Ebay Buying Strategy

johnluyando · May 23, 2016

Hi all!

A few weeks back, I decided that I would go after Wyndham contracts in order to try the rental game. I figured that I couldn't get that hurt buying a few resale contract to learn the business. Worst case scenario, I take a few more vacations and call it an educational expense.

My strategy is to bid on low MF contracts some with left over points remaining. My bid always is made in the last 3-5 seconds (most of you know how this is accomplished) and have been generous based on recent sales. Unfortunately, I have yet to win a contract. Is it the time of year that is creating a higher demand? I don't think I am being cheap but maybe that's the case.

I realize that I am ask my potential auction competition for advice but I would appreciate any guidance that you all could share.

Thanks!

philemer · May 23, 2016

Not unusual. Just pick a max. snipe bid that you can live with and forget it. The lower the annual fee the higher I'd bid. But you have some tough competition in the rental world. The mega-renters can rent for less than your annual fees. Just look on ebay. I was quoted less than $750/wk for a 2BR unit at a nice resort in HI during January.

johnluyando said:
Hi all!

A few weeks back, I decided that I would go after Wyndham contracts in order to try the rental game. I figured that I couldn't get that hurt buying a few resale contract to learn the business. Worst case scenario, I take a few more vacations and call it an educational expense.

My strategy is to bid on low MF contracts some with left over points remaining. My bid always is made in the last 3-5 seconds (most of you know how this is accomplished) and have been generous based on recent sales. Unfortunately, I have yet to win a contract. Is it the time of year that is creating a higher demand? I don't think I am being cheap but maybe that's the case.

I realize that I am ask my potential auction competition for advice but I would appreciate any guidance that you all could share.

Thanks!

scootr5 · May 23, 2016

johnluyando said:
Hi all!

A few weeks back, I decided that I would go after Wyndham contracts in order to try the rental game. I figured that I couldn't get that hurt buying a few resale contract to learn the business. Worst case scenario, I take a few more vacations and call it an educational expense.

My strategy is to bid on low MF contracts some with left over points remaining. My bid always is made in the last 3-5 seconds (most of you know how this is accomplished) and have been generous based on recent sales. Unfortunately, I have yet to win a contract. Is it the time of year that is creating a higher demand? I don't think I am being cheap but maybe that's the case.

I realize that I am ask my potential auction competition for advice but I would appreciate any guidance that you all could share.

Thanks!

First off, it's very tough for a non-VIP to make much of a profit renting Wyndham reservations, unless they are some very good weeks. I would definitely have a plan on what you're looking to rent out, and buy for the ARP if you're going to try it.

johnluyando · May 23, 2016

I appreciate the advice. I understand that renting without VIP may not be profitable venture and may even have some "educational expense" associated with it. I am trying this to see if I have the aptitude to make this work before making a serious investment into this business. I am going into this with my eyes open - at least I think I am.

Saintsfanfl · May 24, 2016

As mentioned the points are worth more to the ones bidding against you, either VIP or owner usage. This means you either have to get lucky or you have to overpay. Lucky is better so just be patient. eBay might not be the best place to buy since there are a group of people that have watch list and a listing will not go unnoticed.

Jason245 · May 24, 2016

johnluyando said:
Hi all!

A few weeks back, I decided that I would go after Wyndham contracts in order to try the rental game. I figured that I couldn't get that hurt buying a few resale contract to learn the business. Worst case scenario, I take a few more vacations and call it an educational expense.

My strategy is to bid on low MF contracts some with left over points remaining. My bid always is made in the last 3-5 seconds (most of you know how this is accomplished) and have been generous based on recent sales. Unfortunately, I have yet to win a contract. Is it the time of year that is creating a higher demand? I don't think I am being cheap but maybe that's the case.

I realize that I am ask my potential auction competition for advice but I would appreciate any guidance that you all could share.

Thanks!

I must have lost at least 30 or 40 auctions before I won what I wanted and got it at the price I wanted (well less than the price).

I firmly believe that there are Shill bidders out there (especially on some of the more prominently displayed TS listings).

Depending on the size of the point contract you are looking for, I know that there are a number of them that get listed in the bargain basement for free regularly.

ronparise · May 24, 2016

Its all about the money,

because Im able to use the VIP discount, Im able to pay more for my inventory than someone who isnt a VIP and Im able make money with contracts that have higher maintenance fees than the guy that isnt VIP

Also Im at the point where Im buying with profits, some would say its not real money that Im using

and Im not the only guy in that position

So bottom line If I want something or one of the other buyers like me want something.. and you want a bargain, you wont have a chance. we will out bid you every time

So the secret is. open up that wallet,

and then there is this...Recently Ive been willing to bid on contracts offered by unknown sellers. and Ive made direct offers bypassing the bidding all together. That has thinned out the competition.. In the last few months Ive won 2.6 million points for $6500 or $2.50 per 1000 all in.. there is the risk some of it wont settle, but I have only been burned once in 5 years

And John.. just like you wont chase premiums, dont chase the low mf contracts

am1 · May 24, 2016

Jason245 said:
I firmly believe that there are Shill bidders out there (especially on some of the more prominently displayed TS listings).

I would not call it shill bidding but bidders who would purchase it at that price if by chance they win or people just trying to up the price but no financial incentive other then to keep prices high. I have not bid on a timeshare in years but before I had no problem bidding on a timeshare shortly after I saw the listing but 99.9% sure I would not win. But I was fine with that.

