What's Going on with Old Key West Buybacks? | The DVC Show | 09/27/21

coming up what the heck is going on with old key west [Music] hello everyone and welcome to this week's episode of the dbc show coming to you from the bob varley studio in orlando florida i'm your host pete werner joined at the table this week my good friends marissa valentine hello mr derek deborah hey now and of course our producer mr craig williams and joining us via skype the lovely kriegers amy and the guy she married um before we get started just a reminder to everyone uh this show is brought to you by i'm sorry guys this is my like seventh or eighth show today so no idea where this is going uh this show along with all of our dvc content is brought to you by the world of dvc dvc resalemarket.com if you're in the market for a dvc resale contract dbc rental store.com if you'd like to rent out some dvc points rent out your dvc points try dvc before you buy it's a great place to go and monerafinancial.com which can help you very easily finance your next dvc resale purchase so some stuff going on with old key west i haven't heard some stuff going on why don't paul i'm going to let you uh i'll let you explain this sure um so we're almost uh coming up from about i think two to three weeks ago uh back near the end of august we had old key west owners begin to receive an email from disney vacation club basically asking them nicely if they could buy back their contracts um this seemed to be a targeted email it did not go to everyone the language of the email sort of suggested that they were aiming for people that maybe haven't used their points in a period of time or older old key west owners so people that have owned it all the way back from the beginning i know for a fact that our very good friend uh webmasterdoc over on disboards received this this this email um but basically it was just very nicely worded saying hey like reach out to us if you're interested in potentially selling your disney vacation club contract and we'll talk to you about it um we did receive some reports from some members that did make that phone call and reach out to dvc and we did find out that the going rate that they were asking uh that they were telling members that they were going to give them is somewhere around eighty dollars per point now uh we'll just let that sink in for a second yeah and while you're letting that sink in i want you to think about this image big round brass that's what it takes to send out that email at that price point it took me a while i like those it takes a moment that it hits you like oh okay because i'm sitting here looking i'm sitting here looking at dvc resale markets website right now and i'm seeing contracts 100 115 117 119 small point contracts 155 um 117 and these rat bastards are turning around saying we'll give you 80 for it but go ahead we can take this one level more uh the big round brass um also shortly thereafter a week later raised the direct purchase price for old key west if you were to buy directly from disney vacation club from 170 dollars per point to 180 dollars per point and this is one of the only resorts that i believe we've seen two price increases for in this calendar year um we saw one back in july from 165 to 170 and now we've actually gone from 170 to 180. so we've raised the price of old key west or buying back contracts at 80 per point something's happening well and they're also buying back a lot on right of first refusal so i think dvc resell market put out their uh statistics for august and okey west was like almost 30 percent of their okay west contracts are being bought back from disney and that's the highest resort buybacks uh bay lake being around 20 being the next one now look i get they need to raise rep generate revenue right because you know they've had a year um but what what's the possibility that terry schultz's move was uh actually just a cover for the fact that she's panhandling on orange blossom trail to raise money for dbc what is this now you guys have worked for these people what what do you think what is this so internally here's what's interesting the people that they have sending out these emails and doing these calls to members are not their sales team so they have their quality assurance team who's basically does like their compliance so it's not any of their sales staff that are involved in this in any way which is strange two which doesn't seem the most upfront way of phrasing it what bothered me the most with the email was kind of the ambiguous phrasing of we are going to pay you more than what we would normally buy back in right of first refusal so if you go to our blog and you go to our writer first refusal and you look at we're seeing on average with old key west in the 120s per point on right of first refusal so you're going to pay more well maybe they got it somewhere and write a first refusal somehow at a lower price but to blanket that statement doesn't come off super upfront i just think it's so strange too in that foam just like you said a lot of these people i don't know how targeted these are because i've had people that got that email that say derek why would they send this to me we use our points every single year so what they almost created is a different monster that they never maybe had any intention of creating which is that seller that says oh well i never really thought about selling my contract let me go on my laptop and let me type in dvc reset dvc resell market why what's that so in a way you're to having people do research into what could i possibly call and for my contract part of this email didn't it encourage they gave them a seven day period to research resale before they came back to them like that's a lawyer yeah very it's all like the whole email it's all done by compliance which working internally for disney it's a very interesting dynamic because there's the sales side and there's the compliant side and somehow we work together but it's it's so strange we work together but compliance runs the show that's it and so the fact that they have the compliance team being the ones to reach out on these buybacks it's just all very interesting which means that there is some i mean just from my perspective would tell me that there is some um dicey legal waters that they have to navigate oh for sure they're being very cautious about it and they're being very well also you know we're i love us i love our community i love you guys it's death but we'll threaten a lawsuit as we're ordering our pancakes um so they know that this is a very hyper-engaged market and if anything is the slightest bit off we're all over it like white on rice so that would make sense to me because they know something as unusual as this do you think this has anything to do with you know we've always speculated about you know are they ever going to extend the choice offer an extension of the 2042 expiration do you think this is obviously when you buy direct from disney it's extended it's extended right so they're buying a 2042 contract and extending it to our 2056. 