Just converted - need an answer fast

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

After 10 years as an owner at Sunterra Scottsdale Village Mirage and after resisting numerous appeals to join the Club, we just turned our week into points (mainly because of how obnoxious RCI has become).

But I have a question I need answered before the 3 day RTR. We converted our 2 bedroom into points and, of course, had to buy some extra points from the developer. We had the option of keeping the points for our 2BD unit as a deed at the Villa Mirage and just putting the new points in the Trust or canceling the resort deed and putting the whole shabang in to the Trust. We actually did put in all in the trust but now I'm second guessing. Should we keep part of the points deeded at the resort (I'm thinking if worse comes to worse and we need to sell, it's easier to sell a deeded property)? Part of the reasoning to convert all was as a deeded owner at an individual resort, we could be hit with a special assessment that would be much less spread out among all the Trust owners.

Advice, wise ones?

[Eileen A. Member Find all posts View Profile Close Eileen A.]

Hi,

I have resisted converting my deed into the Trust. The salesmen all push converting. Was at a presentation this weekend in Sedona and got the same story. I like the idea of a deed better than the Trust. I've also found (I have a UDI at Villa Mirage worth 30,000 options) that the MF would have cost an add'l $500 a year for me if I converted into the Trust. I believe the Trust MF is approx. $.082 per option. If you look at Villa Mirage it is most likely less.

I wonder if we'll hear from Spence. He always has good advice. Also check old posts. I believe this topic has been discussed before.

Curious on how many options you needed to buy and at what location. You may want to check a few sales offices. Best deals seem to have come out of the Las Vegas sales office. Feel free to PM me if you want to discuss further.

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

We were at the Villa Mirage office. We were offered 2500 points for $6K or 6000 for $14K which brought us up to silver. They also threw in one year's maintenance credit, 6,000 one time points, 2 AA airfares, and all closing costs. But here was the kicker for us. I had already banked my 2008 and 2009 weeks, splitting them (we have a lockout), therefore banking 4 weeks with RCI. They are starting the full points as of Jan., 2008. So basically, we are getting the points for 2008 and 2009 PLUS the 4 weeks banked. Double vacation.

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

I prefer a combination

Personally, I think the best arrangement is a combination of both deeds and CSV-1 points. I kept the deeds and assigned them to Club at the places we travel to (home resort advantage - 12 month reservation window) - this is app 70% of our total package. Then we purchased a few CSV-1 points packages (13 month res window for those resorts), combined everything together and put it all in Club. The points part has higher maint fees, but certain reservation benefits, while the assigned deeds part has lower maint fees, and different advantages.

In short, there are advantages and costs to either strategy. For us, a combination was best and most cost effective. However, we never converted a deed. We kept them all and simply assigned them. What is best is probably unique for each person and their individual circumstance!

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

Hi, I have resisted converting my deed into the Trust. The salesmen all push converting. Was at a presentation this weekend in Sedona and got the same story. I like the idea of a deed better than the Trust. I've also found (I have a UDI at Villa Mirage worth 30,000 options) that the MF would have cost an add'l $500 a year for me if I converted into the Trust. I believe the Trust MF is approx. $.082 per option. If you look at Villa Mirage it is most likely less.

I wonder if we'll hear from Spence. He always has good advice. Also check old posts. I believe this topic has been discussed before.

Curious on how many options you needed to buy and at what location. You may want to check a few sales offices. Best deals seem to have come out of the Las Vegas sales office. Feel free to PM me if you want to discuss further.

The key is what are your annual fees. A one year assessment is immaterial, if overall fees for your deed is less than the Trust then keep your deed. Sales especially pushes for conversion to Trust if you MFs go higher and don't often even offer the possibility if you have a week with MFs higher than the Trust. makes sense.

Personally, I think the best arrangement is a combination of both deeds and CSV-1 points. I kept the deeds and assigned them to Club at the places we travel to (home resort advantage - 12 month reservation window) - this is app 70% of our total package. Then we purchased a few CSV-1 points packages (13 month res window for those resorts), combined everything together and put it all in Club. The points part has higher maint fees, but certain reservation benefits, while the assigned deeds part has lower maint fees, and different advantages.

In short, there are advantages and costs to either strategy. For us, a combination was best and most cost effective. However, we never converted a deed. We kept them all and simply assigned them. What is best is probably unique for each person and their individual circumstance!

In my opinion there is no reservation benefits as insinuated. The inventories are separate. Trust members can reserve Trust inventory 13months out but they can't touch converted deeded weeks inventory until 10months out. The myth that Trust members could take all inventory in the Club system at 13months is not true.

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

Thanks for all your help. I need to dig through the paperwork and find out just what the MF would be on the new points we bought. I appreciate all the very quick responses.

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

Thanks for all your help. I need to dig through the paperwork and find out just what the MF would be on the new points we bought. I appreciate all the very quick responses.

8.03cents/pt currently plus your Club account will probably have a base fee of ~$150 for Trust (not the Club $155 that you pay anyway). If Club account is based on your deed you get away from Trust base fee.

[Eileen A. Member Find all posts View Profile Close Eileen A.]

Let us know what you decided to do. Also how many points will Diamond put in Club for your 2 bedroom Villa Mirage.

They did seem to throw in some extras. I wonder if they would try to hold anything back if you told them you do not want to convert your deed. We had some trouble at the Scottsdale Sales Office with the saleswomen (whom we had bought from before) promising one thing and the Manager pulling it back. We ended up walking and did our conversion in Las Vegas. They did not require as large a purchase to convert.

I think you will enjoy being in the Club.

Eileen

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

Not What I Meant

In my opinion there is no reservation benefits as insinuated. The inventories are separate. Trust members can reserve Trust inventory 13months out but they can't touch converted deeded weeks inventory until 10months out. The myth that Trust members could take all inventory in the Club system at 13months is not true.[/QUOTE]

Thanks for clarifying. I didn't mean to imply that, but its good to know all Club inventory can't be reserved by CSV-1 members 13 months out. What I did mean is the advantage of being able to secure some hard to get reservations 13 months ahead instead of 10 - like the two FEB Presidents Week 2009 reservations I now have for St Martin and Lake Tahoe.