Taking The Mystery Out Of Money

If You Get Rich While You’re Young, You Can Have A Blast Growing Old!

“The Only Real Difference Between Wealth & Poverty Is Education.  If You Don’t Understand How Money Works, How Can You Expect To Have Any?” — Lonnie Scruggs

Are you so busy trying to make a living that you aren’t making any real money? Most people spend their entire life working for money, only to wind up old and broke.

If you depend on a “job” for your income, then you need to learn what financially successful people do…make your money work for you. This book shows you how to work smart by doing a little work one time, and getting paid for a long time.

Taking The Mystery Out Of Money is loaded with case histories, examples and money-making ideas to help you understand money & financing so you can reach your financial goals. Making money is easy…if you know how.

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Just Some Of The Topics Covered In This 253-page Book:

· How To Use A Financial Calculator

· Power Of Compounding Of Interest

· How Many Doubles Do You Have?

· How To Create Notes & Cash Flow

· How To Use Notes To Buy & Sell

· How To Improve Notes For Better Yield

· How To Buy Notes In Pieces

· How To Make Big Yields From Little Deals

· Making Hard Money Loans

· Profits From Prepayments

· Time Value Of Money

· Rule Of 72

· Understanding CAP Rates

· Simple Interest vs Compound Interest

· Difference Between Yield & Discount

· How Much Does That New Car Really Cost?

· New Car Or ROTH IRA?

· Money Is Not The Problem.

· Is Being Poor Heredity?

· Job Security Or Financial Security?

· Coulda–Shoulda–Woulda

· Who’s Planning Your Retirement?

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Table Of Contents — Taking The Mystery Out Of Money