2057 2057. um i i i just i can't for the life of me figure out a why they're doing this but also b what's next this is not the end of this story i'm telling you right now this is not the end of the story something's going on yeah and it's just strange to me because marissa and i were talking being a disney vacation club guide way back when when they announced that original old key west extension it didn't exactly go i mean paul knows it's pretty common knowledge i mean it did not go over well at all but unlike this offer now where their compliance team and their admin team are making phone calls vacation club guides back then literally we had phone nights to where they gave you a list of thousands of old key west owners and you personally called them up over the phone and said did you want to extend your contract if not we need you to say you're not going to extend your contract and so vacation club guides were you know it was kind of comical how how little we were paid for the old key west extension meaning that's why it didn't go over well because the guide said well listen how do i want to spend my time do would i rather sell to a new family a brand new contract or chase down this old key west owner to see if they want to extend it for an additional 15 years so i don't think they're looking that far ahead for anything else like the 2042. so they're doing so then we found out soon after they'd send the same email out to saratoga owners and animal kingdom owners i think what they're trying to do is get enough inventory skipping maybe the rather first refusal process and going can we just scoop up as much cheap as we can for that drop product which makes me think that the price for grand both at grand floridian and then whenever they have the california towers i think they're coming in hot and high personally and i think they want a very healthy drop product that has a healthy amount of years 2057 and 2054 to go well if you don't have 40 000 for your first time purchase right here's an option at 20 000. exactly oh paul i hear you grunting [Laughter] i just make random noises all day long um i i agree with what marissa said there at the end you know i think there are two factors at play the first is that um with from from bill dirks um or whatever his last name is we've pronounced it like 75 different ways now but with him at the helm now with financial mindset it sort of indicates to me that bbc is going to try to make money however they can it's not just specific i can't talk never mind specifically it's not specifically looking at riviera and looking at ilani looking at their newer resorts but it's looking and saying hey if we can make money here that's good for our bottom line so let's do it so they're seeing um as marissa was saying it's a good drop product for them to offer if someone sort of balks at uh some of the uh the higher priced disney vacation club properties um and i think the second uh relates back to sort of what what derek and you were saying earlier with the legal issues surrounding old key west there's been debate for years as to whether or not they did that extension properly and there's been debate on disboards and other forums as to whether or not even if you did sign over and say that you weren't extending whether or not you technically do have an extended deed um there's been a lot of legal questions uh related to that but it doesn't negate the fact that dvc when we get to 2050 or when we get to 2042 they're going to have a large problem on their hands it's basically the fact that they've got an extended resort for what percentage of ownership and so i think that there is a mindset in there to also say let's buy back as much of this as we can and extend as much of this as we can because that minimizes the impact once we get to 2042 and in the meantime we can make a killing by doing so buy it back at 80 and sell it at 180 you're making yeah but have these people met their audience you know i could i could unders no i couldn't um of all the disney audiences that there are and i'm not saying that there are segments of the disney fan community that are stupid but there are no segments of the disney fan community not just more engaged because we've paid money real money into this so we literally have a sense of ownership but also more knowledgeable have educated themselves not just on time shows but on on on legal issues um many of the people in this there are many people in the community that are lawyers and they offer something like this do they really think or is you know it almost seems to me and this is just because you know i'm jaded um it seems to me like oh you know what um because of the pandemic and the economy maybe people are really struggling and need quick cash so let's offer them 50 cents for a 10 000 thing that they have none of this no part of this looks good no part of this sends a message that hey you know what here's something really cool and new you can do if you're not using your points or here's it doesn't send a message if we value you and i think i said the the the the the the email while we hate to see our members go get the hell out is basically what the email was um and i think they think that they can create higher value a higher price point on old key west so let's get rid of the people that are holding on to all these points so that we can get them and sell them and hopefully they're in some kind of financial distress and they'll be you know desperate enough to take this right when they could easily offer they they could say hey listen here's my 500 point contract i need the money i'll offer it for 100 a point you get 20 more a point and you had like it sold within an hour i just and it's probably just a numbers game right so so they figure and say listen we know that there's a lot of smart members out there we get it those people are probably not going to take advantage of it but say you throw out 50 and if they can get five six i don't know what the percentage is but if they can get some of those people and just like paul said that turn around buy it for 80 sell it for 180. so it's i think at this point it's just a just a numbers game and they're just throwing it out there and i i get the company has you know look yeah i've said this many times they've lost billions with a b in the last year not just ebc disney as a whole and i am sure every business unit has enormous pressure on it right now to come up with creative ways to generate revenue when cost overruns happened at shanghai disneyland we got cabanas in tomorrowland as because the company was screaming raise money any way you can the cabela's cabanas lasted about 11 minutes i forgot about those okay right so is this dvc's cabana moment no is this dvc's cabana moment i don't know um nothing about this looks even remotely appealing to me as an owner nothing no i mean maybe there's something i'm missing but i don't think if i'm missing it i could get that you guys are not going to miss it if there's something else going on you guys have been on both sides of this this this uh deal um have you ever like you've both worked for dvc directly have you ever seen anything like this no i think i mean it was always for us was always you know you don't you want to bring up