Turn in or sell Marriott destination points [2500] annual

[beachgoers]

Marriott has offered to take back destination rewards points deed for free and it is for 5,000 annual points and refund this years fees. If they are privately sold how does it work? Is there a ROFR? What are the transfer fees? Someone said it would be $10,000 to transfer.

 

[StevenTing]

Marriott has offered to take back destination rewards points deed for free and it is for 5,000 annual points and refund this years fees. If they are privately sold how does it work? Is there a ROFR? What are the transfer fees? Someone said it would be $10,000 to transfer.

You mean you're just going to give them back the points? I would sell them for $5 a piece in the open market. Even if they get ROFR, that means that you'll still make back $25000. The person buying them would have to pay the transfer fee.

So even if you discount the price to $4 a piece, that's $20,000 back in your pocket. At $4 you're almost guaranteed that they will be ROFR.

Don't give them back for free. I'm assuming you're talking about Destination Club Points.

 

[taterhed]

Marriott has offered to take back destination rewards points deed for free and it is for 5,000 annual points and refund this years fees. If they are privately sold how does it work? Is there a ROFR? What are the transfer fees? Someone said it would be $10,000 to transfer.

If you aren't comfortable selling these, call a competent broker now!
These will sell. The current ROFR is about $5. A good broker (or Tugger) will have the most recent number.

The points will sell at about $5. The new owner will pay $2 a point plus some small fees ($1500 min). You will pay nothing (but your MF fee which is already spent). You SHOULD write the contract to read $x a point (around $5) AND buyer pays all fees and refunds the 2016 MF to seller. If you sell at descent price, Marriott will be unlikely to ROFR and be forced to pay you $ MF for 2016.

DO NOT RETURN TO MARRIOTT!!!!!

Call Samuel Rodriguez @ Sellingtimeshares.net, a trusted TUG broker firm owned by SethNoc (a well-known broker). He will help you out. There are others as well...search the board.

good luck

 

[SueDonJ]

I agree, there should be value to these on the external market. It'll certainly be easier to just give them back to Marriott but if you're not in a hurry ...

I'm wondering about Marriott's take-back offer, though. If this isn't a component of some sort of bundle purchase through Marriott Resales Operations, as far as I know you're the first TUGger to be successful in getting MVW to simply take back DC Points. Is this beyond the rescission period? Are there special terms? Can you please share the circumstances? Thanks!

[Ignore - Edit/Moderator Test.]

 

[StevenTing]

I agree, there should be value to these on the external market. It'll certainly be easier to just give them back to Marriott but if you're not in a hurry ...

I'm wondering about Marriott's take-back offer, though. If this isn't a component of some sort of bundle purchase through Marriott Resales Operations, as far as I know you're the first TUGger to be successful in getting MVW to simply take back DC Points. Is this beyond the rescission period? Are there special terms? Can you please share the circumstances? Thanks!

I am aware of another individual who was able to give back points that was posted on VPE. I believe they gave back 2000 points for free when they could have sold them for $4 a point back in the day.

 

[SueDonJ]

I am aware of another individual who was able to give back points that was posted on VPE. I believe they gave back 2000 points for free when they could have sold them for $4 a point back in the day.

I can't help but think that the circumstances must play a part. MVW isn't in the habit of just taking back DC Points that any owners don't want to own anymore! The current quasi-routine buyback activity for Weeks didn't start up until after they stopped selling Weeks - if they're now instituting some kind of no-questions-asked take-back program for Points, then it's a new wrinkle that many people will want to know about.

 

[Fasttr]

I can't help but think that the circumstances must play a part. MVW isn't in the habit of just taking back DC Points that any owners don't want to own anymore! The current quasi-routine buyback activity for Weeks didn't start up until after they stopped selling Weeks - if they're now instituting some kind of no-questions-asked take-back program for Points, then it's a new wrinkle that many people will want to know about.

If they are ROFR'ing below $5, why would they not want to take back at a cost of $0. The only thing they are out is the MF's until they can sell the points again for $50K +/-.

