It’s ROFR Tuesday! 1.51/fail

[TXTortoise]

Seeing quit a few Hawaii weeks offered by brokers clearly below ROFR, so everyone is doing this with their eyes open. Just wish MVC wasn't getting deeded weeks.

 

[Red elephant]

Seeing quit a few Hawaii weeks offered by brokers clearly below ROFR, so everyone is doing this with their eyes open. Just wish MVC wasn't getting deeded weeks.

Rinse recycle and repeat.

 

[daviator]

If you have a deeded week that you want to get rid of, could you use the ROFR process to get Marriott to buy it back and at least save yourself the $400 deedback fee? Like submit a purchase contract at a low price (under the ROFR threshold) with "buyer pays all closing costs" and submit it? If they declined to step in, then the buyer could walk away and not consummate the deal if they didn't want to. This only works at properties that MVC actually wants to buy back, of course, and maybe that isn't all properties. But someone might be able to get rid of their week and actually get a (little) bit of money for it, as opposed to paying MVC for a deedback.

 

[TXTortoise]

yup, that's what this is all about, just need a buyer willing to try their luck for the hassle factor

 

[RookWDW]

Where do you see Hawaii weeks before ROFR?

 

[WahooWah]

If you have a deeded week that you want to get rid of, could you use the ROFR process to get Marriott to buy it back and at least save yourself the $400 deedback fee? Like submit a purchase contract at a low price (under the ROFR threshold) with "buyer pays all closing costs" and submit it? If they declined to step in, then the buyer could walk away and not consummate the deal if they didn't want to. This only works at properties that MVC actually wants to buy back, of course, and maybe that isn't all properties. But someone might be able to get rid of their week and actually get a (little) bit of money for it, as opposed to paying MVC for a deedback.

Technically speaking, if a buyer engages in such a transaction with no intention of actually making the purchase, it is fraud.

 

[equitax]

Technically speaking, if a buyer engages in such a transaction with no intention of actually making the purchase, it is fraud.

This is true and there are stipulations that may vary here as far as developper goes - this is certainly turie for an unfulfilled sale of trust points to a party other than the developper.

Depending on jurisdiction however the purchaser might not be doing anything wrong- Florida for example has its 10 day rescind that applies regardless if buying from developer or from a third party - whether direct or through a broker.

If ROFR was waived whilst purchaser could still legally rescind it would be hard to prove that buyer never intended to close - mandatory recision / cool down period exist exactly for that purpose. Now if the same buyer rescinded regularly that might be a different story.

 

[equitax]

 

[equitax]

View attachment 125991

Well they flinched before I did. “Effective per point cost” before rofr fee documentation and 750/bi fee will be just under 3$/point. Incidentally they exercised on other contracts at 2.75 2.99 and 3.15

 

[CPNY]

Technically speaking, if a buyer engages in such a transaction with no intention of actually making the purchase, it is fraud.

prove it lol.

 

[jen.in.hi]

Well they flinched before I did. “Effective per point cost” before rofr fee documentation and 750/bi fee will be just under 3$/point. Incidentally they exercised on other contracts at 2.75 2.99 and 3.15

In this type of situation with Marriott what would the total all in cost be for 1k points for example?

What does “bi” mean? I’m still learning.

 

[equitax]

Bi beneficial interest that’s the 3$ per point

As for on 1000 points probs have less negotiating power with parties involved but safe to say that I think you can get it at effectively 3$ point before transfer fee and rofr and closing. if papered correctly. I have an agent I can refer you too. Shes awesome

 

[craigd]

Well they flinched before I did. “Effective per point cost” before rofr fee documentation and 750/bi fee will be just under 3$/point. Incidentally they exercised on other contracts at 2.75 2.99 and 3.15

Outstanding.

 

[craigd]

Bi beneficial interest that’s the 3$ per point

As for on 1000 points probs have less negotiating power with parties involved but safe to say that I think you can get it at effectively 3$ point before transfer fee and rofr and closing. if papered correctly. I have an agent I can refer you too. Shes awesome

You are a hero.

