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How to Invest in Real Estate in 2023

Tagliamonte & Associates

How to Invest in Real Estate in 2023

The past couple of years have been an incredible whirlwind, especially in real estate. During 2021 and 2022, there have been record-low interest rates, unprecedented buyer demand, and a significant shortage of housing inventory. These factors, combined with a high fluctuation of Millennial buyers entering the real estate market, real estate investment presented its own challenges. As interest rates increase and housing inventory increases, there has never been a better time to pursue real estate investment. So how do you know if waterfront property in Fort Lauderdale, Florida, is a good investment? What are the qualities you should look for in an investment property? Here is everything you need to know about Florida real estate investment in 2023.

Consider the type of investment property

When investing in real estate, knowing where to start can often be overwhelming, especially if you have never invested in real estate before. This can apply to first-time homebuyers searching for Fort Lauderdale homes for sale or investors searching for the ultimate income property. Regardless of your situation, knowing your ‘why’ is one of the most powerful tools at your disposal.

Before you begin your property search, know what type of investment property you want. Are you searching for a property to flip and resell? Are you searching for a rental property? If you are searching for a rental property, what kind of rental property are you looking for? Are you looking for a property you can convert into a vacation rental, or do you want long-term renters? If you are searching for rental properties, for example, you need to determine if you want a single-family property, a duplex, or a multi-family property.

No two investment properties are created equal. The purpose of your investment will dictate many aspects of your property search, including your financing options. Investors who want a vacation rental versus those searching for a multi-family income property will have different financing needs.

Once you have determined the type of investment property you need, you can begin your property search in earnest.

Research your local market

Knowing the type of investment property you want is just the beginning of your real estate investment journey. One of the most important steps of any real estate transaction is researching the local market. If you are searching for an investment property in the Fort Lauderdale area, then understanding local market trends is essential in order to make a sound real estate investment.

It is also worth noting that Fort Lauderdale is currently in a buyer’s market, meaning there is more housing inventory than there are currently qualified buyers. For investors, this works as a double-edged sword. On the one hand, investors have a lot more options to choose from when it comes to income properties and have more leverage in order to strike a business deal. If you are a property flipper, on the other hand, it means you will have to make smarter renovation decisions in order to secure the highest net profit possible. A buyer’s market can be great news for investors who want to hold on to their properties for the long term. Real estate markets are cyclical, meaning Fort Lauderdale will eventually be in a seller’s market once again. Once that happens, you will have the perfect opportunity to sell your property for a much higher profit.

Hire a local expert

Whether you are relocating to the Fort Lauderdale area, are a lifetime resident of the area, or live in another state, one of the most important steps you need to take is to hire a local real estate agent. Every investor benefits from working with an experienced real estate agent, especially one familiar with Fort Lauderdale’s rental market. Your real estate agent can not only help you navigate Fort Lauderdale’s dynamic real estate market, but they can also provide valuable insights on a property’s potential return on investment (ROI).

What qualities should you look for when hiring a real estate agent? As an investor, you should work with an agent who is an expert in the local real estate market, an industry expert with years of applicable experience, and who is reliable and trustworthy. Above all else, you should feel confident that your real estate agent will help you accomplish your investment goals.

Regardless of your experience level with investing, your real estate agent is your lifeline when trying to find your ideal investment property.

Start your property search

After you and your agent have connected is when the real fun begins. While you and your agent go on property searches, research each property you are looking at. Does the property have a history of generating income? If so, what is the ROI on the property itself? Once you find some viable options, you and your agent should sit down and figure out the pros and cons of each property. Once you have chosen your ideal investment property, act quickly! Even in a buyer’s market, you never know whether or not you are competing with another buyer for the same property.

Once you are ready to submit an offer, sit down with your agent and draft a purchase agreement. Figure out how much you want to offer and how much earnest money you will deposit, and add any contingencies you might want. Once you have an accepted purchase agreement, you are one step closer to securing your dream investment property. Once your first investment property generates income, it is only a matter of time before you keep building your investment portfolio.

Work with Tagliamonte & Associates to invest in Fort Lauderdale, FL, real estate

Are you ready to build your investment portfolio? Whether you are searching for investment properties in South Florida or Bay Colony Fort Lauderdale, trust our team at Tagliamonte & Associates to help you find your next investment property. Contact Sandra Tagliamonte today to get your property search started.


A top South Florida producer since 2000 and recognized as in the top ½% of real estate producers nationally, Sandra Tagliamonte and Tagliamonte and Associates take pride in their ability to assist clients in the most effective and successful ways.