ROFR Thread January to March 2019 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Bryan Burmeister]

See this link here - Disney's return on invested capital is close to 16%. https://www.gurufocus.com/term/ROIC/DIS/ROIC-/Walt-Disney-Co
This means that, when they look at what projects to invest in, they probably give priority to projects that return at least this average 16% - like a new Star Wars ride or a new Marvel movie. Purchasing points so they can sit on them for one year does not make much sense, unless somehow the points would increase in value by a significant amount. But most of the increase in the value of BLT points is driven by the ROFR purchases - the more they ROFR, the higher the price. If really sounds like a bubble.

Ok, we can agree their ROIC is 16%, that makes sense. That same article you linked says that their WACC (Weighted average COST of capital) is around 5%. I thought you were referring to this number in your comment, so that is why I was surprised. Glad for the clarification

 

[TexasChick123]

I’d recommend looking for the best deal. Sometimes the best deal is a higher priced contract with more points available now if you can rent them out to offset the cost. They are passing on more VGF than BLT because VGF is more expensive than BLT, IMO.

 

[LadyLvsTramp]

Can anyone here offer advice or opinion? If you sign a contract with 90 points available this use year and before it closes the seller uses some of the points does that void the contract. I was told the contract by Florida law has to be the same a the agreement/contract you signed? I’m asking for a clause told I’m not getting one!

 

[crvetter]

See this link here - Disney's return on invested capital is close to 16%. https://www.gurufocus.com/term/ROIC/DIS/ROIC-/Walt-Disney-Co
This means that, when they look at what projects to invest in, they probably give priority to projects that return at least this average 16% - like a new Star Wars ride or a new Marvel movie. Purchasing points so they can sit on them for one year does not make much sense, unless somehow the points would increase in value by a significant amount. But most of the increase in the value of BLT points is driven by the ROFR purchases - the more they ROFR, the higher the price. If really sounds like a bubble.

It is definitely a bubble. The resale prices of DVC are most definitely dictated to some degree by Disney because of ROFR (this is the precise reason to have ROFR, which is to prevent something selling below what the person/entity exercising ROFR, Disney, feels); to be honest how many people offer a little extra to get through--this little amount added sums up to a lot over time. Ultimately leading to cost creep.

Now the question to be asked is Disney buying points to fill the need for Direct purchasers who wouldn't buy otherwise? I would say no; this is a by-product of their main intention which is to inflate resale prices and protect their brands interest/image. Their sale numbers of direct purchasers at sold out resorts is so minuscule to the number at the current market resort seem to support the fact that it isn't their main business line of DVC nor that important to financials. The only resort I see them legitimately want to buy through ROFR (for more direct financial reasons) is OKW to prevent the end of life issue over there that they will have. Disney having to maintain 12 years on a large chunk of points.

 

[Lorilais_mommie]

I’d recommend looking for the best deal. Sometimes the best deal is a higher priced contract with more points available now if you can rent them out to offset the cost. They are passing on more VGF than BLT because VGF is more expensive than BLT, IMO.

Also remember BLT has lower MF..

 

[bama314]

bama314---$140-$23030-160-BLT-Feb-0/18, 0/19, 160/20- sent 1/16, taken 2/21

We were really surprise Disney took this one with no 2019 points, but I guess they are taking a lot of BLT lately.

 

[TexasChick123]

Also remember BLT has lower MF..

That’s not the case for 2019. BLT is $6.40 and $6.39. Stupid increases. I own at both, so these stung.

 

[ScubaCat]

Can anyone here offer advice or opinion? If you sign a contract with 90 points available this use year and before it closes the seller uses some of the points does that void the contract. I was told the contract by Florida law has to be the same a the agreement/contract you signed? I’m asking for a clause told I’m not getting one!

That has come up a few times. Many simply cancel at that point since the seller effectively violated to the terms. IMHO, the best thing to do is add a clause into the contract giving the buyer a credit of something like $25 per point difference at closing. That way you can move forward with it but be compensated for the disparity and the hassle. Some of the brokers add that automatically now. That way the seller is discouraged from pulling that little scam and you don't have to restart the process all over.

 

[Paipt]

bama314---$140-$23030-160-BLT-Feb-0/18, 0/19, 160/20- sent 1/16, taken 2/21

We were really surprise Disney took this one with no 2019 points, but I guess they are taking a lot of BLT lately.

Sorry to hear. All of the "waiting" BLT contracts are gradually being moved into the "taken" column. Pretty crazy . . .

 

[jamie3631]

Well just got the word that Disney took our contract. I will submit the string next week as I’m in Disney now but it was 120 points at AKL, October use year, $113 per point, 0 points for 2019 and 120 points for 2020. With the higher price point I was hoping we would pass through. we submitted 1/17, taken 2/21

 

[meekey7197]

Well just got the word that Disney took our contract. I will submit the string next week as I’m in Disney now but it was 120 points at AKL, October use year, $113 per point, 0 points for 2019 and 120 points for 2020. With the higher price point I was hoping we would pass through. we submitted 1/17, taken 2/21

oh wow! nothing should shock me anymore but this one does!

