ROFR metric / Ongoing ROFR Activity

[Bodie]

Thanks, Jeepie. Here's the answers 1) 2050 annual DC pts2) Sometimes 3) If I understand this question, based on the purchase price the point value is around $13.90 per 4) Maintenance Fee 2018 $1453.00 4) MR points (one time) 185,000; Plus Points (one time) 2000 5) Would put it on a Marriott Premiere for 18 payments after which I get another 2000 Plus Points (Interest 12.99) and then pay it off. A straight point purchase of 1500 (I actually only need 1350 but, MVC doesn't sell anything less than 1500 DC) would be $20,890 with no deeded week vs $23,300 with 2050 DC pts and a deeded week. And, as you pointed out, Presidential and Platinum. Would like to know what you think. Again, thank you, for your time.

 

[Fasttr]

Thanks, Jeepie. Here's the answers 1) 2050 annual DC pts2) Sometimes 3) If I understand this question, based on the purchase price the point value is around $13.90 per 4) Maintenance Fee 2018 $1453.00 4) MR points (one time) 185,000; Plus Points (one time) 2000 5) Would put it on a Marriott Premiere for 18 payments after which I get another 2000 Plus Points (Interest 12.99) and then pay it off. A straight point purchase of 1500 (I actually only need 1350 but, MVC doesn't sell anything less than 1500 DC) would be $20,890 with no deeded week vs $23,300 with 2050 DC pts and a deeded week. And, as you pointed out, Presidential and Platinum. Would like to know what you think. Again, thank you, for your time.

Some things to consider....
1. For some reason, when they set up the DC, the Caribbean resorts were not allocated very many points, and because of that, they are not very efficient points generators. The MF's on the pure trust points for 2018 is $0.553 a point. The MF per point on the proposed Aruba week is $0.709 ($1453 / 2050 points) which is not very good.

2. If you only purchased the 1500 pure Trust points that you need to reach Presidential status, your annual outlay (at 2018 MF's) would be $623.50 cheaper than owning the week. That amounts to a lot of saved money over time if you merely purchased just the 1500 Trust points that you need.

3. The rental rate for additional points is approx. $0.55 per point....so lets say the true "value" of the 2000 Plus Points they would give you to finance your purchase over 18 months is approx. $1,100. Now lets assume you put down 10% and finance the remaining 90% ($20,970) over that 18 months at 12.99% interest. The interest you would pay over that 18th months is around $2,222. The "value" trade off is just not there to finance it with MVC.

4. Your cost per point on the Aruba week is around $11.37 vs your cost per point on the pure Trust points at approx. $13.90 as quoted by you. That said, it would not take too many years paying the higher annual MF's on the Aruba week to make that cost per point savings on your initial Aruba week purchase no longer make sense.

Not trying to push you in any direction, but to me, I think there are better deals out there than purchasing this Aruba week if your primary reason is to get more DC points and to get to Presidential status. If only given these 2 options, I would just buy the 1500 Trust points and move on.

 

[Bodie]

Some things to consider....
1. For some reason, when they set up the DC, the Caribbean resorts were not allocated very many points, and because of that, they are not very efficient points generators. The MF's on the pure trust points for 2018 is $0.553 a point. The MF per point on the proposed Aruba week is $0.709 ($1453 / 2050 points) which is not very good.

2. If you only purchased the 1500 pure Trust points that you need to reach Presidential status, your annual outlay (at 2018 MF's) would be $623.50 cheaper than owning the week. That amounts to a lot of saved money over time if you merely purchased just the 1500 Trust points that you need.

3. The rental rate for additional points is approx. $0.55 per point....so lets say the true "value" of the 2000 Plus Points they would give you to finance your purchase over 18 months is approx. $1,100. Now lets assume you put down 10% and finance the remaining 90% ($20,970) over that 18 months at 12.99% interest. The interest you would pay over that 18th months is around $2,222. The "value" trade off is just not there to finance it with MVC.

