Many questions for Lonnie Scruggs - Posted by Kevin Brown


Posted by sjm(Steve) on January 28, 1999 at 14:54:54:

ROFL = Rolling On the Floor Laughing

ROFLMAO = Rolling On the Floor Laughing My A** Off



Many questions for Lonnie Scruggs - Posted by Kevin Brown

Posted by Kevin Brown on January 27, 1999 at 09:30:07:

This is a question for Lonnie Scruggs. In your articles,
you promote getting an education and learning.

You also claim that you can make prodigious returns on your
money. I.E. like 50% to 200% return on investment.

Well do you have a college degree Mr. Scruggs? If so, did
you study business or finance? How can you make such
outrageous claims when many university professors know that
such returns are almost impossible? If you can make such
returns, than why have’nt you won the Nobel Prize in
economics? If you can make such returns than why are’nt you
managing an investment fund?

In typical fashion, you’ll probably attack me and you will
ignore my legitimate questions!


Great post Kevin… - Posted by Rob FL

Posted by Rob FL on January 29, 1999 at 17:39:13:

Your ridiculus post generated one of the best threads I have seen in several weeks. Maybe you should wise up and take Lonnie’s challenge.


Kev, Kev, Kev. . . - Posted by The Baze

Posted by The Baze on January 28, 1999 at 17:53:08:

Look what you’ve gone & done. In the future remember this:
"When words are not better than silence, one should remain silent."
Kev, your unintelligent words are not better than silence.

Tom Bazley


Re: Many questions for Lonnie Scruggs - Posted by Scott Ryan

Posted by Scott Ryan on January 28, 1999 at 16:23:42:


I think you need to learn some lessons that college may not have taught you - such as manners. I have 5 college degrees (A.A., B.S.W., B.B.A, M.S.S.W., M.B.A), and am working on my 6th (Ph.D.) (What can I say - I like to learn). I have more letters after my name then in the alphabet, but I have learned that there is not necessarily any direct correlation between intelligence and college - and that there are numerous ways that people can ‘know’ things and an infinite amount of ways to acquire knowledge. To that end, I have also bought some courses from this site and others - because I value what they have to say and will integrate them into my personal framework. Instead of showing your knowledge when attacking Mr. Scruggs - you demonstrated
your ignorance. I have not had the pleasure of meeting him or the many other fine people who post at this site, but I am sure that I could learn (and have learned) from many of them. In fact, I have even learned something from you. It is possible to make large returns on investments in many ways in many fields; and I have little doubt that as a master in his field Mr. Scruggs has accomplished this. I hope that you will learn that everyone with a degree is not ‘all knowing’ and that everyone without one (and I do not know if Mr. Scruggs has one or not [and don’t particularly care]) doesn’t know anything of value. There have been many highly educated people who have made HUGE financial mistakes. So, tread lightly and listen to the wisdom everyone, from the homeless person on the street to the nobel laureate, has to offer.



Pretty impressive Kevin - Posted by SAyres(OR)

Posted by SAyres(OR) on January 28, 1999 at 15:22:55:

Just wanted to mention that I am getting ready to graduate with a B.S. degree and can tell from your post that you must be from some ivy league school who feels superior to the world. Let me tell you that although I seriously doubt you will actually ever return to this site again or take Lonnie’s challenge, you desperately need to get an “education”. It is painfully obvious that you have not accomplished this thus far in life.
As far as your college “educators” go, do you ask your barber how to go about managing your investments or how to pick up the women that run around college campus? I have learned a lot in college, but unfortunately none of it will make me any money and truthfully I have trouble studying for exams when I know what opportunites exist right in this college town. Please grow up and take some time to expand your mind.

P.S. Have a “job” lined up yet after graduation or just a lot of bills?


Lonnie Scruggs needs no defenders… - Posted by Soapymac

Posted by Soapymac on January 28, 1999 at 06:32:43:

so three people are going to challenge you…me, myself, and I.

Furthermore, it will cost you only $20 or so to publicly DISPROVE ME…and I will let you do it right here.

My challenge to you:

  1. Make a copy of your post and put it on your wall.

  2. Purchase a copy of “Rich Dad, Poor Dad” by Robert Kiyosaki. I know this is available at or — and then read it thoroughly.

  3. Then…AND ONLY THEN…answer your own questions.

On this board.

And if you choose NOT to accept my challenge…your words are worth less than the hot air that it took for you to type them into your computer.

Put up or shut up, pal.



Well Kevin… - Posted by David Alexander

Posted by David Alexander on January 28, 1999 at 02:43:17:

I guess you’ll just walk away and not respond either, you’ll be getting a ton of email. Take a chance, open your mind up and consider you can learn something from everyone, the greatest leaders or the beggars on the street.

