small point contracts

traveldaddy · May 21, 2014

I'm still a newbie, so bear with me if this has been asked before. I coudln't find it with the search function.

What are the disadvantages of a small point value contract?
The context is adding to an existing account to get some more points

What (I think) I understand:

1. Smaller contracts would be harder to sell (so it matters for an exit strategy) due to a single contract owner having higher program fees/point. Not relevant for an owner of multiple contracts though, correct?

2. Smaller contacts could have less ARP value, if you cannot book the unit size that you would like

3. Smaller contracts have (potentially) higher acquisition costs. If you have to pay the resort transfer fee as an example, you end up with more $/point in costs

So if you have existing points at one resort, can you add smaller contracts to 'average' down your cost per point if the seller is paying the closing costs (and subject to the risks above)? Are there other risks that I am missing?

Craig

markb53 · May 21, 2014

traveldaddy said:
I'm still a newbie, so bear with me if this has been asked before. I coudln't find it with the search function.

What are the disadvantages of a small point value contract?
The context is adding to an existing account to get some more points

What (I think) I understand:

1. Smaller contracts would be harder to sell (so it matters for an exit strategy) due to a single contract owner having higher program fees/point. Not relevant for an owner of multiple contracts though, correct?

2. Smaller contacts could have less ARP value, if you cannot book the unit size that you would like

3. Smaller contracts have (potentially) higher acquisition costs. If you have to pay the resort transfer fee as an example, you end up with more $/point in costs

So if you have existing points at one resort, can you add smaller contracts to 'average' down your cost per point if the seller is paying the closing costs (and subject to the risks above)? Are there other risks that I am missing?

Craig

I think you have it pretty much covered. I did the same thing you are thinking about doing.
I have 2 very small developer purchased CWA(Club Wyndham Access) contracts adding up to 182k. I decided to buy a resale 210k EOY (every other year) at Panama City Beach. My MF is based on 287k per year which is above the minimum program fee. Before the new purchase my cost/k was above 5.60. Now it is about 4.95/k.

uscav8r · May 21, 2014

See this thread:
http://www.tugbbs.com/forums/showthread.php?t=195933

There can be uses for buying a small contract, namely to add names to a membership cheaply IF:

- you can get the small contract with low or no closing costs
- total cost is around the $299 Wyndham transfer fee.

I just did this for a 32k contract that I got for $350 out the door. That's a high acquisition price per point, but could save me $99 guest charges and if anything ever happens to me, the remaining owners are not stuck with a significant mf liability. (Mine commits them to less than $14/month).

That and the fact that I have plenty of points already outweighed any resale or ARP issues with small contracts.

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traveldaddy · May 21, 2014

Thanks

So some of the knowledge is starting to stick?!? :ponder:

There I go again making assumptions again! :wall:

On a serious note: Thanks for the responses, it is appreciated and helpful.

Craig

comicbookman · May 21, 2014

uscav8r said:
See this thread:
http://www.tugbbs.com/forums/showthread.php?t=195933

There can be uses for buying a small contract, namely to add names to a membership cheaply IF:

- you can get the small contract with low or no closing costs
- total cost is around the $299 Wyndham transfer fee.

I just did this for a 32k contract that I got for $350 out the door. That's a high acquisition price per point, but could save me $99 guest charges and if anything ever happens to me, the remaining owners are not stuck with a significant mf liability. (Mine commits them to less than $14/month).

That and the fact that I have plenty of points already outweighed any resale or ARP issues with small contracts.

Sent from my iPhone using Tapatalk

I just did the same. Got a 63,000 out the door for $138, with decent MF's.

traveldaddy · May 21, 2014

Quick question on that - is ther a limit to the number of names that can be added to an account in this way?

Buy 32K, add a sister
Buy 26K, add brother in law
.....etc....

How many people can you get added this way? I can think of 7 family members I would consider this with in addtion to the spouse and I that are there already. Does Wyndham shut you down on the number of peeps eventually?

Craig

lcml11 · May 21, 2014

traveldaddy said:
Quick question on that - is ther a limit to the number of names that can be added to an account in this way?

Buy 32K, add a sister
Buy 26K, add brother in law
.....etc....

How many people can you get added this way? I can think of 7 family members I would consider this with in addtion to the spouse and I that are there already. Does Wyndham shut you down on the number of peeps eventually?

Craig

A cheaper way is to buy a small points contract (deed) and add everyone you want to.

uscav8r · May 21, 2014

traveldaddy said:
Quick question on that - is ther a limit to the number of names that can be added to an account in this way?

Buy 32K, add a sister

Buy 26K, add brother in law

.....etc....

How many people can you get added this way? I can think of 7 family members I would consider this with in addtion to the spouse and I that are there already. Does Wyndham shut you down on the number of peeps eventually?

Craig

No limit, really. It just depends on how complicated you want it to be. For my recent purchase I have 3 "new" names: 2 family members and a "brother-from-another-mother" from college, and we all live in different parts of the country, so you can't get much more complex than that (aside from sheer quantity)!

