Pitchers vs Throwers — Expertise vs …Not Much — Doing Things On Purpose

Posted @ 10:44 pm - Filed under Purposeful Planning, Real Estate Investing

So what is the difference between a pitcher and a thrower? A thrower just winds up a lets it fly. He figures his fastball is so scary, or his curve ball is so devastating, all he has to do is throw them. A pitcher on the other hand, has a Plan, including not only what pitches to throw, but when, how hard — or soft — and in what location. His strategy is to disrupt hitters’ timing while not putting any pitches over the middle of the plate. Greg Maddux is a pitcher’s pitcher. He’s old now, and his fastball, never scary in his prime, is downright polite these days — when it comes to velocity that is. Yet he keeps getting major league hitters out. How? He knows what he’s doing.

In other words, he possesses real expertise.

What’s the difference between a real estate investment broker/adviser and an agent who ‘does investments’? The guy who does investments asks you what you want. He then finds some, presents you a list, and asks you to pick the one(s) you want to buy. The real estate investment broker/adviser asks you why you’re investing in the first place. He ascertains your current status. He tells you if your goal’s time-line is realistic. He creates a comprehensive Plan, mapping your journey to a successful end.

Real expertise.

Just so you know, this bit is right on point, but also an excuse for Dad to puff up a little. Josh, 26, (first born heir to the BawldGuy Throne) recently pitched a complete game win for his 18 and over AA team. He’s pitched since he was eight years old, up to and including college, where he promptly blew his shoulder out before his first real game. (not a good day) Anyway, as has always been the case, as he was warming up in the bullpen before the game, the other team was walking by, making shall we say unkind comments about his fastball. They actually predicted he’d be out of the game before the end of the third inning.

Indeed, his fastball hasn’t reminded anyone of Sandy Koufax since he left Little League. He’s a pitcher though, not a thrower. To make a long story short, by the end of the eighth inning Josh was ahead 12-3, giving up just seven hits and three earned runs. The aforementioned chatty hitters didn’t seem to be in a chatty mood now. In fact, their bats had been relatively silent all game, unless you call grounding out all day making noise.

Real expertise.

What’s the point?

Advising folks about their investment real estate is much the same as pitching. You can throw around the right words, (or as Greg Swann would no doubt say, the nomenclature) but if an investor doesn’t know what real estate investment is all about — they’re like all the rest of those minor league pitchers who will never play in the majors. They can throw 98 mph, but don’t have a clue where it’s going — or why.

Ouch!

Real estate investing isn’t for sissies.

There are so many factors in need of understanding. Those factors must me successfully combined into a cohesive and understandable plan. To do this there is analysis to be done, timing to understand, markets to gage, and tax ramifications to help bollix everything up. And we didn’t even mention financing yet. Who’s gonna manage out of state properties? Should I refinance, sell, exchange, or do nothing? What is this cost segregation anyway?

Ever watched Greg Maddux pitch? A baseball newbie watching him warm up before a game would conclude he was a junior college pitcher — not the certain Hall of Famer he is. Why? Probably because my Aunt Evey can throw harder than he can. His fastball is this much better than no fastball at all — except for one thing — he can make it dance on the way to the exact location he intends. He never intends it to end up in an easily hittable location. Imagine that. He is also constantly changing speeds.

In other words he disrupts hitters’ timing, which is the whole agenda of any smart pitcher. Home plate is his — the batters — visitors at best.

Real expertise.

We’re in a real estate market right now when the so-called deep thinkers are saying it’s time to be on the sidelines. Then why is there an investment group looking to acquire 200 homes in a future growth area before the end of the year? Ah, that’s this year. They must be dumb — right, dumb like foxes. It could be any city with great fundamentals. They understand timing, just like a smart pitcher. Of all the investment factors, timing is certainly pretty high on the list.
Whether it’s knowing what makes a good pitcher or real estate broker, it still comes down to expertise.

You either know what you’re doing or you don’t.

Same goes for your broker/advisor.

The trouble starts when you find out your fastball down the middle might not be the stellar pitch you thought it was — or when you find yourself wondering why you’re the one telling the agent, who ‘does investments’ what to do.

Here’s the today’s question.

Is your agent a pitcher or a thrower?

This entry was posted on Thursday, October 4th, 2007 at 10:44 pm and is filed under Purposeful Planning, Real Estate Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.