Real Estate Investing: Avoid Costly Mistakes with Insights from Bob Lucido
With decades of experience in real estate, Bob Lucido has guided countless clients through the complexities of buying, selling, and investing in property. In this blog, Bob shares his expert insights on the most common pitfalls investors face—and how to avoid them. Whether you're a seasoned investor or just getting started, his advice can help you make informed, strategic decisions in the ever-changing real estate market.
Investing can be scary, but it doesn’t have to be. I made a few mistakes early in my career as an investor that have taught me the smartest ways of doing business. Now, I’m confident that my strategy works to curate the most profit, and I have had the success to prove it.
In 1987, I made the decision to invest in what was then called the Easton Building in Old Ellicott City on Main Street. With the help of 2 partners, I bought it for $90,000 with the intention of selling it quickly for $300,000. We achieved this, but ended up having to put another $100,000 into it on top of the initial $100,000 we spent on renovations. Needless to say, we barely broke even.
This was a tough loss, but it taught me some of the most important lessons about investing that have guided me to great success investing since.
The first lesson is knowing your why.
There are many reasons why you should consider buying an investment property. My reason was my daughter, Lauren. I wanted to fund my daughter’s future college education with my investment property profit. Your reason may be to pay less in income taxes, generate wealth for retirement, be financially independent, etc. The reasons to invest are expansive, but you should have a specific reason of your own. Narrowing your goal will help you narrow your path to achieve it.
Once you have your why, the second lesson is knowing who you are.
Knowing who you are is crucial. The outcome of my first investment deal showed me who I was early on. I did not like being ‘the money guy,’ the one who finances the project, and I knew I wasn’t the ‘hammer guy,’ the one doing all the fixing up. My skills allow me to successfully play the part as the ‘rainmaker,’ the person who finds the deal and makes it happen. Taking ownership of your skill set is important when deciding who you want to be and what role you will best play in the investment deal.
The third lesson is setting an objective.
When investing, your goal should either be to 1. repair, renovate, and turn a quick sale for profit or, 2. buy and hold for more money, tax savings and appreciation. Keep in mind, it is very difficult to make quick money. I always think long term.
By following these lessons as guides, I achieved my goal. I paid for my daughter’s Bucknell University college tuition using only the profits from one investment property in Columbia, MD.
pitfalls to be mindful of:
- Don’t buy the deal - first buy the location and community.
- Be careful owning an ink pen! [Watch what you sign and guarantee.]
- Be careful of the potential liabilities - lead paint, communities, asbestos, etc.
- Consider local properties that you know rather than a great deal out of your state/neighborhood.
- Know the laws regarding leasing so you can avoid violating any laws.
- Partner with people you trust. Use only licensed, insured, and bonded contractors. [Uninsured contractors are a huge liability.] You do not necessarily need a property management company. Engage a REALTOR® you can trust with a spotless reputation and career history of integrity. Google any Realtor you are considering and check the Maryland Real Estate Commission judiciary case search.
- After you have accumulated a strong equity position in your property, consider refinancing rather than selling to avoid tax consequences. .
Remember, the hardest thing to do is buy your first rental property, the easiest is to buy the second!
If you want to learn how to buy your first investment property for a college fund, retirement or just to build wealth, attend our Wealth Building Workshop on February 26th. I will be glad to show you how you can become a millionaire using the same framework I used to become a millionaire by the age of 30!
-Bob Lucido, CEO + Associate Broker
Bob Lucido Team of Keller Williams Lucido Agency + Lucido Global
Are you ready to take control of your financial future? Join us for the Wealth Building Workshop with Bob Lucido and discover actionable strategies for building lasting wealth through real estate investing. This exclusive event is designed to empower you with the knowledge and tools to grow your financial portfolio, maximize your investments, and unlock opportunities for long-term success.
š
Date: Wednesday, February 26, 2025
ā° Time: 5:30 PM – 7:30 PM EST
š Location: Lakeside Title Company
9200 Old Annapolis Rd, Suite 200, Columbia, MD 21045
Don't miss this chance to learn from industry leader Bob Lucido and start turning your financial goals into reality. Spots are limited—reserve your seat today!
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