what happens ROFR ?

[korndoc]

I have long read about Hilton, Marriott, etc nixing a resale if too low. I assumed the Hotel chain purchases the unit at the low price and then THEY resell it higher.

But what about the hopeful buyer?

I am on the Big Island now and a friend just told me he purchased at the Bay Cmlub for $30,000 I asked him why he didn't purchase resale and he said he was worried about ROFR. He is afraid if he loses the sale to ROFR he would also lose his money. I told him that was wrong, that if there is no sale he would not lose any money but I really have NO idea what I am talking about. His lawyer told him to stay away from resales for that reason

Please help, he has 9 more days to rescind and I told him I would ask you guys today......and then advised him to join TUG.

Thanks,
Jeff

 

[David M]

I don't believe ROFR is practiced at The Bay Club, other than as a formality.

I'm in the middle of buying a 1BR there (4800 points, for $2500).

ROFR was waived the day after the request was submitted.

If it were me, I'd recind ... and get a new lawyer.

 

[Jason245]

I have long read about Hilton, Marriott, etc nixing a resale if too low. I assumed the Hotel chain purchases the unit at the low price and then THEY resell it higher.

But what about the hopeful buyer?

I am on the Big Island now and a friend just told me he purchased at the Bay Cmlub for $30,000 I asked him why he didn't purchase resale and he said he was worried about ROFR. He is afraid if he loses the sale to ROFR he would also lose his money. I told him that was wrong, that if there is no sale he would not lose any money but I really have NO idea what I am talking about. His lawyer told him to stay away from resales for that reason

Please help, he has 9 more days to rescind and I told him I would ask you guys today......and then advised him to join TUG.

Thanks,
Jeff

JEZUZ that is a ton of money flushed down the toilet.

I won two 1BR bay club EOY units (one even and one odd) for $60 combined cost. They don't ever exercise ROFR. Each of those units is 4800 points.

Even if this person is concerned about EBAY, and wants to pay something, they could probably buy the unit from

http://www.bayclubresaleshawaii.com/Resale_Prices/page_1796694.html

And get the Villa for $10k (8200 points).

It costs nothing to cancel the contract and make a phone call... Hell, Tell the person that I will sell them both of my contracts 1BR EOY bay club for $15k combined price and I will Guarantee passing ROFR or I will give them $1k Cash as compensation for their time (That is a joke, but if they want to take me up on it, I won't stop em), if they are nervouse, use a licensed real estate agent like the ones listed all over, or the one above who claims to be the official bay club resale one.

 

[presley]

Have him call Judi or Seth - both brokers who specialize in HGVC resales. They can tell him exactly what a fair price is and what can pass ROFR.

http://judikoz.com/

http://sellingtimeshares.net/

If he is attached to buying Bay Club, let him know that many TUggers have purchased that for low (under $1K) on Ebay and then Bay Club converted them to HGVC for a few hundred dollars.

 

[dsmrp]

Rescind!

Oh yes, plz get your friend to rescind.
I just bought Bay Club resale this year from a Tug recommended RE agent.
Bay Club waived ROFR in about a couple of weeks. Agent said he's never seen Bay Club exercise ROFR in the 10 years he's been selling.

I offered a somewhat lower price than listed for my unit (7000 pts), and it was accepted. Now the asking prices are even lower.

 

[1Kflyerguy]

For the record, if HGVC were to exercise their right to ROFR at Bay Club or elsewhere, they pay the seller and buyer gets their money back.

The seller is not really impacted, and for buyer just have to start their search and purchase over. Neither party loses money.

 

[JSparling]

For the record, if HGVC were to exercise their right to ROFR at Bay Club or elsewhere, they pay the seller and buyer gets their money back.

The seller is not really impacted, and for buyer just have to start their search and purchase over. Neither party loses money.

Agreed based on first-hand experience. You get all your money back if HGVC exercises ROFR and the contract you sign will say that.

 

[frank808]

Having bought many bay club weeks there is no rofr at bay club. For some reason you have to fill out the rofr paperwork but it has never been exercised to my knowledge.

 

[Jason245]

Having bought many bay club weeks there is no rofr at bay club. For some reason you have to fill out the rofr paperwork but it has never been exercised to my knowledge.

Which is why it is the least expensive buy into hgvc for Plat points (4800 and 7000 point).

The transfer fee is also only 50 bucks.



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[frank808]

Don't forget enrollment fee of $250 a eoy interval. Which is pure profit for hgvc.

