Contracts drying up??

[BrianLo]

So basically the unspoken secret that the second ROFR monster is actually DVCRM.

I’m also a bit surprised to learn their 7 month window is 14$. What do they charge renters in that window?

Nothing illegal, but they both are under representing sellers interests and driving up the resale market by stripping value out of contracts if this is a common maneuver.

 

[HyperspaceMountainPilot]

So basically the unspoken secret that the second ROFR monster is actually DVCRM.

I’m also a bit surprised to learn their 7 month window is 14$. What do they charge renters in that window?

Nothing illegal, but they both are under representing sellers interests and driving up the resale market by stripping value out of contracts if this is a common maneuver.

I think this is an interesting way to think about it—though they are snatching contracts before they ever come available to buyers with the “instant sale” price. I’m just assuming the real estate fiduciary duties for time share brokers are minimal.

 

[AstroBlasters]

I think this is an interesting way to think about it—though they are snatching contracts before they ever come available to buyers with the “instant sale” price. I’m just assuming the real estate fiduciary duties for time share brokers are minimal.

If you go through their estimate tool they give a brokers estimate price and then an instant sales price. They disclose that they believe the instant sales price is below market value.

https://www.dvcresalemarket.com/selling/instant-sale/

Their estimates are always much higher than I would pay, but we are also a hyper educated niche of the buying pool.

 

[Sandisw]

If you go through their estimate tool they give a brokers estimate price and then an instant sales price. They disclose that they believe the instant sales price is below market value.

https://www.dvcresalemarket.com/selling/instant-sale/

Their estimates are always much higher than I would pay, but we are also a hyper educated niche of the buying pool.

And to add to this, they do encourage you to try and list and get higher than the instant sale price because of the costs. They were completely upfront with me about it....

 

[ChipTheRescueRanger]

Lots of contracts in the last few days but most with 0 24 points and none in my use year haha

 

[VGCgroupie]

Lots of contracts in the last few days but most with 0 24 points and none in my use year haha

There has been 1 or 2 good contracts lately and they have sold within the hour. Everything else is very very overpriced imo (excluding VGC since its in its own category for whats a deal)

 

[kboo]

huh. a few years ago I bought a well-priced VGF contract (my first) that wasn't stripped but had no current UY points. It made sense for us because we didn't need more points right then, and I was surprised to find that the seller was Monera Financial when we closed.

They're the financing arm for the board sponsor, no? Do the finance direct purchases, or do they buy DVD-financed loans, or something else? I'm curious because I think I traced my deed back and the last *person* who owned it had bought direct. I don't think there was an instant sale provision back then.

 

[VGCgroupie]

huh. a few years ago I bought a well-priced VGF contract (my first) that wasn't stripped but had no current UY points. It made sense for us because we didn't need more points right then, and I was surprised to find that the seller was Monera Financial when we closed.

That was likely a foreclosure since they finance DVC resales.

 

[kboo]

That was likely a foreclosure since they finance DVC resales.

I edited my post while you were responding - would they have bought at foreclosure? The initial buyer had bought direct and then there was a transfer to Monera. We didn't finance; Monera was the seller.

 

[atthebeachclub]

I edited my post while you were responding - would they have bought at foreclosure? The initial buyer had bought direct and then there was a transfer to Monera. We didn't finance; Monera was the seller.

Monera probably foreclosed on the last owner for nonpayment. Monera can finance just about any DVC situation I suspect, which probably leads to plenty of foreclosures.

 

[VGCgroupie]

I edited my post while you were responding - would they have bought at foreclosure? The initial buyer had bought direct and then there was a transfer to Monera. We didn't finance; Monera was the seller.

Typically when bought direct with financing you’ll see that in the comptrollers site as a separate document.

 

[Chili327]

Not sure where it was being tracked (possibly earlier in this thread?), but DVCforLess.com is back over 1,000 contracts.

Also, i'd like to report i just made the last payment, & im paid off on all 5 contracts.
Paid a few extra bucks this year to get them all, but gladly paid all off within a reasonable amount of time for each.

 

[VGCgroupie]

Not sure where it was being tracked (possibly earlier in this thread?), but DVCforLess.com is back over 1,000 contracts.

It's all these new Aulani contracts

Also, i'd like to report i just made the last payment, & im paid off on all 5 contracts.
Paid a few extra bucks this year to get them all, but gladly paid all off within a reasonable amount of time for each.

Congrats!!

 

[ocdb8r1]

That appears to be an Indiana company with a contact name of Timothy H. Button who appears to be an attorney specializing in contract drafting, asset purchases, commercial and residential real estate, land use matters, etc.

I recall that shows from DVCRM have mentioned being headquartered in Indiana.

This sent me down a dark rabbit hole that ended up in discouragement and cynicism. I had no idea that all the World of Disney services are just one big private equity machine built to extract as much value as possible from DVC owners. Looks like aside from some of the other things talked about (flipping stripped contracts), they also are very active buying contracts in foreclosure to flip and resell. Depressing.

 

[pzw90]

This sent me down a dark rabbit hole that ended up in discouragement and cynicism. I had no idea that all the World of Disney services are just one big private equity machine built to extract as much value as possible from DVC owners. Looks like aside from some of the other things talked about (flipping stripped contracts), they also are very active buying contracts in foreclosure to flip and resell. Depressing.

They cant be THAT bad, they have pixie dust follow your mouse on their sites

 

[Brian Noble]

I had no idea that all the World of Disney services are just one big private equity machine built to extract as much value as possible from DVC owners.

Well, capitalism. Late-stage, no less.

 

[pzw90]

This sent me down a dark rabbit hole that ended up in discouragement and cynicism. I had no idea that all the World of Disney services are just one big private equity machine built to extract as much value as possible from DVC owners. Looks like aside from some of the other things talked about (flipping stripped contracts), they also are very active buying contracts in foreclosure to flip and resell. Depressing.

Sometimes its best not to know how the sausage is made. Sometimes its easier to go along with the happy blogs and smiles and be excited by the "up to 60%" off direct and not dig any further. They aren't your friends, its a business and its all designed to make a profit. The more they can bring in house the more they make. Start a financing leg, great now you can push that from your brokerage side and when people default (could it happen when they offer no credit check and a 18% APR?), guess where it comes right back to after taking at least a deposit and a few payments, oh wait and while it sits on the market they can make ~$24+ pp renting their own inventory through their rental shop. Maybe not purely private equity, more of a big fish in a small pond.

 

[ocdb8r1]

Sometimes its best not to know how the sausage is made. Sometimes its easier to go along with the happy blogs and smiles and be excited by the "up to 60%" off direct and not dig any further. They aren't your friends, its a business and its all designed to make a profit. The more they can bring in house the more they make. Start a financing leg, great now you can push that from your brokerage side and when people default (could it happen when they offer no credit check and a 18% APR?), guess where it comes right back to after taking at least a deposit and a few payments, oh wait and while it sits on the market they can make ~$24+ pp renting their own inventory through their rental shop. Maybe not purely private equity, more of a big fish in a small pond.

...but that's part of the depressing part. They control a giant piece of the market (due to deep pocket private equity backing), the size allows them unprecedented ability to squeeze every advantage out of the market AND they control the "narrative" around all of this, normalizing the whole cycle. ANYhow, first world problems.

 

[ChipTheRescueRanger]

Must not get suckered in to overpay due to lack of contracts