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Future Exit Strategy

dansimms

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Just wondering why those of us in the Destination Program couldn't get a reasonable return on selling a healthy portfolio of Marriott, whenever you decide enough is enough?
I am barely at the Chairman Level and would like to think that someone out there would be interested in saving tens of thousands of dollars in buying the whole thing from me, rather than from Marriott.......even if there were junk fees from Marriott. Someone looking to get Chairman Level would probably have to pay as much as $90,000 these days to match my benefits. So why couldn't an Owner successfully sell the 'owner bundle' for let's say $70,000 and recoup a lot of our original investment. Thoughts? I am hoping for decades of more enjoyment from my Marriotts, but I just throw it out there as an alternative to trying to sell if off piece-meal and get a lot less $ and have a lot more work to do.
 
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JIMinNC

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Just wondering why those of us in the Destination Program couldn't get a reasonable return on selling a healthy portfolio of Marriott, whenever you decide enough is enough?
I am barely at the Chairman Level and would like to think that someone out there would be interested in saving tens of thousands of dollars in buying the whole thing from me, rather than from Marriott.......even if there were junk fees from Marriott. Someone looking to get Chairman Level would probably have to pay as much as $90,000 these days to match my benefits. So why couldn't an Owner successfully sell the 'owner bundle' for let's say $70,000 and recoup a lot of our original investment. Thoughts? I am hoping for decades of more enjoyment from my Marriotts, but I just throw it out there as an alternative to trying to sell if off piece-meal and get a lot less $ and have a lot more work to do.

I am assuming that you are at Chairman level because you have enrolled your weeks. But if you sell those weeks, the new buyer will not be able to enroll the weeks they buy from you in the DC program. Those are forbidden from ever participating in the DC program. So the only thing you could sell that would help someone get to Chairman level would be any Trust points you own.
 

Saintsfanfl

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Whether you are selling weeks or points it still boils down to the same old resale issue. Why in the world would anyone pay $70K when they can get the same thing from other sellers for much less? Nobody is able to sell what they own for anywhere near your 78% of retail example. Heck you can pay less than 78% of retail buying directly from Marriott themselves! And those purchases come with MRP abilities.

As stated by JIMinNC, your Chairman Level is not going to transfer to a new owner, so they cannot pay for that benefit. Even points are not going to reach your 78%. Maybe 50% depending on the current ROFR threshholds. Those prices are likely to keep dropping as time goes on. The more points Marriott sells the less those points are worth on the resale market. Marriott keeps raising points prices and maintenance fees on aging properties. Something has to give.
 
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dansimms

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What if?

What if I added the Buyers name to my entire membership. leaving mine on it? I wonder how Marriott would thwart that?
 

taterhed

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:eek:Are you adopting me dad?

Ha Ha.

You can rent a lot of Marriotts for 70k my friend. Welcome to the real timeshare world....
 

tschwa2

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Problem is someone isn't going to pay $70,000 for something that legally belongs 50% to you. You still legally have an equal right to reservations and usage. On the other hand for $5000 or maybe $10,000 someone might take the risk. Problem with that one is you are still equally responsible legally for the mf's on the ownership.
 

taterhed

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So, just out of curiosity, how many MVC points (not converted weeks, but actual points) do you own?

This is not in reference to buying/selling your offer, this is in reference to determine the (possible) value of your idea.

IF this violates the moderator rules, sorry in advance.

I assume the weeks are as listed in the profile, so those are easy to approximate.
 

SueDonJ

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I don't understand how ANY ownerships that include direct purchases to the tune of $90K could ever be expected to return $70K on the resale market - that's just too high a return rate. Plus for that kind of money buyers may as well go through Resales Operations for the exact bundle package that fits their needs, giving them all of the benefits of direct purchases and none of the risks of external resales.

I would NEVER add someone's name to my account with the expectation that s/he'll assume all future risk (if it even can be done without processing new deeds?) As long as your name remains on it you're on the hook for it.
 

dansimms

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My thought process

Good points! Thanks It was just a hypothetical. I was figuring that a new Chairman needs 15000 points in some combination. So if they got half in Trust, that would cost $60,000 or more.....using a 'bundle' from Marriott for the other half would cost $25,000 or more. What ever the math worked out to, the seller could list it for $30,000 less with the idea of maximizing their sale. FYI, I only have 2500 Trust Points, bringing my total to 13,300. My actual exit plan is to leave it in a will and also provide the money to pay 3 years maintenance fee for a relative, but I guess it needs to come out of my name for the points raised above.
 

JIMinNC

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I only have 2500 Trust Points, bringing my total to 13,300.