4. Your cost per point on the Aruba week is around $11.37 vs your cost per point on the pure Trust points at approx. $13.90 as quoted by you. That said, it would not take too many years paying the higher annual MF's on the Aruba week to make that cost per point savings on your initial Aruba week purchase no longer make sense.

Not trying to push you in any direction, but to me, I think there are better deals out there than purchasing this Aruba week if your primary reason is to get more DC points and to get to Presidential status. If only given these 2 options, I would just buy the 1500 Trust points and move on.

 

[Bodie]

Wow. Thank you so much. I didn't even consider some of these things. This has been very helpful.

 

[gdstuart]

Just received notice that Marriott has declined ROFR on a 2 bedroom winter (Red Season) villa at Desert Springs II.
Sales price is $2,950 with closing costs of an additional $775. Total cost: $3,725. Guess we will be reactivating our old II account!

New to this, so pardon the newbie Q's...

Michael, is this week available to enroll in Dest Points? I infer that you bought the week and will be using it as a Weeks property, not Dest Points.

How does one tell if a given resale is eligible for Dest Points conversion?

 

[dioxide45]

New to this, so pardon the newbie Q's...

Michael, is this week available to enroll in Dest Points? I infer that you bought the week and will be using it as a Weeks property, not Dest Points.

How does one tell if a given resale is eligible for Dest Points conversion?

No resales weeks are eligible for Destinations Points enrollment unless purchase through Marriott resales as part of a hybrid package.

 

[gdstuart]

...
5. Can you put it on a credit card (preferably one I mentioned) and pay it off in full without incurring finance charges?

jeepie, we are being offered deal where they told us that if we kept the loan through to its end at 12.99% we would get a 2500-

No resales weeks are eligible for Destinations Points enrollment unless purchase through Marriott resales as part of a hybrid package.

Thanks, I had forgotten that detail. I did do a a conversion of a week at Monarch that we bought thru Marriott Resales in about 2008. What's the magic date for conversions? Sometime in 2010?

 

[dioxide45]

jeepie, we are being offered deal where they told us that if we kept the loan through to its end at 12.99% we would get a 2500-


Thanks, I had forgotten that detail. I did do a a conversion of a week at Monarch that we bought thru Marriott Resales in about 2008. What's the magic date for conversions? Sometime in 2010?

Weeks purchased on the external resale market after 6/20/2010.

 

[michael49]

--Michael, is this week available to enroll in Dest Points? I infer that you bought the week and will be using it as a Weeks property, not Dest Points.--
Dioxide is, of course, correct. The week is not eligible (at least at this point) to be enrolled. We will be resurrecting our non-corporate II account. We intend to use the DSII week roughly every other year; renting it out in the off years or letting our children use the week. It should also be a good trader in II.

 

[jeepie]

jeepie, we are being offered deal where they told us that if we kept the loan through to its end at 12.99% we would get a 2500-

I would add up the total interest and then determine the cost per point. My hunch is the plus points would cost way more than the value (I would value plus points at perhaps $.55 to $.60 per point, as that is the value of rented points, which are similar). Cheers.

 

[TXTortoise]

Week 7-8, 3BR on 3rd floor in MOC Lahaina Tower just sold on RedWeek. Weeks started at $75K and were at $68K when marked 'Sold'. Hoping buyer is on here and will post on ROFR.net.

This is only the 2nd sale I've seen of winter weeks since starting to track those weeks this time last year. Few new ads either.

Week 7, 3BR 11th Floor is still listed at $85K. ;-)

 

[GregT]

Week 7-8, 3BR on 3rd floor in MOC Lahaina Tower just sold on RedWeek. Weeks started at $75K and were at $68K when marked 'Sold'. Hoping buyer is on here and will post on ROFR.net.

This is only the 2nd sale I've seen of winter weeks since starting to track those weeks this time last year. Few new ads either.

