This rule must have great value for mobilehome park investors. A search of the archives of CREonline shows it has been discussed plenty over the years, but I never could fine it explained because the post have been removed. Could someone please tell me what it is and how to use it?
Bill,
Try searching our forum by using the “search” link at the top of the page. If you type in “60/30 rule”, you will see over 40 posts on this subject.
Steve
Exceptionally coolbeans on the Rule 60/30, thankyou Steve Case. My first rule each day is Rule #62. I appreciate all rule-of-thumb information. The Rule of 72 is truly great for this business. I sold a used building today, from the yard of the defaultee, to the buyer. 88 dollars a month for another 36 months, and the buyer paid to relocate it. The defaulted RTO had had 27 payments on the record and they went in the contract with two payments down of 88 dollars a month for 36 months with my company. My consulting fee on the transaction and payment from the bank for creating the note and guarantee’n it, was a little over $581.00 when I had the special order unit 21x10 with doublefrontdoors. My investment in this contract delivery was never anything, but a promise to pay a note at the bank for 36 months or less. It’s paid itself almost out, and now it’s re’ up’d for a good finish. A portable building rto contract can double in five years without a problem.