In addition to the resorts, the low maintenance fees and the flexibility (any day check in, long stays allowed, grouped reservations , wait list, cash alternatives, owner to owner transfers etc etc) You can, with a little luck buy this stuff for next to nothing
heres what Im involved in now
Earlier this year I advised a friend/client to bid on a 40000 credit, fully loaded contract The anniversary date is January. Yesterday the transfer papers finally arrived for signature. the first monthly mf payment of $215 is due Oct 1
so whats this mean for my friend:
1) He paid $12000 for the contract
2) mf between Oct 1 2017 and Dec 31 2018 will be $2800
So total cost between through Dec 2018 will be $14,280
on Jan 1 2018 he will have 120,000 credits to use and another 40,000 he can borrow
here are his choices as I see them
1) rent out the 120,000 credits at 7 cents ($8400) reducing his net cost through the end of 2018 to under $6000 and make 4 weeks of vacation in 2018... net cost $1500 /week and 4 weeks of vacation every year thereafter for the cost of mf only (about $650 per week)
2) Use the 160,000 credits to make 16 week long 2018 reservations for rent. based on my experience (and with my help) he can rent these 16 reservations for $1500 each ($24000) So he gets all of his money back and a positive cash flow of about $12000 in the first year.
3) some combination of the above. for example, He can get a return of the $14280 by renting 10 weeks and enjoy 6 weeks for himself for free.
4) make 12 2018 reservations with the 120000 credits to use for a return of all the money he will have spent through Dec 2018 plus a little, and in Jan 2019 sell the contract with 40,000 credits to use and 40,000 credits to borrow for 30 cents per credit... profit in 15 months of about $15000
5) heres what I would do.
# 2 above for the $12000 positive cash flow in 2018 and
rent in another 80,000 credits before Jan 2018 and another 80,000 just after Jan 2018 at 7 cents each; make and rent another 16 2018 reservations for another $12000 profit...
total = $24000 in the first year and in future years make reservations with 40,000 credits owned and 80000 rented credits for a $10,000 profit per year (12 reservations at $800 profit per year.)
In any case there are very few things you can buy that will pay for themselves in a year. Worldmark is one of them... I like that
heres what Im involved in now
Earlier this year I advised a friend/client to bid on a 40000 credit, fully loaded contract The anniversary date is January. Yesterday the transfer papers finally arrived for signature. the first monthly mf payment of $215 is due Oct 1
so whats this mean for my friend:
1) He paid $12000 for the contract
2) mf between Oct 1 2017 and Dec 31 2018 will be $2800
So total cost between through Dec 2018 will be $14,280
on Jan 1 2018 he will have 120,000 credits to use and another 40,000 he can borrow
here are his choices as I see them
1) rent out the 120,000 credits at 7 cents ($8400) reducing his net cost through the end of 2018 to under $6000 and make 4 weeks of vacation in 2018... net cost $1500 /week and 4 weeks of vacation every year thereafter for the cost of mf only (about $650 per week)
2) Use the 160,000 credits to make 16 week long 2018 reservations for rent. based on my experience (and with my help) he can rent these 16 reservations for $1500 each ($24000) So he gets all of his money back and a positive cash flow of about $12000 in the first year.
3) some combination of the above. for example, He can get a return of the $14280 by renting 10 weeks and enjoy 6 weeks for himself for free.
4) make 12 2018 reservations with the 120000 credits to use for a return of all the money he will have spent through Dec 2018 plus a little, and in Jan 2019 sell the contract with 40,000 credits to use and 40,000 credits to borrow for 30 cents per credit... profit in 15 months of about $15000
5) heres what I would do.
# 2 above for the $12000 positive cash flow in 2018 and
rent in another 80,000 credits before Jan 2018 and another 80,000 just after Jan 2018 at 7 cents each; make and rent another 16 2018 reservations for another $12000 profit...
total = $24000 in the first year and in future years make reservations with 40,000 credits owned and 80000 rented credits for a $10,000 profit per year (12 reservations at $800 profit per year.)
In any case there are very few things you can buy that will pay for themselves in a year. Worldmark is one of them... I like that