Chapter 1

It Ain’t Funny Without Money 12

Cash Flow 12

Who’s Planning Your Retirement? 14

Making Money Is Easy 15

Chapter 2

Choices 16

The Problem Isn’t Money 16

Is Being Poor Hereditary? 17

Be Careful Who Your Friends Are 18

What’s Your Choice? 19

Winners Choice 21

Losers Choice 22

Chapter 3

What Road Will You Travel? 24

Difference In Rich People & Poor People 24

Life Is Short, Do What You Enjoy 25

Job Road 27

Dead End Road 27

Do Nothing Road 28

Financial Freedom Road 28

Chapter 4

Job Security Or Financial Security? 30

Time To Get Real 31

Quit Living In A Fantasy World 31

Chapter 5

What If You Could Turn The Clock Back? 34

Coulda-Shoulda-Woulda 34

It’s Not My Fault 36

Chapter 6

How To Earn A Degree In Debt 38

It Was Such A Lovely Wedding 38

Average Credit Card Balance Is $8,000 40

Minimum Payments On $2,000 42

What The Credit Card People Don’t Tell You 43

$75 Payments On $2,000 Debt 44`

Chapter 7

Who Do You Pay First? 46

The Typical Lifestyle 47

Money Is Not The Problem 49

Put 10% In A ROTH IRA 50

Chapter 8

How Much Does That New Car Really Cost? 52

Gomer Gets The Fever 53

What Happened To Logic & Common Sense? 54

Depreciation Keeps You Broke 56

How To Become A 5 Year Employee 57

Why Not A Used Car? 58

New Car Or ROTH IRA? 59

Financial Freedom, Or Worn Out Car? 60

Chapter 9

How To Use A Financial Calculator 62

Color Isn’t For Looks 64

The 5 Primary Financial Keys 66

Our Standard Table 67

Financial Memory Registers 67

Data Storage Registers 68

Constant Memory 68

CLX (Clear) Key 69

Decimal Places 69

Doing Simple Math 70

HP-12C Platinum Model 71

RPN Mode 71

Algebraic Mode 72

Begin & End Modes 73

CHS (Change Key) 74

Automatic Functions 74

Structuring A Loan 75

Let Your Calculator Do the Math 77

Use The Auto Functions 78

Chapter 10

Charlie’s Loan 80

Our Calculator Has Fibbed 82

Make It Easy-Keep It Simple 85

Selling Charlie A $6,000 Mobile Home 87

Chapter 11

Calculator Exercises 90

Figuring Monthly Payments 90

Figuring Balloon Payments 91

Balloon Payment Using PV Method 92

Balloon Payment Using FV Method 92

Figuring Quarterly Payments 92

Figuring Semi-Annual Payments 93

Figuring Annual Payments 94

Figuring Loan History 95

Payment With Auto Function 96

Payment Without Auto Function 96

Play It Again Lonnie 97

Chapter 12

Figuring Interest rates 100

Figuring Number Of Days Between Dates 102

Date & Day Modes 102

Figuring Yield On A Daily Basis 104

What Would you Pay For This Note? 106

A Better Way 108

Chapter 13

Types Of Interest 110

Simple Interest Method 110

10 Years–10%–Simple Interest 110

Simple Interest Table 111

Compound Interest Method 111

Annual Compound Table 112

Semi-Annual Compound Table 113

Chapter 14

Time Value Of Money 116

Future Dollars vs Today’s Dollars 116

From $11,900 to $69,900 In 35 Years 117

Profit Or Illusion? 118

What Happened? 119

My Restaurant Seminar 120

Same Meal 40 Years Later 121

Same Meal 40 Years In Future 122

How Time Affects Our Money 122

Chapter 15

Power Of Compounding 124

Rule Of 72 124

How Many Doubles Do You Have? 125

Starting At Age 24 126

The Cost Of Waiting 130

Starting At Age 30 131

The Number Of Doubles Make A Difference 132

How Do You Make 15%? 136

Chapter 16

Notes & Paper 138

What Is A Note? 138

Unsecured Notes 139

Secured Notes 142

A Good Note Turns Bad 143

Here Comes Da Judge 144

Keep A Camera Available 145

Determining Seniority Of Notes 146

Personal Property Notes 147

UCC-1 & Chattel Mortgage 147

Chapter 17

What Can you Do With Notes? 150

How To Get A Note 150

Using A Mobile Home To Create A Note 151

The Best Notes are Created 152

Where’s The Money? 153

Banks Won’t Even Buy You A Cup Of Coffee 153

Where To Find The Money 154

Sell Part Of The Note 155

Sell Part Of The Payment 157

Sell The Whole Note 157

Chapter 18

Improving Notes 160

Sammy Didn’t Want A Note 162

Sammy Sells His Note 163

How To Increase Yield 165

Call Mom & Pop 165

From 37% To 266% 166

Everybody’s Happy 167

Chapter 19

Seller Financing 168

82 Year Seller Takes 20 Year Note 169

Advantages Of A “Wrap” 170

Always Ask For A Discount 172

Chapter 20

Buying Notes In Pieces 174

What Does The Seller Need? 174

How To Pay More Than Face Value 175

Substitution Of Collateral Clause 176

Early Payoff & $23,700 177

Time To Talk Discount 177

Chapter 21

Yield vs Discount 180

Yield For 10% Discount 182

Yield For 20% Discount 183

20% Yield vs 20% Discount 183

Difference In Dollars 184

What If Lisa Won’t Sell For $6,838? 184

Paying $10,000 For $10,000 Note 184

You Buy 60, Lisa Keeps 60 186

Balance After 60 Payments 187

Option To Buy Last 60 Payments 190

Chapter 22

Big Yields From Small Deals 192

Stop Thinking Like Average People 192

Real Deals 193

How To Make 15%-20% The Simple Way 194

$308 Monthly For Life 195

Attention Landlords 196

Profits From Prepayments 198

If You Don’t Ask, You Don’t Get 199

15% Discount Equals 31% Return 199

How Does The Note Holder Benefit? 200

10% Discount For 12 Payments 201

8% Discount For 6 Payments 201

Chapter 23

State Usury Rates 190

Chapter 24

Hard Money Loans 208

What Is A Hard Money Loan? 208

Loan-To-Value 210

A Deal In The Making 211

Prepay Points Or Add To loan? 211

Yield If Note Goes 6 Months 212

Yield If Note Goes 3 Months 214

Figuring Number Of Days 215

Yield For 108 Days 216

More Deals Than Money 216

Typical Terms 217

Results Of 3 Month Loan 219

Hard Money Loan Tables 221

Do Your Due Diligence 223

The Paper Work 223

Disbursement Of Rehab Money 224

Loan Instructions 225

HML’s Provide Excellent Passive Income 227

Where To Find Investors & Lenders 228

Chapter 25

Cap Rates 232

The 3 Components Of Cap Rates 233

Understanding CAP Rates 233

Cap Rate Formulas 234

Solving For Cap Rate 234

Solving For NOI 235

Solving For Value 235

What’s A Property Worth To You? 237

CAP Rates Are Only A Staring Point 239

It Just Didn’t Smell Right 241

Are CAP Rates Really That Important? 242

C-S-L-M Formula 242

Non-Assumable Loans 244

A Money Pump 245

Chapter 26

A Little Gold Mine 248

12 Years Later 250

How To Increase Value Of Park 252

A Great Retirement Program 253

Chapter 27

Mister, Can You Spare A Dime? 256

From Dimes to Dollars 256

Are You Working For Dimes? 257

What’s Your Comfort Zone?? 258

Chapter 28

“That’s Where The Money Is” 260

About The Author 263



Sample Pages from “Taking The Mystery Out Of Money”

About The Author

Lonnie Scruggs was born and raised in Virginia. He has been in some type of business most of his adult life. For nearly 30 years he owned, rented, managed and maintained his own rental properties. After becoming a burned out landlord, he began selling off his properties and started buying discounted notes and mortgages. When it became more and more difficult to find good notes, he found a way to make his own. He discovered how to create his own “Mobile Home Money Machine” by buying, selling and financing used mobile homes.


Chapter 1 of “Taking The Mystery Out Of Money”

It Ain’t Funny Without Money

Did you ever stop and think just how many things in our lives are either directly, or indirectly, affected by money? Or how few things we can do that doesn’t require money? Take a minute and think about it. How many things did you do last week, and how many things will you do this week that won’t require money? Kind of scary, huh?