Seems like a no brainer, as long as they foresee the need for more points in the relatively short term (year or so).

 

[SueDonJ]

If they are ROFR'ing below $5, why would they not want to take back at a cost of $0. The only thing they are out is the MF's until they can sell the points again for $50K +/-.

Seems like a no brainer, as long as they foresee the need for more points in the relatively short term (year or so).

Yeah, but it's been a no-brainer since the day they started selling DC Points! It was a no-brainer when Weeks were the only game in town, too, but they didn't ever do routine take-backs in those days, either!

How many posts have we seen on TUG about DC Points - or any timeshare purchase - not being a good purchase because there's no simple Exit Strategy?! How many TUGgers said they would never buy DC Points until there is a program to give back unwanted DC Points, even if MVW doesn't pay anything for them?!

I just want to be clear on whether they're now taking back DC Points as a matter of course or do certain circumstances dictate it.

 

[dioxide45]

I thought that the points surrender program was already written in to the contract? So the OP should be able to get 60 cents on the dollar.

http://www.tugbbs.com/forums/showthread.php?t=236322&highlight=contract

 

[Fasttr]

I just want to be clear on whether they're now taking back DC Points as a matter of course or do certain circumstances dictate it.

I highly doubt its something that is guaranteed to be there if and when anybody wants to return them, but more likely based on facts and circumstances of MVC's need/desire to acquire points, followed by (and much lower on the scale I am sure) would be the owner's circumstances as well.

I just think in a climate where they are actively ROFR'ing, taking them back at $0 makes a lot of sense for them.

 

[taterhed]

I thought that the points surrender program was already written in to the contract? So the OP should be able to get 60 cents on the dollar.

http://www.tugbbs.com/forums/showthread.php?t=236322&highlight=contract

Ha ha ha ha....ROFL

:hysterical:

Let me see that in writing please......

 

[taterhed]

I highly doubt its something that is guaranteed to be there if and when anybody wants to return them, but more likely based on facts and circumstances of MVC's need/desire to acquire points, followed by (and much lower on the scale I am sure) would be the owner's circumstances as well.

I just think in a climate where they are actively ROFR'ing, taking them back at $0 makes a lot of sense for them.

oooh ooh !!

Here's a great test: Let's all find somebody to sell us points at $1 and see if Marriott exercises ROFR. I'd be happy for $1 points and we could answer the question!

 

[SueDonJ]

oooh ooh !!

Here's a great test: Let's all find somebody to sell us points at $1 and see if Marriott exercises ROFR. I'd be happy for $1 points and we could answer the question!

Here's a better test. Everybody who owns DC Trust Points, call Owner Services: "Um, hi, I don't want these Points anymore. I hear you're allowing people to give them back. Where should I send them?"

I'll be shocked if MVW takes any of them back no questions asked!

 

[StevenTing]

oooh ooh !!

Here's a great test: Let's all find somebody to sell us points at $1 and see if Marriott exercises ROFR. I'd be happy for $1 points and we could answer the question!

The OP has 5000 points. I suggest starting your search there.

 

[dioxide45]

I highly doubt its something that is guaranteed to be there if and when anybody wants to return them, but more likely based on facts and circumstances of MVC's need/desire to acquire points, followed by (and much lower on the scale I am sure) would be the owner's circumstances as well.

I just think in a climate where they are actively ROFR'ing, taking them back at $0 makes a lot of sense for them.

I think this has been discussed before, but I think it may come down to accounting. It may become suspect if VAC is declaring a certain value to unsold assets on their balance sheet while acquiring the inventory for $0. How can they claim the asset has value on their balance sheet when they themselves have indicated that there is no value when they take a week back for nothing?

 

[Fasttr]

I think this has been discussed before, but I think it may come down to accounting. It may become suspect if VAC is declaring a certain value to unsold assets on their balance sheet while acquiring the inventory for $0. How can they claim the asset has value on their balance sheet when they themselves have indicated that there is no value when they take a week back for nothing?