 

[alexadeparis]

JEZUZ that is a ton of money flushed down the toilet.

I won two 1BR bay club EOY units (one even and one odd) for $60 combined cost. They don't ever exercise ROFR. Each of those units is 4800 points.

Even if this person is concerned about EBAY, and wants to pay something, they could probably buy the unit from

http://www.bayclubresaleshawaii.com/Resale_Prices/page_1796694.html

And get the Villa for $10k (8200 points).

It costs nothing to cancel the contract and make a phone call... Hell, Tell the person that I will sell them both of my contracts 1BR EOY bay club for $15k combined price and I will Guarantee passing ROFR or I will give them $1k Cash as compensation for their time (That is a joke, but if they want to take me up on it, I won't stop em), if they are nervouse, use a licensed real estate agent like the ones listed all over, or the one above who claims to be the official bay club resale one.

Ditto. He can buy mine too. Like Jason245 I have 2 EOY 4800 Bay club units, I paid $307 All in including enrollment. I hate to hear of people grossly overpaying.

 

[korndoc]

Thank you everyone! I can't wait to find my friend and tell him the good news, plus tell him to join TUG as I found some great deals in the Marketplace he can start looking at.

I do have a question of my own. If "points are points" in the Hilton system, why would any of you who purchased at Bay Club buy there rather than a HGVC property or another non-HGVC in Las Vegas? Wouldn't the maintenance costs be cheaper?

Thanks,
Jeff

 

[dsmrp]

Thank you everyone! I can't wait to find my friend and tell him the good news, plus tell him to join TUG as I found some great deals in the Marketplace he can start looking at.

I do have a question of my own. If "points are points" in the Hilton system, why would any of you who purchased at Bay Club buy there rather than a HGVC property or another non-HGVC in Las Vegas? Wouldn't the maintenance costs be cheaper?

Thanks,
Jeff

The upfront resale prices for true HGVC properties are significantly higher than Bay Club, but Bay Club has higher MFs. I didn't want to spend a lot upfront, since will probably have to give it away later when it doesn't work for us any longer.

Also, for me, at the end of the day, if no HGVC points system existed or they radically changed their rules, we'd still have a unit in Hawaii on an island we like. This is the "buy where you want to go" philosophy you'll see on other forum threads. And we might use during popular use weeks such as Thanksgiving, spring break etc, and being an owner helps.

 

[Jason245]

The upfront resale prices for true HGVC properties are significantly higher than Bay Club, but Bay Club has higher MFs. I didn't want to spend a lot upfront, since will probably have to give it away later when it doesn't work for us any longer.

Also, for me, at the end of the day, if no HGVC points system existed or they radically changed their rules, we'd still have a unit in Hawaii on an island we like. This is the "buy where you want to go" philosophy you'll see on other forum threads. And we might use during popular use weeks such as Thanksgiving, spring break etc, and being an owner helps.

Bay club has lower mf than some non affiliate properties (look at south beach or other hawaii locations mf compared to bay club). The mf are higher at bay club than Orlando and Vegas. Some people prefer to pay more for lower mf others prefer to pay less as the buy into the system knowing that they will have to pay more annually in mf.



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[alexadeparis]

When I looked at the MF for the other Hawaii HGVC's it was comparable at Bay Club, plus buying 4800 points in LV would have been a lot more than $307 in upfront costs. It would take years to recoup that higher upfront purchase price. I am ok with the higher MF in case I decide to book my home resort at 12 months out.

 

[presley]

I do have a question of my own. If "points are points" in the Hilton system, why would any of you who purchased at Bay Club buy there rather than a HGVC property or another non-HGVC in Las Vegas? Wouldn't the maintenance costs be cheaper?

MFs could be cheaper, but you have to figure upfront cost and MF cost over whatever period of time you plan to own/use. Most people use 10 or 20 years. The other big reason why people buy Bay Club is because they want to stay there and in a certain type of unit. You can book what you own 12 months in advance. If you don't own there, you can book 9 months in advance.

 

[alexadeparis]

MFs could be cheaper, but you have to figure upfront cost and MF cost over whatever period of time you plan to own/use. Most people use 10 or 20 years. The other big reason why people buy Bay Club is because they want to stay there and in a certain type of unit. You can book what you own 12 months in advance. If you don't own there, you can book 9 months in advance.

Exactly. I forgot to mention that both of my units are the top floor penthouse 1 bedroom units.

 

[Helios]

Is the HGVC ROFR waiver letter a requirement to close? Or, not hearing from HGVC after x days means that it is waived?