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Tuesday, August 21, 2007

Official House Rules

The following are the official house rules for the Twin Cities Rich Dads and Moms Cashflow Club and periodically are updated:

Cashflow 101 & Cashflow 202



  • bankruptcy from the optional rules
  • bank loans from the optional rules
  • paying off debt from the optional rules
  • cash kept as a running total on paper instead of using game bills
  • selling your deal after you've already bought it to another player
  • draw two occupation cards and choose one
  • partnering on a deal
  • full-time self-employed in the Rat Race
  • Fast Track players as private lenders to Rat Race players


Let me detail reasons for our rules.


  • Bankruptcy: if you are paying out rather than taking in cash monthly, is a bank going to loan you money? Nope, not when you need it.
  • Bank loan repayment: Borrow and repay in $1000 increments. Ex: you borrow $20,0000 but your can repay $1500 or $50 at a time. You must repay in increments of $1000 such as $5000
  • Pay off debt: At any time, regardless of who's turn it is, you can pay off debt. It's not like you have to wait until Friday once a month to pay debt in the real world. You must pay the balance of retail or credit card debt if you are wanting to make a payment
  • Cash: Keep the total on a sheet of paper. This may seem less real but is it? Do you keep cash buried in the backyard and then dig it up to pay your bills? Nope, you use a debit card, right?
  • Subject To Sales: Basically a subject to sale where you pay an agreed upon amount for a property or business and take over the payments, like in the real world. You might get less or more than you paid out originally and you'll get more than the bank will give you on a foreclosure
  • Two occupation cards, pick one: Chances are, you had a choice in your chosen occupation in the real world. Why should you arbitrarily get a random one in the game and have no choice in the matter?
  • Partnering on a deal: If you can't or don't want to do a deal by yourself, use cash from another player and share! For example, if the deal costs $100,000 to get into, and both players put $50,000 into the deal, the one who drew the card would control the deal but each player could record their percentage of the deal on their financial statement. So if the two parties agreed to split the deal 50-50, it essentially is a LP (right, you don't want more risk than your have to take, yes?). So in this example, if the deal is split evenly and it cash flows $3500 per month, each would record a RE LP costing $50,000, down payment of $50,000, no mortgage and cash flow of $1,750 per month.
  • Full-time self-employed: you can choose to go to work for yourself if you like. Instead of waiting two turns to get a new job, you pay your expenses and move normally on your next turn. Your income is limited now to your passive income. Pay close attention as you play or you will be bankrupt! If you land on down-sized again, you roll one die. Role a 3 or less: the space acts as a another pay check as you take a vacation for the month and lose one turn. Essential, as a self-employed person, you control your destiny and work life. If you want to take a month off, you can even if it's not always the most wise thing to do. Role a 4 or higher: there is an economic downturn and your passive income cuts in half for 3 pay checks but you don't lose a turn. If you choose to wait two turns and get another job, everything is the same.
  • Fast Track players can lend to Rat Race players at the same terms and conditions from the bank except that the rate is 5% instead of 10% per month. This serves two purposes: (1) it allows players to restructure debt like you would in the real world and provides more realistic exit strategies for debt and (2) it keeps Fast Track plays from getting quite as bored because there are things the can do in the Rat Race, where the lessons in the game are really learned.

Cashflow 202



  • Spare Time Co.: Players can sell Spare Time Co. 1 cards but not 2 or 3's.

2 comments:

Greg said...

In the spirit of encouraging folks to do due dilegence, would it make sence to have a copy of rules available for folks to acquire for some fee . . . . maybe they take a week off to do research, so they loose twentyfive percent of their income. Maybe they are on top of things enough to have brought a set when they arrive. Not sure, but having this wonderful resource and then giving it away with no cost is rather outside of the realistic experience you are doing a good job of providing. Just a thought.

Greg

Rat Race Escapes said...

Interesting thought about everyone bringing there own copy of current house rules. Same kind of thing Rotary does (in real life) if someone is late or forgets their pin. The $5 "fine" goes to the clubs operating account; It's a token amount really that encourages on-time attendence (it's rude to speakers and other members if you are late) and encourages boosterism of the club (pin wearing, etc.), etc. etc.

I'll consider this. It's a really good idea.

Maybe impose a cash amount of $1 AND 1/4 of their income for 1-3 paycheck. $1 shouldn't kill anyone and it DOES cost me money every month to host (which I enjoy). Most people don't refer to the house rules anyway and they need to.

Due diligence as we know is extremely important. Having due dilligence in the game play should hopefully help drive home the point in real life.

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