They would book the reacquired 5000 points at a cost of $0. Don't see how that is an issue from an accounting perspective. That doesn't mean that other points acquired in a different way (ROFR, build out of Grande Chateau , unsold week tossed into the Trust at the beginning, etc, etc) can't have its own underlying cost.

You may be confusing this with the concept of Lower of Cost or Market, whereby if they can no longer sell the points for an amount exceeding their book costs, they would have to write down the cost to the market sell price.

 

[dioxide45]

They would book the reacquired 5000 points at a cost of $0. Don't see how that is an issue from an accounting perspective. That doesn't mean that other points acquired in a different way (ROFR, build out of Grande Chateau , unsold week tossed into the Trust at the beginning, etc, etc) can't have its own underlying cost.

You may be confusing this with the concept of Lower of Cost or Market, whereby if they can no longer sell the points for an amount exceeding their book costs, they would have to write down the cost to the market sell price.

There has to be some reason that they never took back weeks when they sold weeks and they are now not taking back points when they sell points. They now take back weeks to resell as points. When they sold weeks they would broker resale weeks and sell them at the same price as developer weeks as not to compete with weeks that they sold. Though they rarely if ever brokered weeks at resorts where they were in active sales. They didn't want broker weeks to compete again unsold inventory.

I, like you, am also trying to figure out why they won't take back points for $0. There has to be some reason other than stupidity?

 

[BocaBoy]

My understanding (from somewhere I can't recall) is that in some cases under the weeks program, Marriott would in fact take back the deed to a week for nothing, usually when the buyer could not or would not pay and the alternative appeared to be foreclosure. It was not an automatic thing.

 

[dioxide45]

My understanding (from somewhere I can't recall) is that in some cases under the weeks program, Marriott would in fact take back the deed to a week for nothing, usually when the buyer could not or would not pay and the alternative appeared to be foreclosure. It was not an automatic thing.

This is a deed in lieu, and is quite common in residential real estate. It is a means to avoid additional costs of foreclosure on the lender or HOA.

They don't seem to have a true deed back avenue for those that want out who are current on all payments. This is the same in the mortgage industry. They won't deed back from someone who is current. You have to take the credit hit in order to get this kind of offer. I don't think the threat of not paying is enough, you have to prove it.

 

[Fasttr]

Marriott has offered to take back destination rewards points deed for free and it is for 5,000 annual points and refund this years fees. If they are privately sold how does it work? Is there a ROFR? What are the transfer fees? Someone said it would be $10,000 to transfer.

beachgoers... I am trying to understand your various posts. In this one, you are contemplating giving MCV your 5000 points, but in THIS post in the ROFR Sticky thread, you are contemplating the purchase of a Grande Ocean week.

Do you still owe lots of $$ on the 5000 points and are getting out from under that debt and in exchange you plan to fork out a bit less money for the GO resale week?

Just looking to understand the situation and your motivations better.

 

[taterhed]

They are thinking of buying DC points or MGO week from distant Cousins. They don't know value/ options on either. We have since pm'd about it

sent from my cell phone...

 

[thinze3]

$0 per point? It's conceivable.

Just like 75% of all Marriott's weeks, the value of the DC points is inching closer to $0 . Most eBay sales for DC points are now for about $2-$3/point - and still falling.

Marriott's lumping all seasons of a resort into one and then dividing them up into "points" has yet to be proven successful.

An example is a week I own at Legends Edge. It is platinum and almost worthless. Manor Club is another example. You would probably have to pay someone to take anything other than a platinum week. Lumped together the average worth of each week may be below zero - and still falling as MF's go up.

Imagine taking that entire resort and dividing it into points. How much are those points really worth? :ignore:

How much are all Marriott timeshares put together and divided into points really worth.

 

[beachgoers]

beachgoers... I am trying to understand your various posts. In this one, you are contemplating giving MCV your 5000 points, but in THIS post in the ROFR Sticky thread, you are contemplating the purchase of a Grande Ocean week.