objections before they come up right so you know when you're a disney vacation club guide you learn through all of your training you know listen you got to proactively talk about the dues right you want to proactively you know bring up objections before they could bring them up so so that guest doesn't say i need to go home i need to think about it with this it's just such a strange thing because you're like i said i think the biggest part of it is you're begging people to do research like you're literally begging people to go online to do research and that's their what is that sale market right it's their biggest enemy in terms of buying dbc well and i think even if they put sales team on it it could be a different outcome because again i feel like from our time there right the sales side was very proactive and let me tell you everything negative so i can tell you about the positive right and that's kind of how we pride ourselves on the resale market of like i'm going to tell you all the bad you want to know all the bad all the restrictions i'll tell you everything and if you still want resale i'm going to help you with that and i feel like that's such a breath of fresh air and i feel like as compliance creeps over it takes that away and so i feel like this is coming out in this very like undercover slight way but also strategic business right so i don't know maybe they just didn't have cash all during 2020 but there were some deals to be had on retired first refusal that they just ignored and you think about if you had some cash on hand to buy up so many of those points that were going through out of first refusal that they just passed on and now they're trying they're scrambling and buying it 120 per point on radically you know but you know i wonder because we we had that last year where nothing was getting bought back nothing months are they realizing that was a mistake and they're trying to make up for lost time yeah they're calling people up listen that contract you have we need to buy a bag you're supposed to buy a bag i mean i wonder i i wonder i mean it really is i mean obviously there's a reason behind this um you know they're not transparent about the good stuff they're certainly not going to be transparent about this um so and i think you know you know more will be revealed more will be revealed good ball i go back to uh from a sales perspective i go back to when this one bought her new car uh ten years one um no say that again when my lovely wife bought her new car this one but about about a thousand women just threw something at the screen when my lovely when my lovely wife got swindled at the car dealership um the the the key thing that happened was that they asked her you know you know what color car would you like and they didn't have that color but but they went out to try to get it and i wonder if disney vacation club is trying to do something very similar i wonder if they're seeing uh an extreme interest in other properties that they've not historically really kept a good inventory of um because we are seeing it with other resorts animal kingdom watch you know that's that's another resort that they're trying this tactic with so i wonder if they're just just wanting to have in their back pocket a really decent inventory in this new age that we live in of being able to say okay we don't like this shiny product over here what what product do you want okay we have that too right here um and and not having because historically um and derrick marissa correct correct me if i'm wrong but historically it wasn't there was basically wait lists for those properties it wasn't always that the inventory was on hand in certain circumstances yes it was but it wasn't always that we had inventory for every property on hand to offer someone if that's the exact resort that they want and if we are looking at it as a numbers game if it's strictly sell to sell if they have some on hand if they can sell it to you in that moment maybe that's that's a different perspective that they're that are they're approaching it from yeah and and that that's a great point paul because again when it does come down to wait list right and what happens with a wait list is someone might say i want animal kingdom i want saratoga i want the beach club then you put them on a waitlist right but what happens then is that heat of that moment is gone right so you might call them up in a week you might call them up in a month it might be six months later and you're calling up saying hey it's derek great news remember those beach club points you wanted six months ago well we have them and they're like oh no yeah but yeah so you take out of that heat of the moment and you lost a sale so just like paul said if that vacation club guide has those points right there let me check run to the back i got the points for you right now so you know um the moral of the story folks get your popcorn get your popcorn out because this is not over i i this is not over don't know exactly what angle they're they're working here but they work at an angle this is not normal this is not and it's almost to those of us that are you know i don't know like even the slightest bit enlightened in dvc it's offensive it's offensive i mean you you reach out to somebody like rob lindsey who's been an owner from almost the very beginning who uses his points can you tell him eighty dollars this is a guy who could write a book on dvc and i don't know i don't know it just and i you got to wonder where this came from did this come from you know the steel trap of a mine that is terry schultz or is it you know or was uh billy dee uh uh working on this in the background because i don't know how to pronounce his last name that's what we landed on billy is he was he working on this on the background and this is this is his his coming out party i i don't know but this is his pivot that's better that's better than most nicknames you've given out this past year so i i think he'll take well it's my first shot give me some time it's my first shot um so yeah it's but it's it's interesting it's interesting and we'll see we'll see what they what they end up doing but if you're one of those people with an all key west contract and you think about uh selling to disney for 80 a point i want you to stand up and i want you to punch yourself in the face because it's a bad idea it's a bad idea or you can just call us okay just call dvc you could just violent or well let's see go with the horrible violence and then give them the alternative which is give a call to our friends at dvc resell market they'll get you more than 80 a point i promise all right folks that is going to do it for this week's episode of our show we hope you enjoyed it we'll see you again next week with another episode of the dvc show have a great week and remember don't sell your damn old key west contract for 80 points

Channel: DVC Fan

Views: 30,894

Keywords: DVC, Disney vacation club, Old key west, DVC member, Disney vloggers, old key west buyback, DVC show, the DIS, DVC news, Disney news, what happened with old key west

Id: 8xR4f8Q0iR0

Length: 25min 26sec (1526 seconds)

Published: Mon Sep 27 2021