(Of Usury, from Brant's Stultifera Navis (the Ship of Fools); woodcut attributed to Albrecht Dürer) Source: Wikipedia
(Note: I think it's important to know the terminology and words used when learning any new business including mobile home investing. I came up with 'Terminology Tuesday' as a way to go over the terminology used in the mobile home business. It's important to know the terminology when talking to people in the business so you're all on the same page).
As defined in Wikipedia:
"Usury comes from the Medieval Latin usuria, 'interest' or from the Latin usura 'interest') originally meant the charging of interest on loans. This included charging a fee for the use of money, such as at a bureau de change. After interest became accepted, usury came to mean the interest above the rate allowed by law."
Before even starting to do "Lonnie Deals," it's a good idea to check on the usury laws for your area. Usually, there is a maximum allowed interest rate that is permitted - this varies by area.
In Lonnie Scrugg's book, "Deals on Wheels," he uses 12.75% interest when selling with owner financing deals as an example. Though, what one decides to use is a matter of personal choice.
Happy investing!
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