Do you still owe lots of $$ on the 5000 points and are getting out from under that debt and in exchange you plan to fork out a bit less money for the GO resale week?

Just looking to understand the situation and your motivations better.

Sorry for the multiple posts and confusion i have caused. Our good friends have a week and separate 5000 points. We aren't buying the week and selling or giving back points. They have both the week and the points. We are going to buy their week and hope it passes the ROFR. The separate thing/question here is that they have the 5000 points that they do not know how to work and use. They try and use them for other places. They are tired of all the fees annually and they don't end up using their week or the points each year. So they are offering us an opportunity on the points as well because they would hate to just give them back to marriott for nothing. When they called they were told they could just give them back. Yesterday they were told that they could sell them to us. They are willing to almost just give them to us. We just don't believe there is any way to do that. Because of that I just want the week and not the points. But if we could figure out a way to get the points at a very low cost say $2,000 we would do it. But it sounds like the transfer cost is $10,000 through marriott at $2 per point and the purchase price needs to be over $4.50 per point to pass the ROFR. We would be looking to do this for $.40 per point which will not work. Even if we are not going to buy the points we would like to help our friends with advice on how they should proceed rather than just giving them back (they were also offered a refund of the 2016 Fees if they gave them back for free). I think they should list the points for sale at $2 a point and hope Marriott proceeds with the ROFR. They will then get $10,000 for the points. That is better than just getting the fees back.

 

[dioxide45]

Do they still owe on a mortgage on those 5000 points? If so, even if they could sell them for $2 a point, they would still owe whatever balance is due on the mortgage. If they don't have a mortgage, a $40,000 hit is hard to swallow. This is because those points would have cost close to $50,000 when they were purchased. To turn around and sell them for $10,000 would be painful.

They would be best if they signed up for TUG and learned how to best use their points and their week that is likely eligible to be converted to DC points (if it was bought by them from Marriott). Once that week is sold on the external market, it loses its ability to convert to DC points forever.

I know that if they learn to use their week and points, it doesn't help you with buying a week, but there are plenty of other ones out there.

 

[Fasttr]

Sorry for the multiple posts and confusion i have caused. Our good friends have a week and separate 5000 points. We aren't buying the week and selling or giving back points. They have both the week and the points. We are going to buy their week and hope it passes the ROFR. The separate thing/question here is that they have the 5000 points that they do not know how to work and use. They try and use them for other places. They are tired of all the fees annually and they don't end up using their week or the points each year. So they are offering us an opportunity on the points as well because they would hate to just give them back to marriott for nothing. When they called they were told they could just give them back. Yesterday they were told that they could sell them to us. They are willing to almost just give them to us. We just don't believe there is any way to do that. Because of that I just want the week and not the points. But if we could figure out a way to get the points at a very low cost say $2,000 we would do it. But it sounds like the transfer cost is $10,000 through marriott at $2 per point and the purchase price needs to be over $4.50 per point to pass the ROFR. We would be looking to do this for $.40 per point which will not work. Even if we are not going to buy the points we would like to help our friends with advice on how they should proceed rather than just giving them back (they were also offered a refund of the 2016 Fees if they gave them back for free). I think they should list the points for sale at $2 a point and hope Marriott proceeds with the ROFR. They will then get $10,000 for the points. That is better than just getting the fees back.

I agree, assuming the points are paid for, the lowball sale price concept for their points is a valid approach. Purchaser is taking a shot at it slipping past ROFR and whether it does or not, your friends pick up some cash.

That said, it seems the best approach would be for your friends to join TUG and learn how to maximize their ownership of the 5000 points which they clearly paid a lot of $$$ for. Even if they no longer enjoy usage at timeshare type resorts, the points can be used for Explorer Collection options (airfare, cruises, city hotel stays, adventure getaways, etc). While most would agree those options do not offer the best bang for the buck regarding usage of the points, they would at least be getting some value out of them.