Think about this, Banks have us conditioned to believe that they should get our money and lend it out for US. Why?
They borrow it at 1-4% and lend it out at 7-18%. You’ve stumbled on to an incredible site with people who are not only wealthy financially, but, have been there and are willing to give us a wealth of information for FREE! What Kind of a Return is that?

Only you can judge for yourself. J.P. said something the other day, that you should think about
"You don’t Know what you don’t Know"?
Shouldn’t you at least explore the possibilties. Man, it’s time to open up an take a peek.

And also, of all people to attack, why Lonnie, he’s
not only a great business person, financial genius, gentleman and a scholar, but a friend. He makes himself available to help us all out for free on his time. By the way, don’t know if you’ve figured it out yet, but if you have money, you can buy time and if you
don’t have money you generally don’t have time. I think Lonnies only JOB(sorry, to say that “J” word Lonnie) is going to the mailbox. Can you say the same?

Good Luck,
Your at the right site, sit back learn, enjoy, educate yourself and grow, be careful or you’ll soon make some money.

David Alexander


Pawnbroker makes 1.4 million - $0 invested. - Posted by John Behle

Posted by John Behle on January 28, 1999 at 24:58:40:

Hey Kevin,

What’s the rate of return for this deal? The property was appraised for $2,300,000 and was in default on a first of $1,700,000. We negotiated to buy the defaulted first loan from the insurance company for $850,000.

They loaned the $850,000 needed to buy their own loan at a discount. After foreclosure we took over managment and began collecting a net annual cash flow of $154,000.

Zero invested. $1,400,000 instant equity and over 100k per year in cash flow. When I try to calculate the return my calculator says there is an “error” - I guess your professors are right.


Lesson number ONE. - Posted by David S

Posted by David S on January 27, 1999 at 20:18:03:

here is a short lesson in “economics”;

bought a used mh in a park for 3500.
sold same home “as is” in one day for 6995 with 495 down.
that leaves me with 3000 in a 6500 note which I financed for the buyer for 48 months @ 12.75% interest.

yield = 63.61%… not bad for a high school dropout.

BUT WAIT! I borrowed the entire 3500 from the bank on a 6 month note, no payments with option to pay the interest and ‘roll’ the note for another 6 months. total investment for 12 months using that technique is approx $450. sure, i have to pay for the home eventually, but we are talking annual returns here. If you can count, you will see that I am safe for the first 18 months.

SO… I received 495 down, plus 11 pmts of 173.57 for a total of $2,404.27 with a total investment for that 11 month period = $225 with option to renew.

yield = 925.72 %

Please work on your people skills.

David S


Thank You, Kevin! - Posted by J.P. Vaughan

Posted by J.P. Vaughan on January 27, 1999 at 20:14:17:

Thanks, Kevin. As a result of your misinformed post and
all the replies it generated from people who are making
money on Lonnie Deals, we’re selling Lonnie’s books like
crazy today! Everyone else seems to know a good thing
when they see it.

JP Vaughan


Re: Many questions for Lonnie Scruggs - Posted by Rodney (AZ)

Posted by Rodney (AZ) on January 27, 1999 at 20:02:39:

Oh my. Tsk, tsk, tsk. Kevin, you ARE a bad boy. In the old Usenet days, your kind of post was called a “troll”, and you would be pronounced to all the world as a “troller”. One that incites argument, in hope of gaining fleeting and virtual fame, by starting a “flame war”. We, on this list, are many light-years beyond those simple days. You did manage to peak my interest, however, by your ignorant attempt to create controversy. You see, in your effort to unmask the charlatan known as Lonnie Scruggs, you have managed to evoke a solid round of testimonials attesting to the relevance of the methods that he shares with those of us that diligently frequent this website in hopes of continuing our “education”. Where are the posts supporting your position?

This is not a matter of academic debate. Please be advised that our world is not flat. :slight_smile:



Re: Many questions for Lonnie Scruggs - Posted by Rob FL

Posted by Rob FL on January 27, 1999 at 18:22:12:

I think Lonnie said it best. It doesn’t take a college degree to make money. College degrees teach you all type of book theories on how things work. I have a mutual fund through my job (which I got because of my wonderful college education). It made around 15% last year thanks to the bumpy stock market. But I made 18% interest on some stupid tax liens I bought. And I made nearly a 40% return on some rental properties I bought. What’s wrong with these brialliant investment fund managers. A dumb fool like me can make 18 and 40% returns at age 29 with only a BS degree while working 50 hours a week, and these 45 year old MBA investment managers can only make me 15% when their only job is to manage the fund all day long.

