ROFR metric / Ongoing ROFR Activity

[jeepie]

your misunderstanding you having enrolled weeks you can trade into trust points and mvc buying back international properties (as they have done with domestic us deeded weeks) to sell as vacation club beneficial interests to new vcp purchasers.

Not sure I’m understanding here. Also, I believe enrolled weeks allow one to “elect” points, which are technically not “trust” points (although practically speaking, they are virtually identical when using them). Cheers.

 

[bazzap]

Not sure I’m understanding here. Also, I believe enrolled weeks allow one to “elect” points, which are technically not “trust” points (although practically speaking, they are virtually identical when using them). Cheers.

Correct.

 

[ArubaOwnsRoytman]

Not sure I’m understanding here. Also, I believe enrolled weeks allow one to “elect” points, which are technically not “trust” points (although practically speaking, they are virtually identical when using them). Cheers.

I think to avoid confusion you may want to not think of this from a "my" personal usage standpoint. Try to think of it from the standpoint of a potential buyer of an RTU international week and that potential buyer asking themselves why MVC doesn't exercise ROFR on RTU properties much. That should maybe help you understand what the original post was about.

 

[ArubaOwnsRoytman]

Or they can't sell Aruba as DC Trust Points. I think this may be why we see Aruba at a lower ROFR threshold.

This is the right idea here.

 

[MOXJO7282]

I have a nice MOW OF platinum in ROFR at $10k. Has an awesome 2019 week attached. I'm skeptical it will pass and was tempted to pay more to try to make it pass but decided to try it at $10k.

 

[GregT]

I have a nice MOW OF platinum in ROFR at $10k. Has an awesome 2019 week attached. I'm skeptical it will pass and was tempted to pay more to try to make it pass but decided to try it at $10k.

Good luck and let us know how it goes!!!!

Best,

Greg

 

[MOXJO7282]

Amazingly we heard back in less than a week and IT PASSED!!. Very surprised and super pleased because as mentioned it comes with a July 14th 2019 usage week that adds to the value.

 

[TXTortoise]

On a roll...and a good datapoint as there's not much on ROFR.net for 2018.

 

[mjm1]

Amazingly we heard back in less than a week and IT PASSED!!. Very surprised and super pleased because as mentioned it comes with a July 14th 2019 usage week that adds to the value.

Congratulations! Great deal especially with the July 2019 week you get. Enjoy.

Best regards.

Mike

 

[LUVourMarriotts]

Amazingly we heard back in less than a week and IT PASSED!!. Very surprised and super pleased because as mentioned it comes with a July 14th 2019 usage week that adds to the value.

Congratulations! This makes me a little annoyed because I was told $11K was the lowest that Platinum OS had been passing, so I went a bit over that. Oh well, its only money.

 

[dansimms]

What is the going rate for ROFR for Asia Pacific Points. They carry an approximately lower maintenance fee to the tune of 30% less. I assume they can only be used in certain MVCI locations. I hear they are normally sold for about 30% more than DPs.

 

[DEScottzz]

ROFR failed on 1500 trust points at $3.15 = $4725. That particular batch of points was of interest to me because the first use year was 2020, and I don't really need the 2019 points.

Back to the drawing boards.

(Added to ROFR.NET)

 

[JIMinNC]

ROFR failed on 1500 trust points at $3.15 = $4725. That particular batch of points was of interest to me because the first use year was 2020, and I don't really need the 2019 points.

Back to the drawing boards.

(Added to ROFR.NET)

In your deal that failed, which party - buyer or seller - was responsible for closing costs and the $3/point activation fee?

 

[DEScottzz]

In your deal that failed, which party - buyer or seller - was responsible for closing costs and the $3/point activation fee?

The buyer was responsible.

I'm curious whether there's a way to structure an offer that makes it a bit less attractive to Marriott.

 

[TravelTime]

The buyer was responsible.

I'm curious whether there's a way to structure an offer that makes it a bit less attractive to Marriott.

Some people have bundled the price per point, the junk fees and closing costs all together so if Marriott exercises, it would be more expensive to Marriott. It does not always work but worth a try.

 

[JIMinNC]

The buyer was responsible.

I'm curious whether there's a way to structure an offer that makes it a bit less attractive to Marriott.

Yes, as TravelTime noted, some have reported success with an approach with very specific language in the contract and the contract is structured where the agreed-upon price is high enough to cover not only the purchase price the seller is looking for, but also the closing costs and the $3/point activation fee to Marriott. The Seller then agrees to pay all of those fees, but since the price is high enough to cover it, they are still whole and the way the wording is set up makes it less attractive to Marriott to exercise. Some have reported getting past ROFR at under $4/point with that approach. Never done it myself, but have thought if I ever buy resale points I would try to work through a broker that has had success with that approach.

 

[DEScottzz]

Some have reported getting past ROFR at under $4/point with that approach. Never done it myself, but have thought if I ever buy resale points I would try to work through a broker that has had success with that approach.

Does anyone know which brokers may have had success with that approach?

 

[TravelTime]

Does anyone know which brokers may have had success with that approach?

You can just ask your broker to include all the costs in the purchase price. I just asked a broker to do this with a weeks offer. I am not convinced it matters though but can’t hurt. BTW, I do not think anyone has reported getting past ROFR on trust points at under $4 a point recently including activation fees. I think the best price passing ROFR I have heard of was in 2017 and it might have been $4.50 including the activation fee but that was before Marriott increased the activation fee to $3 per point.

 

[Steve Fatula]

You can just ask your broker to include all the costs in the purchase price. I just asked a broker to do this with a weeks offer. I am not convinced it matters though but can’t hurt.

It does matter. If you do real estate, you'll understand the why. There are tricks to it, they have to know how to structure the deal.

I do know a broker with good success, PM me if still interested DEScottzz

 

[TravelTime]

Timeshares are not real estate. I say I am not sure it matters because sometimes the developers exercise and sometimes they do not. No one here can prove it matters. This is not the art of the deal.

 

[dioxide45]

Timeshares are not real estate.

They most certainly are.

 

[TravelTime]

They most certainly are.

I know...we think they are. We call them “our portfolio.” We are like mini-tycoons!

 

[dioxide45]

I know...we think they are. We call them “our portfolio.” We are like mini-tycoons!

They have a deed, they go through probate just as if it were a full deeded property. No different really, just how you use it is different.

 

[TravelTime]

They have a deed, they go through probate just as if it were a full deeded property. No different really, just how you use it is different.

Then we are all real estate tycoons! Little did I know I had amassed an international real estate empire so cheaply. I just wish they would appreciate like my other real estate and that there was a more liquid resale market. Or maybe I should wish my house came with destination points or staroptions instead? How much extra to enroll my house?

 

[Steve Fatula]

Timeshares are not real estate. I say I am not sure it matters because sometimes the developers exercise and sometimes they do not. No one here can prove it matters. This is not the art of the deal.

But it is. No one can prove it, sure, But once you understand the backstory, you know it does make a difference. There is no question about it.