I recall from a similar thread in which Ron Parise posted a screenshot of his account; it had his name, variations of his name, and variations of different DBA names, all listed as "owners." Not every one of those was all on a single deed (he has dozens of contracts), but he had at least a dozen "owners" on the same account (with really only one person behind it all)! Now that's creative!

Found the thread regarding Wyndham cancelling overlapping reservations if no Guest Cert is used: http://tugbbs.com/forums/showthread.php?t=207117&highlight=overlapping

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traveldaddy · May 22, 2014

Thanks to all for the responses

It is appreciated. :clap:

Craig

comicbookman · May 22, 2014

lcml11 said:
A cheaper way is to buy a small points contract (deed) and add everyone you want to.

We have six (soon to be seven) owners on the account. Myself, My spouse, 2 kids, 2 variations on my wife's name and soon a close family friend that is a sort of adopted daughter. My son is 19 (so he cannot, even as an owner check in without a 21 year old) and all the rest are over 21. Not as fancy as Ron, but it covers most of the possibilities.

New2time · May 25, 2014

What is the cost to add a name after contract is complete? My son just turned 21 and thinking of adding him to our contract?

ronparise · May 25, 2014

New2time said:
What is the cost to add a name after contract is complete? My son just turned 21 and thinking of adding him to our contract?

The cost is the same as to buy a new contract

The process is that you have to "sell" the contract to the new owners, ie you will "sell" to you and your son

So:

pay someone to prepare a new deed (or do it yourself)
pay the county to record the new deed
pay Wyndham's $299 transfer fee.

A CWA contract (no deed) you will do yourself, so the only cost will be Wyndhams $299

lcml11 · May 25, 2014

ronparise said:
The cost is the same as to buy a new contract

The process is that you have to "sell" the contract to the new owners, ie you will "sell" to you and your son

So:

pay someone to prepare a new deed (or do it yourself)
pay the county to record the new deed
pay Wyndham's $299 transfer fee.

A CWA contract (no deed) you will do yourself, so the only cost will be Wyndhams $299

If I remember right, once upon a time, it was one hundred dollars just to add a name to the deed. You may want to call Wyndham Vacation Resorts Title Department.

ronparise · May 25, 2014

lcml11 said:
If I remember right, once upon a time, it was one hundred dollars just to add a name to the deed. You may want to call Wyndham Vacation Resorts Title Department.

You cant "just add a name to a deed" You have to create a new deed.... adding new name is no different than a sale to new owners, (recording fees, etc as well as Wyndhams pound of flesh)

The transfer fee was $100 its $299 now

foofoo528 · May 28, 2014

buying small points and adding names

bought two timeshares off of ebay and only put my name on it.

I am thinking of buying another two timeshares in the next month.... do i add my partner"s name, sister, mother, brother and sister..... in order to have additional people on the account....Is it all under one membership number?
Does it matter if it is a Access account vs. "club" account. Is the only benefit to it overlapping?

Thanks

joanncanary · May 29, 2014

Multiple contracts to add names

I just bought another small contract so I could add my one daughters name plus I wanted to get a second RCI account. Will this happen, the new RCI account? My first contract had 4 names on it for Wyndham but when it went to RCI it only contained two. I want to get a new RCI account so I can sort of avoid some of the 1 in 4 year rule or only a specified number of rooms. I am hoping that wyndham will treat this as a separate account and give me another RCI free account. Your thoughts?

vacationhopeful · May 29, 2014

Sorry, no second RCI account unless Wyndham gives you a NEW member number - which means that relative (& you) will only have that small contract points.

Just buy the RCI Guest Certificate - cheaper than the GCs with Wyndham (for now :ignore

.

pedro47 · May 29, 2014

This is my opinion only small contracts are waste of money unless you can combine it with your current point contract. .

uscav8r · May 29, 2014

pedro47 said:
This is my opinion only small contracts are waste of money unless you can combine it with your current point contract. .

Technical correction: Contracts themselves cannot be combined per se (i.e., combine a 32k Bali Hai with a 300k Bali Hai to make a single 332k Bali Hai).

Contracts can be combined under one membership number, so this example would have one membership with two Bali Hai contracts. The only requirement is for there to be at least one common member name (generally one(s) that the original membership started with) listed as an owner on both contracts. ALL owners across both contracts/deeds would be listed as "owners" under the single membership number.

I was actually under your same line of thinking until I had a need to cheaply add names to my account!

spackler · Oct 31, 2014

pedro47 said:
This is my opinion only small contracts are waste of money unless you can combine it with your current point contract. .

One advantage to buying smaller contracts is that you are spreading out your SA risk, although simply buying into CWA would also accomplish that.

small point contracts

traveldaddy

markb53

uscav8r

TUG Review Crew: Expert

traveldaddy

comicbookman

traveldaddy

lcml11

uscav8r

TUG Review Crew: Expert

traveldaddy

comicbookman

New2time

ronparise

lcml11

ronparise

foofoo528

joanncanary

vacationhopeful

TUG Review Crew: Rookie

pedro47

TUG Review Crew: Expert

uscav8r

TUG Review Crew: Expert

spackler