Why are brokers selling so many stripped contracts? Just saw BCV - 250 points coming on 2/1/23 and 2/1/24

[Theta]

So all the February 2021 and 2022 points are used? I thought there was a 50% borrowing rule of 2022 points. Is that no longer the case?

This is just one example, there seem to be so many stripped contracts. Any theories to what is happening to all those points?

 

[FSUSammy]

I didn't even put two and two together until I read this post but I saw the same thing over the weekend when we were looking. Now I'm wondering how that's possible because of the 50% rule too.

 

[hhisc16]

I didn't even put two and two together until I read this post but I saw the same thing over the weekend when we were looking. Now I'm wondering how that's possible because of the 50% rule too.

Could they have transferred them out somehow?

 

[davidl81]

The 50% rule should be in place, but I think something is broken with it. I booked a room a few months ago and one contract had all points available to borrow from, and my other one was already basically at 50%. But the dvc tool would give me an error if I tired to use the contract with full points, yet it let me book with the other contract. We stayed at AKV with no issues and the points came out of the contract they were not supported to.

That being said transfer makes more sense. IMO stripped contracts almost always sell at a premium relative to normal contracts or fully loaded banked contracts. The value of the missing points never seems to be accurately accounted for during resale. Most buyers are looking at total cost and $pp. If I sell any of my contacts I will fully strip them before I sell, the math just checks out that way.

 

[diskate10]

Not sure if it's the case here but I've also seen with some stripped contracts the sellers have a vacation in place and closing can't happen until after. So they could have used those 2022 points for a Feb 22 vacation and closing can't happen until after, but they want to sell their DVC now.

 

[LadybugsMum]

Are the points being used for DCL? I think you can go beyond the next year and borrow more points when booking cruises. But, I'm not completely sure about that.

 

[erionm]

Are the points being used for DCL? I think you can go beyond the next year and borrow more points when booking cruises. But, I'm not completely sure about that.

The 6/14/2022 DVC Charter of the Disney Wish is the only cruise where the limit on borrowing was waived.

 

[LadybugsMum]

The 6/14/2022 DVC Charter of the Disney Wish is the only cruise where the limit on borrowing was waived.

Ok, that must be what I was thinking of.

 

[Wendysofftoneverland]

I noticed a different BCV contract listed as no points available until 2023. Still seemed to be listed as sale pending quickly regardless.

 

[PirateBrigade]

Is this the timeshare equivalent of selling a house with a lease back? haha

I like looking at stripped contracts -- if you can discount the stripped points as a buyer, it works out, because some fully loaded points are just useless inside the 7 month window depending on what you're trying to do. But I agree with above, I feel that buyers aren't discounting, but I don't fully know if that's the case, either.

(side note to my first comment: my friend just sold her house, all contingencies waived, demanded a 90 day lease back for $1, and got cash offers above asking)

 

[Sandisw]

If they are stripped, it seems as though owners may have decided to get one last big trip in before selling.

For Feb 2022 points to be all used up and with no delayed closing, it seems to indicate they did some level of transfer of those points. The restriction is only for borrowing. But one can still transfer all which is how some owners have gotten more points for their own trips.

 

[Theta]

If they are stripped, it seems as though owners may have decided to get one last big trip in before selling.

For Feb 2022 points to be all used up and with no delayed closing, it seems to indicate they did some level of transfer of those points. The restriction is only for borrowing. But one can still transfer all which is how some owners have gotten more points for their own trips.

Oh, I didn't know one could transfer future year's points.

So what are the rules for the person receiving the points? When could they start using those points? February 2022 or August 2022?

 

[dvc lover 1970]

Points were probably transferred out to someone else

 

[sethschroeder]

Before I sold last year I transferred all my points to my other membership. If I were to sell again I would sell my points as a transfer to someone else as I now only have 1 membership so can't transfer to myself.

 

[Sandisw]

Oh, I didn't know one could transfer future year's points.

So what are the rules for the person receiving the points? When could they start using those points? February 2022 or August 2022?

Points transferred retain their own use and UY so any 2022 points would be valid for the dates of a Feb 2022 UY.. The owner who gets the points could also bank them into the Feb 2023 UY.

 

[sssteele]

I noticed a different BCV contract listed as no points available until 2023. Still seemed to be listed as sale pending quickly regardless.

BCV is and has been the hottest DVC resale property. We bought in 2002, and could sell now for over twice what we paid. Only 21 years left on the contracts. Love that BCV purchase 300 points) more all the time.

 

[DougEMG]

It is usually more profitable to strip a contract of points, rent out those points and then sell the contract rather than just selling the contract with the original points. Easiest way to do this is transfer the points out to another contract. Lots of flippers do this.

 

[BillPA]

Didn't they announce a special Adventure By Disney deal? Or could you send those points to RCI?

 

[davidl81]

Before I sold last year I transferred all my points to my other membership. If I were to sell again I would sell my points as a transfer to someone else as I now only have 1 membership so can't transfer to myself.

That’s the smart play. I’d guess you end up netting $7-$10 more per point in the end assuming you were to monetize those transferred points somehow

 

[MomOTwins]

The 6/14/2022 DVC Charter of the Disney Wish is the only cruise where the limit on borrowing was waived.

They could have done that. Then the points would be converted to reservation points and they could sell the contract.