I’d listen to Lonnie any day over those guys. Put Lonnie to the test, you won’t regret it.


Re: Many questions for Lonnie Scruggs - Posted by Barbara (ME)

Posted by Barbara (ME) on January 27, 1999 at 16:53:45:

I was one of those who have profited from Lonnie Scruggs’ teachings (see success stories). I had never bought or sold a mobile home in my life and after reading Lonnie’s books I DID WHAT HE TOLD ME and in a short period of time did it ever work!
(See my success story on this site).There are many more who have done as well or better thanks to Lonnie.
'Nuff said.
Barbara (ME)


Re: Many questions for Lonnie Scruggs - Posted by Lonnie

Posted by Lonnie on January 27, 1999 at 15:54:10:

Hello Kevin,

My gut feeling tells me this is a bogus post by someone that likes to stir up the waters to see what comes to the top. Kind of like a pyrotechnic nut that likes watching his work. But, in the event you?re a real person, and your post is legit, I?ll address it.

Learning and education? You betcha I promote learning and education. I?ve lived on both sides of that fence and I can speak from personal experience. And I can tell you, ignorance is much more expensive and painful, than education. Are you saying you don?t believe in education? What is your profession, and net worth, and how did you achieve it?

No, I don?t have a college degree, just lucky, and fortunate, I guess. Never had any desire to go and couldn?t have afforded it if I had wanted too. But, I have often wondered what my life would have been like if I had gone. Maybe if I had, I could be holding down a “good job” with “good benefits” and a “good retirement” plan, (what a horrible thought.) instead of hanging around the house, doing what I like, and waiting for the mail carrier to bring the checks.

Yeah, I?ve done a lot of studying about business and finance, but I never learned it in school. Don?t remember any teachers that knew how to teach it. How many rich teachers, or college professors do you know? I don?t know any, but I have to admit that my lifestyle doesn?t put me in contact with many of them, either. Are you saying college professors are the people you want to teach you how to make money? Can you name a couple for us?

A Nobel Prize? Now, that?s really something I should be thinking about. How many pizzas and beers would that buy me?

And pray tell me, why in the world would I want to be managing an investment fund? Isn?t there already enough idiots doing that? (And I don?t know any rich folks in that business either, do you?) I look at investment managers and counselors the same as a politician that loses the election. When they can?t do anything else, they can then become consultants, as long as it?s someone else?s money. Frankly, I can?t think of many things I had rather not do. (But come to think about it, I guess I am managing an investment fund…mine, which has done very well, thank you.)

Kevin, if you?re for real, I?ll accept your challenge and show you how to make these “impossible” returns that can?t be made, providing you accept my challenge. My challenge is for you to be at the CRE convention, listen to everything I tell you, then go home and DO what I tell you. And if you don?t make a MH deal within 30 days, with the kind of returns that I talk about in my books and articles, I?ll pay the $495 cost of the convention. Is that fair? Now, we?ll find out if you can fish, or just cut bait.

As for attacking you, no I?m not attacking you, looks to me like you?re doing a good job without my help. However, I will have to say that if ever I?ve seen anyone needing an attitude adjustment, you?re it. According to a Harvard University research report, (do professors do these researches?) 85% of success is a result of your attitude. If that?s true, you?re working on 15%, and on the wrong end of the numbers. And I wish you luck, you?ll need it. If I can offer any help, give me a call (757-436-2197) Will I see you in Dallas?

Best wishes


Ha Ha Ha!!! - Posted by Dirk Roach

Posted by Dirk Roach on January 27, 1999 at 14:19:37:

Thanks Kevin,
you have made my morning. After reading your above post it is hard for me to take your statements seriously at all though.
Anyhow it seems your post was to a simple way to stir things up a little. I would’ve been more impressed however if your post would have had some more subtle and intelligent arguments or perhaps addressed some valid points.
Unfortunately it (your post) did not and thus is not really worthy at all.
If you do have some legitimate, intelligent and relevant questions, feel free to post them and I’m sure that everyone who has utilized and reaped the rewards of Lonnie Sruggs’s method’s will be sure to promptly walk you through them.
Anyhow thanks again for your post, but next time you would like a little attention try not to try so hard, it’s really obvious,
Dirk Roach


Re: cute story - Posted by Ben

Posted by Ben on January 27, 1999 at 14:12:13:

This debate reminds me of a story I just heard. A
man is down on his luck and stops in at a brothel to see if they need anyone to do odd jobs. The madam says “no, but we need a bookkeeper”, the man says “but I cannot read or write”. The woman feels sorry for him and gives him a hundred bucks. The man buys a crate of bananas
and sells them on the street, re-invests the profit year after year and ultimately ends up owning a chain of supermarkets. On relaying his life story someone asks
him "wow, you’ve become quite a success,imagine if you could read or write, where do you think you
would be today?, the man says, I would be a bookkeeper in a brothel !


