a "committee" or, better yet, a "work group" that screens all the pending transactions and prepares a list of possible reacquisitions.

Now, it might be that the "work group" has only one member, or several members, but that really doesn't matter. Its job is just to compile a list of transactions with all the specifics of each deed, such as resort, number of points, Use Year, price per point, and closing costs and/or annual dues that would be payable by DVD if it takes over the transaction. There may be other variables that are considered, such as whether its a Vero Beach or Aulani deed with subsidized dues, or an Old Key West deed that was not extended.

The work group doesn't have to have a high pay grade to do its job. Its basically performing a clerical function using the criteria set by someone higher up in the organization.

The actual selection of which deeds to reacquire involves authorizing the spending of money, and for this reason I think there are higher level CMs involved in the process. So far in December, just for the WDW resorts and Vero Beach, DVD has spent over $1.1 million in buying back deeds, and that is just the price per point it paid according to OCC and Indian River. It doesn't include what DVD had to pay in closing costs or in annual dues. Even for a multi billion dollar corporation like TWDC, a million dollars is not something you trust to a single individual; there has to be some oversight and accountability.

Personally, I don't think that DVD pays that much attention to wait lists when it decides whether to buy back a deed. It might have customers wanting OKW points for any UY other than February, but if it can buy 600 OKW points with a February UY for $50 a point (which it did earlier this month), it will take them back and skip over the other OKW deeds that are higher priced. Basically, I think DVD knows that if it owns the points it will eventually sell them.

I also believe that DVD's ROFR process is somehow influenced by DVD's foreclosure process. Foreclosures are a source of additional inventory, but there are reacquisition costs associated with those foreclosures. DVD doesn't have an unlimited budget, and higher rates of foreclosures might affect how much money it can use on ROFR transactions.

 

[hayesdvc]

I suspect DVD has an algorithm in place to scan pending resale transactions and flag those that may be worth looking at in more detail. I also suspect that the algorithm might be automated or computerized to a degree, such as flagging (or kicking out) transactions by price and resort, but that human intervention is required to look at all the variables that could come into play when DVD decides to reacquire a deed. Hence, I think there is a "committee" or, better yet, a "work group" that screens all the pending transactions and prepares a list of possible reacquisitions.

Now, it might be that the "work group" has only one member, or several members, but that really doesn't matter. Its job is just to compile a list of transactions with all the specifics of each deed, such as resort, number of points, Use Year, price per point, and closing costs and/or annual dues that would be payable by DVD if it takes over the transaction. There may be other variables that are considered, such as whether its a Vero Beach or Aulani deed with subsidized dues, or an Old Key West deed that was not extended.

The work group doesn't have to have a high pay grade to do its job. Its basically performing a clerical function using the criteria set by someone higher up in the organization.

The actual selection of which deeds to reacquire involves authorizing the spending of money, and for this reason I think there are higher level CMs involved in the process. So far in December, just for the WDW resorts and Vero Beach, DVD has spent over $1.1 million in buying back deeds, and that is just the price per point it paid according to OCC and Indian River. It doesn't include what DVD had to pay in closing costs or in annual dues. Even for a multi billion dollar corporation like TWDC, a million dollars is not something you trust to a single individual; there has to be some oversight and accountability.

Personally, I don't think that DVD pays that much attention to wait lists when it decides whether to buy back a deed. It might have customers wanting OKW points for any UY other than February, but if it can buy 600 OKW points with a February UY for $50 a point (which it did earlier this month), it will take them back and skip over the other OKW deeds that are higher priced. Basically, I think DVD knows that if it owns the points it will eventually sell them.

I also believe that DVD's ROFR process is somehow influenced by DVD's foreclosure process. Foreclosures are a source of additional inventory, but there are re-acquisition costs associated with those foreclosures. DVD doesn't have an unlimited budget, and higher rates of foreclosures might affect how much money it can use on ROFR transactions.

Thanks for your comments ! I have also tried the foreclosure route. I never could compete with DVD. Quick story. Using the web site for OCC, etc, there were some SSR's forecloses I wanted to bid (as the market is in the $80's per point, I was going to bid no more than $$50-$60?!?!?!). Those that are not familiar with the process, you have to determine the points by looking at the original deed and tie the numbers together with the foreclosure. Well ....................... after getting out bid and out bid on other lots, I got down tho the lot I really wanted. I bid and bid and the price kept going up with the proxy bid until I bid up to $10,000. The bid then moved to something like $10,098.12. I knew if I bid $10,100 the prize was mine. As I was waiting for the answer of ROFR on my resale contract (which Disney did buy), I decided to watch the clock of the auction run out without bidding again. I was sick until ......................... I re-looked at the deed associated with the foreclosure lot. I had transposed a contract number as it related to the foreclosure listing and instead of a SSR 200 point contract, it was SSR but ONLY 60 points. I almost became physically ill knowing what just about happened. If I had bid that extra $100, I would have paid over $168 per point for SSR, however, our friends at DVD "paid" that amount. With all these variables, I am out of the foreclosure business.

 

[hayesdvc]

Does anyone know if historically, will Disney make any ROFR decisions between now and the first of the year ?