So you could probably sell the 2500 Trust points for $5/point, or $12,500. Those would be the only points that would count toward the buyers' benefit level. Your other 10,800 points are from weeks that would transfer to the buyer without the ability to enroll for points. Not sure how much you could get for those weeks, but the buyer would only get the underlying deeded weeks usage rights, no DC points. So in the DC system, the new owner would just be at the lowest ownership level, plus be the owner of several deeded, unenrollable weeks.

This brings up an important point, that every time an enrolled week sells on the third party resale market, it is forever lost to the DC exchange system. As long as those losses are offset by new enrollments, the DC system stays whole. But if and when the attrition from the DC caused by enrolled weeks going to resale becomes greater than new enrollment of pre-2010 weeks, it would seem that DC availability at established resorts would start to drop. I wonder how Marriott would react to that, if it ever happens?
 

tschwa2

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Marriott is also offering buy backs, so right now they seem to be taking almost everything gold and above. For more than half of the resorts system wide the offers are at, above or close to market value. Their are some that have a much higher resale value and at that point they can decide if how bad they want it by exercising ROFR. Marriott can get back as many weeks as it wants using these methods. They won't have to let resale owners enroll.
 

SueDonJ

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... This brings up an important point, that every time an enrolled week sells on the third party resale market, it is forever lost to the DC exchange system. As long as those losses are offset by new enrollments, the DC system stays whole. But if and when the attrition from the DC caused by enrolled weeks going to resale becomes greater than new enrollment of pre-2010 weeks, it would seem that DC availability at established resorts would start to drop. I wonder how Marriott would react to that, if it ever happens?

Marriott can continue to ROFR/buyback whatever Weeks they need, whether it's to fuel the DC Trust for Points sales or to fuel Resales Operations for bundle package sales.

The reason they needed Weeks enrollment at the DC outset was to jumpstart the DC Exchange Company - that appears to be chugging along nicely and will continue to do so as long as II inventory can be mingled within.

Combine the two thoughts and I think ROFR/buybacks give them a better advantage than opening up new enrollment eligibility windows.
 

dansimms

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Rough guestimate

So, based on the above, plus 3 Platinum Weeks, perhaps the bundle, stripped of some of its benefits that I enjoy is probably, at most going to carry a resale value of about $25,000 to $30,000. But, once again, just a hypothetical. We love our ownership and use the heck out of it! Wouldn't it be a great incentive for Chairman level to be able to pass along ALL the benefits? It might be a way to get more to aspire to Chairman. Then my $30,000 estimate might be bolstered by another $10,000. The bundle at $40,000 would be something Marriott would have a tough time competing with and one reason why it will never happen.
 
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Saintsfanfl

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Marriott can continue to ROFR/buyback whatever Weeks they need, whether it's to fuel the DC Trust for Points sales or to fuel Resales Operations for bundle package sales.

Currently Marriott does not ROFR/buyback any weeks for the resale department. All resale department weeks that are used for bundles come from other owners that list their properties through Marriott as the broker. They only ROFR/buyback for the purpose of combining to the trust and selling the points.

This creates a loophole that can be taken advantage of (although a much lesser degree lately). Marriott may decline a certain week for ROFR but that price may still be much lower than the 60% proceeds of a brokered resale.

The profit on selling the resale weeks directly is not a high enough margin for Marriott to mess with, and it also detracts from the main purpose which is to sell points. In a nutshell why carry a buffer of weeks inventory for resales when owners wanting to sell are sitting by already paying the maintenance fees? It is profitable but nowhere near like selling the points from an ROFR/buyback.
 
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SunandFun83

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Good points! Thanks It was just a hypothetical. I was figuring that a new Chairman needs 15000 points in some combination. So if they got half in Trust, that would cost $60,000 or more.....using a 'bundle' from Marriott for the other half would cost $25,000 or more. What ever the math worked out to, the seller could list it for $30,000 less with the idea of maximizing their sale. FYI, I only have 2500 Trust Points, bringing my total to 13,300. My actual exit plan is to leave it in a will and also provide the money to pay 3 years maintenance fee for a relative, but I guess it needs to come out of my name for the points raised above.



I really could not tell if you were delusional or being sarcastic. Continuing posts it looks like you actually think that your Marriott portfolio can be sold for a great deal of money. I have purchased a dozen Marriott legacy weeks at the 25% of retail cost level(Dioxide data base) and I am able to find sellers of trust points at $4.70 or below (four so far) I have had an ad running for two weeks I want to sell. I am 30% below the Marriott resale and I had three contacts in a year.

$70,000 resale value? Questionable.
Your idea that an estate plan to give the timeshares to a relative must include 3 years of maintenance fees is a great idea. For an awful lot of people, those timeshares are an expense and they cannot figure out how to use them properly.

Better teach the new owner to plan 13 months ahead and get on the phone at 8:59:59 AM on inventory release date.


:cool:
 
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