Week 7, 3BR 11th Floor is still listed at $85K. ;-)

Wow -- did you have any contact with Seller or Broker? Would love to know what that cleared at. Thanks very much!

Best,

Greg

 

[TXTortoise]

Greg, they were listed by Brad Canton. I believe he's a broker, but can't find anything but a Brad Canton, Maui Landscaping, on Linked-In.

Looks like he still has Week 6 listed. https://www.redweek.com/posting/R733512

 

[gdstuart]

Week 7-8, 3BR on 3rd floor in MOC Lahaina Tower just sold on RedWeek. Weeks started at $75K and were at $68K when marked 'Sold'. Hoping buyer is on here and will post on ROFR.net.

This is only the 2nd sale I've seen of winter weeks since starting to track those weeks this time last year. Few new ads either.

Week 7, 3BR 11th Floor is still listed at $85K. ;-)

Somebody out there please tell me how anyone in their right mind would plunk down 68K, or 75K, or 85K for a week that I can buy on Marriott.com, Expedia, Orbitz, Hotels.com, etc. right now for about $3500 (just to stay for that one week, of course). You'd have to stay there every year for 19+ years to break even, and that assumes the MF is zero which of course it's not. I'm all for buying a resale week for $1 or even $1000, but I just do not understand the value proposition for spending upwards of 50K-85K on a timeshare week. And you can't even convert to DC points! What am I missing, other than "there's no accounting for taste"?

 

[JIMinNC]

Somebody out there please tell me how anyone in their right mind would plunk down 68K, or 75K, or 85K for a week that I can buy on Marriott.com, Expedia, Orbitz, Hotels.com, etc. right now for about $3500 (just to stay for that one week, of course). You'd have to stay there every year for 19+ years to break even, and that assumes the MF is zero which of course it's not. I'm all for buying a resale week for $1 or even $1000, but I just do not understand the value proposition for spending upwards of 50K-85K on a timeshare week. And you can't even convert to DC points! What am I missing, other than "there's no accounting for taste"?

I can’t address the wisdom of spending that much, but I can address that you will not find a MOC Lahaina/Napili Villas 3BR oceanfront for $3500/week on Marriott.com, Expedia, Orbitz, etc. The $500 prices in your PDF are for island or garden view studios in the original towers. A 3BR OF condo with full kitchen during prime time on Maui would probably be over double that, maybe triple. Also, the listed resale weeks are fixed weeks so you are guaranteed the same high demand week every year.

You won’t find MOC weeks for $1 anywhere.

 

[taterhed]

Somebody out there please tell me how anyone in their right mind would plunk down 68K, or 75K, or 85K for a week that I can buy on Marriott.com, Expedia, Orbitz, Hotels.com, etc. right now for about $3500 (just to stay for that one week, of course). You'd have to stay there every year for 19+ years to break even, and that assumes the MF is zero which of course it's not. I'm all for buying a resale week for $1 or even $1000, but I just do not understand the value proposition for spending upwards of 50K-85K on a timeshare week. And you can't even convert to DC points! What am I missing, other than "there's no accounting for taste"?

I strongly suggest you don't look at the Hyatt weeks next door....you'll lose your mind!

 

[csodjd]

Somebody out there please tell me how anyone in their right mind would plunk down 68K, or 75K, or 85K for a week that I can buy on Marriott.com, Expedia, Orbitz, Hotels.com, etc. right now for about $3500 (just to stay for that one week, of course). You'd have to stay there every year for 19+ years to break even, and that assumes the MF is zero which of course it's not. I'm all for buying a resale week for $1 or even $1000, but I just do not understand the value proposition for spending upwards of 50K-85K on a timeshare week. And you can't even convert to DC points! What am I missing, other than "there's no accounting for taste"?

It's kind of an applies and oranges comparison. And there is a certain inherent value, meaning your $75k cost (+/-) is not $75k lost. If, 10 years later, you can sell it for $65k, it cost you $10k, not $75k. And if 10 years later you can ell it for $85k, well...