Yet, the majority of the people in this country will never make a serious effort to learn and understand how money works. Everybody wants to make money, but very few will make a real effort to learn even the basic concepts of money. If you don’t learn to understand money, respect money, and value money, how can you expect to ever have any?

Since we have to deal with money every day of our lives, wouldn’t you think the schools would make a more serious effort to teach their students something about how money works? They spend 12 years teaching you how to prepare for a job, and how to work for money, but nothing about how money can work for you. And that’s the real key to reaching financial security.

Cash Flow

What does “cash flow” mean to you? Working a job for a paycheck? A check from a rental property? Dividends from a mutual fund? Earnings from a saving account? A check from some type of investment? A Social Security check? A retirement check from working 40 years on a job?

All of these produce cash flow, but what you should be concerned with is the type of cash flow each check represents. And, just how much of your time and labor is required to produce that cash flow. Does your cash flow come from using your time and labor, or from using your specialized skills and knowledge to obligate somebody else to use their time and their labor?

If you’re unable to get out of bed next week, would any checks show up in your mail box? If so, would they be enough to pay your bills? Or, would you have to put in 40-60 hours on a job? If you create enough Mail Box Money, you don’t have to work a job.

If you ever expect to be financially independent, and enjoy financial freedom, you must understand the different types of cash flow, and what’s involved in producing that cash flow. And the first thing you need to learn is how to create positive and passive cash flow that doesn’t require you to be there. You need to have something working for you, instead of you…something that will pay the rent and put groceries on your table if you’re unable to work.

Contrary to what the schools teach, getting a good education, and a good job, with good retirement benefits, just won’t cut it. What you learned in school is one thing, financial education is quite another. How many rich school teachers and professors do you know?

Most students will be just as financially illiterate when they graduate from school, as when they started. And the majority of them will become trapped in low paying jobs and never learn how to do any better. Even more frightening is the fact that the majority of the workers in this country will reach retirement age and still need to work a job, or receive financial help in order to live a decent life.

If you have doubts, just look around you. Do you really think that 60 year old waitress who’s working for tips, is working because she enjoys it? Do you think those “senior citizens” who greet you when you walk into Wal-Mart are there because they don’t have anything better to do? Or because they just like to meet people?

If you don’t want to be one of them, then let’s get real, because you have some serious choices to make. It’s time for you to decide whether you want to be like that waitress, or retire with financial security. If you’re tired of working for a paycheck that’s too small to keep up with your expenses, your needs, and your wants, then it’s time to make some changes.


Who’s Planning Your Retirement?

Let’s say you’re 30 years old and your goal is to retire at age 60 with enough income that you won’t need a part-time job, or any outside financial help. You have 30 years to reach your goals. What’s your retirement plan? Do you even have one? If so, who’s in charge? Is it you, or some “financial planner”? Maybe you expect Social Security to do it? (If it’s still around). Or maybe you’re counting on one of those “Government Gimmee” programs.

That’s enough of those silly ideas, so let’s get down to some serious planning. If you expect to retire with financial security, then it’s up to you to design and implement a sensible and solid retirement plan that will fit your particular situation. And don’t be misled by those financial consultants and financial advisors who try to convince you that they can do a better job of managing your money than you can. (Wouldn’t it be interesting to see their financial statement?).

You need to realize that nobody is going to look out for your financial well being like you will. So it’s up to you to design your own plan that will ensure that you reach your financial goals. Otherwise, you might very well be taking orders for Big Macs or pushing carts in Wal-Mart when you’re 60 years old.

Making Money Is Easy

In my seminars and workshops, I often make the statement that “making money is easy and simple”. Then, after giving the class time to give me that “what kind of a nut do we have here”? look, I add, “if you will learn and understand how money works. If you don’t, then you will spend your life working for people who do understand that principal.”

If you’re still earning your money the old fashion way, (working a job), then Taking The Mystery Out Of Money was written especially for you. And it’s my hope that after reading and learning the lessons I’ve shared with you in this book, that you too will be able to become gainfully “unemployed.”


Power Of Compounding

This chapter may very well be the most important chapter in this book. So I urge you to spend whatever amount of time necessary to

fully understand the lessons outlined in this chapter. If you will learn, understand, and implement the awesome power of compounding of interest, you can become rich beyond your wildest dreams.

Suppose you had the chance to double your money in 10 years, would you consider that a good return? Hold on, don’t be too quick with your answer. Before you can give a qualified answer, you would need to first know what rate of interest you would be earning. Do you know?

If not, don’t feel bad. Unless you’ve studied money and compounding of interest, you probably wouldn’t know. But you will from now on. You’re about to learn a very simple little rule that will enable you to answer such questions in seconds. And you won’t need a calculator to do it.

Rule Of 72

It’s called the “Rule Of 72”. This simple technique makes it very easy to figure out how long it will take to double your money at a particular interest rate. Here’s how it works…

TAKING THE MYSTERY OUT OF MONEY E-book. $19.95 Immediate Download!

Or call 1-800-542-2270 to use a credit card or send a check.

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