Academic Credentials or Results?? - Posted by drew

Posted by drew on January 27, 1999 at 13:26:51:

Dear Kevin,

If you’re interested in following someone with academic credentials then you are in the wrong place. Go get your MBA and sit in an office at a Fortune 500 company.

If you want to learn something useful and follow people that get results, then climb aboard and try be a little more respectful from now on. Just because this is via internet doesn’t mean we should be careless with our manners.


P.S. I have a BS in Engineering, MA in Economics, and 1 year in a Finance PhD program, but I thoroughly respect and admire Lonnie and the other investors that post here (regardless of their “Academic Credentials”).


Kill the carrier … Here we go! - Posted by Redline

Posted by Redline on January 27, 1999 at 13:20:28:

**You also claim that you can make prodigious returnson your money. I.E. like 50% to 200% return on investment.

If you don’t believe an investor can make these returns on his/her money, then you’ve been listening to the ‘wise’ too long my friend! It is the ‘wise’ of this world that tell you things cannot be done! It’s the ‘wise’ that tell you “Invest your money with us … after all, we know much more than you! Don’t worry … we’ll take good care of your money!”

**Well do you have a college degree Mr. Scruggs?

I wasn’t aware this was needed to make money.

**If so, did you study business or finance?


**How can you make such outrageous claims when many university professors know that such returns are almost impossible?

Is this like 4 of 5 dentists recommend Crest? First of all, most of us here know alot more than university professors. When did university professors become the be-all-end-all pool of knowledge? Secondly, which professors are you talking about? This sounds like something a high school student would argue. (you know, someone who’s never MET a university professor!)

**If you can make such returns, than why have’nt you won the Nobel Prize in economics?

I’ve actually won the Nobel prize for excellent electronic combacks. (not too bad in person, either!)

**If you can make such returns than why are’nt you managing an investment fund?

Well, if my limited knowledge serves me right, Lonnie deals in RE and mobile homes and investment funds deal with the financial markets. As far as investment goes, they are very different. (If you don’t understand the difference, then this would explain the question).

**In typical fashion, you’ll probably attack me and you will ignore my legitimate questions!

You will probably consider this an attack, but I am merely holding up a mirror to show you how ugly and unimpressive this all sounds.

Now, I have never done a “Lonnie deal” and have no interest what-so-ever in mobile homes. Hell, I’ve never even read any of his material so if you want to say he’s full of it, that’s fine. I would suggest you take a look first, however before you pass judgement.

My problem with your comments stems from the fact that you don’t make any sense. It’s obvious you base your reality on what other people tell you - not what you YOURSELF have found to be true or untrue which is very ‘wise’. You listen too much to the ‘wise’. You know, the 9-5 type that know everything and have nothing. The kind that tell you how smart they are all the time, and show you their degrees pinned up on their walls. See, they don’t want to see you move up because then they don’t feel so good about themselves. So they down everything you try to do and tell you it can’t be done.

Look into the material (any material) before you rip it. There are plenty of people on this little newsgroup that are making money in RE. Some of them full time. Some of them use the same info Lonnie has supplied - that you rip as worthless - and it works for them.

So what does that say about you?



Here are answers - Posted by Mark R in KCMO

Posted by Mark R in KCMO on January 27, 1999 at 12:18:55:

Yes Lonnie reccomends getting an education, you are correct.

>Well do you have a college degree Mr. Scruggs?

There is no mention of it in his books, so it is safe to know that it isn’t required.

>If so, did you study business or finance?

His Experience shows that he knows and understands business. The knowledge of the Lonnie deal shows that he also understands finance.

>How can you make such outrageous claims when many university professors know that such returns are almost impossible?

Name 6 University professors that make that claim? I know of no that claim high returns are almost impossible?

>If you can make such returns, than why have’nt you won the Nobel Prize in economics?

Finance and Economics are NOT the same subject, I am aware of no Noble Prize for finance.

>If you can make such returns than why are’nt you managing an investment fund?

That would be a Job, Lonnie has no desire for a job.

Kevin, I will be glad to help you get involved in “Lonnie Deals” or help you choose what methods of real estate investing will be good for you.

Please Feel Free to E-mail me, with any questions that you may have.

Hope This Helps

Mark R in KCMO