 

[WorldT]

Bi beneficial interest that’s the 3$ per point

As for on 1000 points probs have less negotiating power with parties involved but safe to say that I think you can get it at effectively 3$ point before transfer fee and rofr and closing. if papered correctly. I have an agent I can refer you too. Shes awesome

Maybe @jen.in.hi will pick up the mantle. There are a couple of sub $1/point purchase price on the TUG marketplace.

 

[Retired2025 aka AlmostRetired]

I understand that sellers are being helped out of what must be a desperate situation. What gets lost in all this is the likelihood that the owners were lied to and misled by MVW to be put in this position. When you add the number of people who have more points than they could ever use or can't really use the points t because of inventory challenge., the dissatisfaction with the points program is growing. It is a shame that Marriott wins even if a buyer gets the points for free, but even for free, Inventory is and will be an issue for many in the foreseeable future.

I am a little sensitive to this right now because I met a person I rented points from to book a unit for me who bought in 2025 and up until using his bonus points for me, had 5000 bonus points expiring in March 2027, 2500 points expiring in March 2027 and 2500 points from 2026 that he can't use because his wife is due in a few months and he can't find a week to use where he wants to go for 2500 points. He is 54, has two older kids nearing college age, a soon to be newborn from a second marriage and a loan on 2500 points.

There was a discussion earlier in the thread about the limitations on renting points. In my opinion there are none since one rents points for specific reasons. You rent what you need, so banking is not an issue. You can rent them 18 months in advance so plenty of time for using, The only limitation I can think of is accumulating enough points to take an overvalued cruise or tour. On the plus side the cost of a point is often below MF and there seems to be an unlimited supply. The only caveat is you must have a plan. know what you are doing and be at least select to book 13 months out.

 

[equitax]

Maybe @jen.in.hi will pick up the mantle. There are a couple of sub $1/point purchase price on the TUG marketplace.

If you have a look at Rofr database the penny give away will never pass rofr. I’ve been buyer on piles of contracts that Marriott exercised in in the last months. If you are actually willing to buy points, you should notbheaitatae in making offers that Marriott will exercise on and at least you will help someone else out.

 

[TXTortoise]

Where do you see Hawaii weeks before ROFR?

Mostly Redweek listings by brokers. 'below ROFR'

 

[WahooWah]

Well they flinched before I did. “Effective per point cost” before rofr fee documentation and 750/bi fee will be just under 3$/point. Incidentally they exercised on other contracts at 2.75 2.99 and 3.15

Please clarify. Did you just have three contracts bought back by Marriott at $2.75, $2.99 and $3.15/pt on 6/1? and did you also received a waiver on a purchase for $6.00/pt on 6/1?

 

[WahooWah]

In this type of situation with Marriott what would the total all in cost be for 1k points for example?

What does “bi” mean? I’m still learning.

The total all in costs for someone purchasing 1,000 MVC Trust points (ABOUND) would be roughly $3/pt for the purchase plus $750/BI ($3/pt, one "BI" or beneficial interest is 250 points) in transfer/training costs paid to Marriott plus whatever closing costs (escrow and title fees, $300 education fee to Marriott assuiming a non-owner) of approx. $1,000. So all in cost would be approx. $7,000.

Maybe better understood by listing it one by one:
$3/pt purchase price to Seller (assuming that is the price at which Marriott waives ROFR) = $3,000
4 BIs (250 pts each) at $750/BI to Marriott for transfer and training fees = $3,000
Escrow, title, recording fees and taxes, title insurance premium = approx. $700
Education fee (assuming new owner) to Marriott = $300

 

[WorldT]

If you have a look at Rofr database the penny give away will never pass rofr. I’ve been buyer on piles of contracts that Marriott exercised in in the last months. If you are actually willing to buy points, you should notbheaitatae in making offers that Marriott will exercise on and at least you will help someone else out.

With MVC, never say never. Of course, it is unlikely to pass. However, the owners will be relieved of their current responsibilities. They are willing to part with the units at those numbers. I would help them move it along.