There are so many factors involved in the ‘simple’ act of buying a piece of real estate, isn’t there? What separates those for whom net worth seems to grow unfettered, seemingly without regard to type of property or its location? How is it some folks seem always on the upside of a market — even when first glance has most concluding they should stay away?
Knowing where to tap.
In San Diego, back in 1974-75 there was a downturn. I was a 20-something house agent at the time, but distinctly remember Dad’s investment friends holding forth after their daily group exercise session at Cottonwood golf course. They were making fun one day of President Ford’s WIN buttons, which stood for Whip Inflation Now. That conversation, heard while enjoying the best french fries on the planet back then, was the beginning of my real estate investment education.
One of them said it was time to start tapping. Uh? What?
After asking Dad who’d invited ‘the pup’ one of them said it was time to start buying in earnest. The recession had brought much of real estate to a halt, and they’d decided it was time to start investing in earnest. But what did tapping have to do with anything?
Tell him the story so he’ll shut up already. (In case you haven’t figured it out, I was allowed to be around these local pillars of real estate experience and wisdom, but only if I accepted whatever degree of abuse they deigned to dish out. They scared me just enough to gain my consistent good behavior.)
That’s the first time I heard the ‘Knowing Where To Tap’ story, told each time as if I’d never heard it before, while I listened as if indeed they weren’t telling it to me for the umpteenth time.
Submarines are a floating miracle of survival under water. The systems must work always, which puts a premium on pipes, which are myriad in number. You have a ‘plumbing’ problem in a sub at the wrong time and you better have someone who can fix it in a hurry. So anyway, while in for repairs, all the normal experts couldn’t fix a problem on one particular sub.
So they called the one guy whose name kept flowing from the lips of those who failed.
He showed up at the appointed time, and took about an hour or so to check out the problem. He then went to his remarkably compact tool chest and took out a strange looking hammer. Twice he went to specifically located spots — and, using his hammer, tapped
Problem solved.
The brass were thrilled, telling him to send them his bill for payment. The brass were outraged when they saw his bill, and called him immediately.
What made him think he was worth $25,000? They demanded he itemize the invoice. So he did.
$150.00 — Trip Charge
$24,850.00 — Knowing where to tap.
Real estate investors need to know in their hearts one thing for sure — they know exactly what they’re doing. If honest, most will admit, even if only to themselves, they may not have all the experience, 
knowledge, and expertise required to make excellent investment choices in today’s atmosphere.
In other words they’re really not sure where to tap. Are you sure?
Or, do you know a professional who does?
Ah, now there’s a thought. 
Related posts:
- Driving Down Pothole Boulevard — The Cost of Not Knowing What You Don’t Know
- Media: Do Real Estate Investors Want Accuracy or Truth?
- Beginning Real Estate Investors — 3 Things To Avoid
- #1 Reason Real Estate Investors Cause Their Own Train Wrecks
- San Diego Real Estate Investors — How’s That Income Property Workin’ For Ya So Far?
About BawldGuy
Jeff,
Brilliant! I loved the story, and especially the breakdown of the bill. Isn’t that what our clients expect of us – that we know where to tap?
They do Vance — though it’s hard for me to understand how an agent who was selling homes last month is a real estate investment guy this month.
When the guy told me the story he wrote the invoice on a napkin.
Jeff,
You know, the greatest football coach in my alma mater’s history, Bo Schembechler, had his first contract written on a napkin, as well. Greatness is not bound by a contract, nor the quality of the paper. Greatness is shown by “the tap”, on a consistent basis. If only there were some way to codify the requirements for that greatness!
Growing up in the business, as it sounds like you did, reminds me of one of my associates at my first brokerage, who grew up in his dad’s business. We began work together as office associates, and were like brothers at the time I moved on to a larger broker. He’s still a brother to me, and we end up referring business to each other – even though we work in the same town. He showed his greatness by knowing where to “tap” with me, and I respect that ability to this day.
That’s so nice when it’s available. The folks I cut my teeth with in investments are either dead, or living on some island.