 

[SZQ2019]

Can anyone here offer advice or opinion? If you sign a contract with 90 points available this use year and before it closes the seller uses some of the points does that void the contract. I was told the contract by Florida law has to be the same a the agreement/contract you signed? I’m asking for a clause told I’m not getting one!

We just signed a contract and there was a clause stating that we could cancel the contract OR be compensated 15/per point that was used. Hope that helps.

 

[SZQ2019]

Well just got the word that Disney took our contract. I will submit the string next week as I’m in Disney now but it was 120 points at AKL, October use year, $113 per point, 0 points for 2019 and 120 points for 2020. With the higher price point I was hoping we would pass through. we submitted 1/17, taken 2/21

Hope you can still have a magical time. Sorry.

 

[SZQ2019]

With many going well over 30 days it seems - could folks have set their closing for 31 days from submission? Then disney misses out on ROFR? Of course, I know the mouse always wins - but always trying to think of the "what could be"s...

My understanding is that closing is not set until after ROFR and that Disney has the contractual right to take the contract at any point up until close, but they adhere to the 30(ish) days.

 

[kboo]

Espov---$138-$23290-160-BLT-Feb-0/18, 0/19, 138/20, 160/21- sent 1/17, taken 2/21

bama314---$140-$23030-160-BLT-Feb-0/18, 0/19, 160/20- sent 1/16, taken 2/21

We were really surprise Disney took this one with no 2019 points, but I guess they are taking a lot of BLT lately.

Wow, both of these are somewhat shocking. Wasn't there an old thread around where someone was on the waiting list for BLT for over 6 months for direct points? I wonder if they decided that they could fulfill all the wait lists and make a pretty penny.

 

[SimbaAndSparkles]

Save your emails saying you were sent to ROFR on 1/15.
Perhaps your broker just slipped and said the wrong date, or was looking at some one else’s paperwork, or perhaps they dropped the ball and didn’t get it to ROFR until 1/30 and that broker is now hoping DVC takes it and then they won’t have to explain their mistake to you.
Good luck, it looks like several folks are beyond 30 days waiting, so if it was sent 1/15 you should hear soon.

Still no word...which is making me more and more suspicious that the contract was submitted late, due to the broker's fault/negligence. I definitely have all my emails saved, so I have receipts if needed. Honestly, I don't have high hopes with all the other BLTs that have been taken in recent days. BUT if it DOES slip through AND the broker screwed up (so it's not grandfathered) I don't know how I'll feel...and will expect some form of compensation from the broker, but don't know what would be a reasonable request.

 

[SimbaAndSparkles]

My understanding is that closing is not set until after ROFR and that Disney has the contractual right to take the contract at any point up until close, but they adhere to the 30(ish) days.

When I spoke to my broker, I asked if we could force the closing since Disney has had over 30 days to exercise ROFR. He laughed at me and said they won't do that.

 

[arminnie]

Espov---$138-$23290-160-BLT-Feb-0/18, 0/19, 138/20, 160/21- sent 1/17, taken 2/21

bama314---$140-$23030-160-BLT-Feb-0/18, 0/19, 160/20- sent 1/16, taken 2/21

Wow, both of these are somewhat shocking. Wasn't there an old thread around where someone was on the waiting list for BLT for over 6 months for direct points? I wonder if they decided that they could fulfill all the wait lists and make a pretty penny.

I hate this for those trying to buy. But as a seller this helps me figure out how to price my BLT 200 pt October use year contract (also stripped until 2020). I am not trying to screw over potential buyers, but this helps me figure out what is most likely to get thru RFO. There was not that much info available to me as a seller of an OKW contract (extended). I know I priced way too low based on my broker's recommendation (a broker I will not use again). A broker who once sent me an offer at $53 dollars a point (in 2018) - I did not accept this offer. It was eventually snapped up by Disney RFO which probably helped me as I wanted a quick closing before 2018 ended for tax purposes. But I truly prefer an win/win situation for all. I ended up feeling like it was a lose/lose situation for both me as the seller and the potential buyer. I probably could have gotten few dollars more and the buyer may have made it thru RFO.

 

[Lorilais_mommie]

bama314---$140-$23030-160-BLT-Feb-0/18, 0/19, 160/20- sent 1/16, taken 2/21

We were really surprise Disney took this one with no 2019 points, but I guess they are taking a lot of BLT lately.

I’m so sorry.. I’m shocked they took this one. After passing my front loaded one at the same price per point.
This all but confirms it for me. They are after BLT stripped contacts with a feb use year..

Hope you try again soon.

 

[bama314]

I’m so sorry.. I’m shocked they took this one. After passing my front loaded one at the same price per point.
This all but confirms it for me. They are after BLT stripped contacts with a feb use year..

Hope you try again soon.

We just decided to join DVC a few months ago and were able to get one BLT contract through at a cheaper price than this one. We needed this contract to get the total points we needed. We will try again. We were hoping this contract would pass since it was submitted before the 1/19 deadline, but the new restrictions do not matter that much to us. We like the current 14 resorts.