Why own when you can rent?

[Bill4728 Super Moderator Find all posts View Profile Close Bill4728]

There have been many threads on this subject but I want to tell about my recent experience.

We had an exchange into the new HGVC on the Big Island and want to spend 4-5 days on Kauai before going to the Big Island. We looked for an exchange but DW is very picky about where she stays. So we ended up renting from Marriott a 2 bd villa at their Kauai TS. For 4 days, it was $2000. Which was $800 cheaper the 2 hotel rooms and the same to $500 cheaper than most rentals on Redweek or TUG. Also by renting we got the exact dates we needed.

Granted this worked because we only needed 4 days but still it was so nice to not hassle with trying to match up 2 weeks of exchange.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Because if you own, you can both use your own unit and rent whereas if you only rent, you can only rent. By owning, you can choose the method that works best and cheapest. In addition, if you do it right, you'll never have to pay for travel again. Of course, if you do it wrong, you'll get taken to the cleaners.

[JWC Super Moderator Find all posts View Profile Close JWC]

I agree with Kat. We intend to sell both our timeshares when we get back home. There are so many other alternatives that are for more suitable for our preferences.

[bboy1234 Member Find all posts View Profile Close bboy1234]

what about the bennifits of ii or rci you have to be a owner to join.

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

Because if you own, you can both use your own unit and rent whereas if you only rent, you can only rent. By owning, you can choose the method that works best and cheapest. In addition, if you do it right, you'll never have to pay for travel again. Of course, if you do it wrong, you'll get taken to the cleaners.

And, because if you own, you get to trade for two, 2 bedroom Four Seasons, for the cost of your (low) MF's fees........

This is what they are going for on Redweek:

Sep 30, 2006 - Oct 06, 2006 7 $2,690 ($384/night) 8 view posting
Oct 27, 2006 - Nov 03, 2006 7 $2,400 ($343/night) 6 view posting

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

And, because if you own, you get to trade for two, 2 bedroom Four Seasons, for the cost of your (low) MF's fees........

This is what they are going for on Redweek:

Sep 30, 2006 - Oct 06, 2006 7 $2,690 ($384/night) 8 view posting
Oct 27, 2006 - Nov 03, 2006 7 $2,400 ($343/night) 6 view posting

Now I'm feeling guilty. I can't wait to see these resorts. Everyone raves about them.

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

Now I'm feeling guilty. I can't wait to see these resorts. Everyone raves about them.

Guilty.....why would you be feeling guilty???? I would be on cloud nine, experiencing only "happy" feelings......Guilt is the last thing I would feel.......

To me, that is one of the best perks in owning a timeshare......I love when people get those kind of deals. And, I love to get them myself. I have gotten one or two very good deals, and look forward to more in the future.......

[Hostelling Senior Member Find all posts View Profile Close Hostelling]

I'll Bite

In addition, if you do it right, you'll never have to pay for travel again. Of course, if you do it wrong, you'll get taken to the cleaners.

How does one avoid the travel costs?


Daniel

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

How does one avoid the travel costs?


Daniel

Timesharing is the most inefficient market on earth. And, when a market is inefficient, there are tons of opportunities to make money. An efficient market is defined as one where the standard deviation of actual price paid or actual rent paid is very very small. In other words, the market price for a commodity is well known and almost everyone pays the same price. The price of gold on the commodities exchange is a good example. The price fluxuates on a daily basis. But, at any given time, almost every who buys pays about the same price.

Timesharing is just the opposite of efficient. So, on any given day, someone is paying $20000 for a product that someone else is paying $2000. Same thing is true with rentals. The example above that Angela gave are for two exchanges that she helped me get. Four Seasons in Scottsdale and Carlsbad. My cost for acquiring those weeks were $295 and $535 including the exchange fee. The owners paid over $1800 and they are renting for over $2600 per week.

So, the pre-conditions are ripe for making money. The hardest thing to figure out is what the rules actually are so you don't get into trouble. For instance, you can't rent an exchange from II or RCI. So, I don't recommend that. And, some features don't transfer, like points in Club Sunterra. These barriers were intentionally put in place to prevent the average owner from figuring out how to arbitrage the system to profit from it.

So, once you have a critical mass of knowledge, it is actually quite easy to get great exchanges or great reservations for cheap like the example of the Four Seasons. That's the first level of capitalizing on timesharing. Getting cheap vacations.

Then, when you want to go for Free vacations. Or, you want to quit your job and make a living at it, it really isn't very difficult given the huge variance in purchase price that exists in the market today.

So, it's possible to find rental opportunities that deliver 25-50% return on invested capital with only moderate risk. Opportunities at the 25% level abound. Opportunities at the 50% level are more difficult, but possible. There are members of this board (not me) that get 50% return on invested capital on a very large timeshare portfolio. And, it's all above board and within the rules. You just need to know a ton about timesharing in order to achieve that level.

An easier way than rentals is via buying and selling. And, the risk is a lot lower. If someone is paying $20,000 for a product that others are paying $2000, then there exists price points and customers that believe $10000 is a fantastic deal. And, for those who can pick up those properties for $2000, there is tremendous margin opportunity if you can find those buyers.

It is actually pretty easy to determine the internet market price for a timeshare and then hunt for deals $1000 lower than that price. And, when you take it over, you flip it in a week or less because you knew the internet market price. There are tons of people on this board who do exactly that. Most don't talk about it because they don't want others to compete with them.

So, to travel for free, all you need to do is exchange cheap for your personal use and buy, sell and rent to cover all of your other travel expenses.

If you ever see an infomercial on tv in the middle of the night claiming to have a program to teach people to travel the world for free in timesharing, you know who created it.

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

If you ever see an infomercial on tv in the middle of the night claiming to have a program to teach people to travel the world for free in timesharing, you know who created it.

.........................

Surprisingly, I haven't seen it, but I will now be on the lookout for it.....Is it being sold on this or any other site?

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

.........................

Surprisingly, I haven't seen it, but I will now be on the lookout for it.....Is it being sold on this or any other site?

It isn't created yet. It's only in my mind's eye.

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

OK....well, let us know when it comes to fruition...... I would love to own one.

I have to say, there is much to learn in the timeshare industry. I have learned much since I purchased my first timeshare. I realize however, that I still have so much more to learn before I would consider myself knowledgeable in the industry.

So far, it has been fun learning....and the vacations haven't been too bad either......

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

OK....well, let us know when it comes to fruition...... I would love to own one.

I have to say, there is much to learn in the timeshare industry. I have learned much since I purchased my first timeshare. I realize however, that I still have so much more to learn before I would consider myself knowledgeable in the industry.

So far, it has been fun learning....and the vacations haven't been too bad either......

Angela,

You qualify for a free copy of the program. In fact, after I give it to you, I still think I owe you. You save me over $4000 in the last month. It could have been more if I got that 3 bedroom OKW, the 2 bedroom Ko'olina and the 2 bedroom Grande Ocean. Those are breath taking exchange opportunities.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

Angela,

You qualify for a free copy of the program. In fact, after I give it to you, I still think I owe you. You save me over $4000 in the last month. It could have been more if I got that 3 bedroom OKW, the 2 bedroom Ko'olina and the 2 bedroom Grande Ocean. Those are breath taking exchange opportunities.

I think we all owe Angela some TS4Ms points wine for all her efforts and EXTREMELY valuable ex-ops on the II board.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

Hear Hear to Angela!