 

[Nelsonian777]

I just want to piggyback on Steven Ting's information he posted last week. I too have had two DC point contracts for 1500 points fail ROFR last month, one at $2.88/pt and the other at $3.00/pt. I will try again this month at the $3.30/pt level and hope for an ROFR waiver this time.

 

[JIMinNC]

I just want to piggyback on Steven Ting's information he posted last week. I too have had two DC point contracts for 1500 points fail ROFR last month, one at $2.88/pt and the other at $3.00/pt. I will try again this month at the $3.30/pt level and hope for an ROFR waiver this time.

Just be sure you notice how Steven structured his transaction. The actual price that was submitted to Marriott was a purchase price of $6,800 for 1000 points ($6.80/per point), with the seller paying all closing costs and the $3000 Marriott transfer fee. See the discussion in posts #29 through #36 in this thread: https://tugbbs.com/forums/index.php...rchase-via-the-secondary-market.267570/page-2

So if you try your transaction again at $3.30/pp with you, the buyer, paying the other fees (as is customary), there may be a good chance that will fail just like your $2.88/pt and $3.00/pt offers.

 

[StevenTing]

Just an FYI that I structured the same transaction to Marriott at $3.00 per point, $6500 all in and Marriott did not waive. They exercised their right and took the contract at $6500.

 

[JIMinNC]

Just an FYI that I structured the same transaction to Marriott at $3.00 per point, $6500 all in and Marriott did not waive. They exercised their right and took the contract at $6500.

That’s surprising since it cost them $6.50/pt. Do you know for sure that the seller netted the full $6.50 from MVC?

ROFR seems so random. I like things to fall within a logical framework, but what passes and what fails seems to fit no real pattern.

 

[JIMinNC]

We just got the word this afternoon that we passed ROFR at $8,000 for an EOY-Odd 2BR Ocean View at Maui Ocean Club, original. It was incredibly hard to find EOY-Odd OV units available. Been working on making this happen since October.

This is our second ROFR pass in the last few weeks. We are also buying our first HGVC, a 2BR 7000 point annual at HGVC Sea World.

I have added both to the ROFR.net database.

 

[StevenTing]

That’s surprising since it cost them $6.50/pt. Do you know for sure that the seller netted the full $6.50 from MVC?

ROFR seems so random. I like things to fall within a logical framework, but what passes and what fails seems to fit no real pattern.

I just heard back from the broker. The seller did Net the full $6.50 less broker commissions. The seller was more than happy because they ended up getting about twice as much as they were originally expecting because of the way we wrote the contract.

 

[JIMinNC]

I just heard back from the broker. The seller did Net the full $6.50 less broker commissions. The seller was more than happy because they ended up getting about twice as much as they were originally expecting because of the way we wrote the contract.

That's really surprising they would pay $6.50/pt. That's over half of what they charge retail for points (assuming most point buys get a small discount off the $13+ price tag). I'm wondering if someone at MVC goofed, not really realizing how your contract was worded, and exercised before they realized the mistake. Then when your second one came through they didn't make the same mistake twice. That's the only reason I could think they would exercise at that price. Hard to figure out sometimes.

 

[VacationForever]

I just heard back from the broker. The seller did Net the full $6.50 less broker commissions. The seller was more than happy because they ended up getting about twice as much as they were originally expecting because of the way we wrote the contract.

Was this a different seller from your $6.80 one and presumably happened before you got yours to pass at $6.80? On a recent post in another thread, someone said they contacted Marriott about selling their contracts (deeded weeks and DC points) and the person received more for their DC points than what they paid. If so, Marriott may be offering to buy back at somewhere between $6.50 to $6.80. I suspect Marriott is doing buy back case by case. But still, it is good news for those who may want to turn in their DC points down the road when they no longer use them.