Thanks so much for sharing this with us. I had to watch this video three times because it was so shocking to me personally.
First of all, Lonnie Scruggs has given so much to many of us and we owe a small part of our success to him directly. What this con artist did to him makes me want to hunt the guy down and let some of my old Special Ops buddies practice their terrorist interrogation tactics on him.
Secondly, you can often judge the character of a man by the humbleness he displays. In Lonnie’s case, he’s one of the most “street smartest” investors I’ve ever met. To go on public television and admit that he made a mistake, especially in the real estate investment arena, is a great testimony of his character. I know his heart and he did it primarily so others wouldn’t make the same mistake he did.
I know Lonnie well and you can rest assured that he didn’t put all of his eggs in one basket with this predator. But, above all take Lonnie’s words to heart and make sure you protect yourself in any investment with another individual.
Many of you know that I have done several joint venture deals with investors on this forum. In EVERY case, paperwork is drawn up that protects everyone involved from each other. It’s not because I don’t trust my partners or they don’t trust me, I do it because it’s smart business and if a deal turns south one person doesn’t get left holding the bag.
Don’t let this incident turn you completely away from a joint venture or partnership situation. Just be smart about it and follow good business practices and document everything.