Saintsfanfl · May 24, 2016

am1 said:
I would not call it shill bidding but bidders who would purchase it at that price if by chance they win or people just trying to up the price but no financial incentive other then to keep prices high. I have not bid on a timeshare in years but before I had no problem bidding on a timeshare shortly after I saw the listing but 99.9% sure I would not win. But I was fine with that.

There is most definitely shill bidding on ebay but maybe not in the auctions the OP is referring to. It happens often with higher value listings by certain "suspect" sellers. The ones that use the private bidding option have a higher chance of using shill bids.

One of the common indicators of shill bidding is coming in second several times in a row and then being offered the unit with the excuse the high bidder backed out or they happen to have another of the same unit. It happens.

am1 · May 24, 2016

Times have changed when I first started this strategy. I would transfer 3 years worth of points to a platinum owner and that would pay for the purchase price and so many months of of prepaid mfs. The points where transferred out before the timeshare was in my name. A little risky for the seller if the deal went south. What was left over was cash flow that I could invest in more timeshares and do it over again. As soon as a new use year started I would transfer another set of points to a Platinum owner.

Surprisingly there was good money to made in that other than if the timeshare value dropped (liked it did). But by that time I was already renting my own reservations with gold then platinum discounts paid for by transferring the points to other owners.

In your situation, the first year you are going to take a bath as you will be learning and also you will not get a chance to book real prime reservations.

There is another way to dip your feet in to the business without purchasing timeshares your self. Also you should not be looking for the cheapest mf resorts but looking for something else.

am1 · May 24, 2016

Saintsfanfl said:
There is most definitely shill bidding on ebay but maybe not in the auctions the OP is referring to. It happens often with higher value listings by certain "suspect" sellers. The ones that use the private bidding option have a higher chance of using shill bids.

One of the common indicators of shill bidding is coming in second several times in a row and then being offered the unit with the excuse the high bidder backed out or they happen to have another of the same unit. It happens.

Maybe in some cases there is shill bidding if you are getting offered a second chance to win. In that case I think ebay should delete all the bids by the bidder who backed out.

But a lot of times it just people putting bids in to create a price floor.

Tank · May 24, 2016

If you want it , up your bid and be willing to pay a little more for it.

Your initial investment will still be a far cry from what most people paid at the resorts.

Start enjoying your vacation

Saintsfanfl · May 24, 2016

Tank said:
If you want it , up your bid and be willing to pay a little more for it.

Your initial investment will still be a far cry from what most people paid at the resorts.

Start enjoying your vacation

Except for the fact that the OP's goal is to start learning the rental business and not to take a vacation. Buying the right stuff as cheap as possible is the way to go.

johnluyando · May 24, 2016

ronparise said:
Its all about the money,

because Im able to use the VIP discount, Im able to pay more for my inventory than someone who isnt a VIP and Im able make money with contracts that have higher maintenance fees than the guy that isnt VIP

Also Im at the point where Im buying with profits, some would say its not real money that Im using

and Im not the only guy in that position

So bottom line If I want something or one of the other buyers like me want something.. and you want a bargain, you wont have a chance. we will out bid you every time

So the secret is. open up that wallet,

and then there is this...Recently Ive been willing to bid on contracts offered by unknown sellers. and Ive made direct offers bypassing the bidding all together. That has thinned out the competition.. In the last few months Ive won 2.6 million points for $6500 or $2.50 per 1000 all in.. there is the risk some of it wont settle, but I have only been burned once in 5 years

And John.. just like you wont chase premiums, dont chase the low mf contracts

This makes sense. I've been very specific with what I am going after, only looking at "good stuff". Probably competing with folks of your stature.

I won't chase as patience has always served me better - but that was a very expensive lesson to learn.

johnluyando · May 24, 2016

am1 said:
Times have changed when I first started this strategy. I would transfer 3 years worth of points to a platinum owner and that would pay for the purchase price and so many months of of prepaid mfs. The points where transferred out before the timeshare was in my name. A little risky for the seller if the deal went south. What was left over was cash flow that I could invest in more timeshares and do it over again. As soon as a new use year started I would transfer another set of points to a Platinum owner.

Surprisingly there was good money to made in that other than if the timeshare value dropped (liked it did). But by that time I was already renting my own reservations with gold then platinum discounts paid for by transferring the points to other owners.

In your situation, the first year you are going to take a bath as you will be learning and also you will not get a chance to book real prime reservations.

There is another way to dip your feet in to the business without purchasing timeshares your self. Also you should not be looking for the cheapest mf resorts but looking for something else.

Great points - message received. I have discovered a few ways to gain access to VIP discounts. There is expense and risk associated which is why I am willing to take a bath in the beginning to learn the business - as you have pointed out.

So the "hustle" (as Ron has referred to it) has financed your empire. This is interesting!

am1 · May 24, 2016

johnluyando said:
Great points - message received. I have discovered a few ways to gain access to VIP discounts. There is expense and risk associated which is why I am willing to take a bath in the beginning to learn the business - as you have pointed out.

So the "hustle" (as Ron has referred to it) has financed your empire. This is interesting!

Interesting but not affective now. The game has changed too much.

Patience is good but there is a long lag time between purchasing, owning, booking reservations and renting them.

Ebay Buying Strategy

johnluyando

philemer

TUG Review Crew: Veteran

scootr5

TUG Review Crew: Veteran

johnluyando

Saintsfanfl

Jason245

TUG Review Crew: Expert

ronparise

am1

Saintsfanfl

am1

am1

Tank

Saintsfanfl

johnluyando

johnluyando

am1