A renowned Florida city known for its wealthy residents and glamorous appeal has surprisingly become a treasure trove for investors. As one expert suggests, there’s no better time than now to invest in less attractive properties.
Carlos Eduardo Rojas, an experienced broker who began investing in the area 25 years ago, recently shared on a podcast that the future of real estate investing is centered on an unexpected location – Miami.
But the smartest investment isn’t in the flashy, high-end homes, as reported by the Miami Herald.
It’s in the overlooked, less polished properties tucked away in up-and-coming neighborhoods – particularly Wynwood.
‘Ugly things with potential are where the money is,’ Rojas, who is Venezuelan, said during the episode of Miami Oculto, which was posted to YouTube.
‘There isn’t much money in beautiful things,’ he added.
In a podcast episode from June, the Miami Riches broker emphasized how the market has transformed over the past ten years, noting that what once attracted buyers is no longer the most financially sound choice.
In the early 2000s, for instance, investors who bought properties at pre-construction prices in Miami often struck gold.
A Florida city famed for its millionaire residents and celebrity allure is now an unlikely goldmine for investors – and according to one expert, there’s no better time than now to buy up ‘ugly’ properties
Carlos Eduardo Rojas (pictured), a Venezuelan veteran broker who began investing 25 years ago in the conservative stronghold, revealed on a recent podcast episode that the future of real estate investing lies in an unexpected place – Miami
The smartest investment isn’t in the flashy, high-end homes, according to Rojas. It’s in the overlooked, less polished properties tucked away in up-and-coming neighborhoods – particularly Wynwood (pictured)
Then, the 2008 financial crisis, the market crash, and later the impact of Covid completely changed the game – turning many South Florida homeowners into millionaires as property values soared.
This ushered in Miami’s new identity: an exclusive playground for glamorous celebrities, executives and hedge fund elites – living in sprawling mansions tucked away in Miami Beach’s gated enclaves.
Some aspiring investors still hope pre-construction properties will bring the same returns as years past, but Rojas warns that’s no longer true – regardless of what you’ve heard.
He explained that, after multiple crises, a staggering 95 percent of pre-construction projects are marketed as great investments – but more often than not, that’s misleading.
Once you acquire the property, Rojas noted, you often find it’s worth less than what you paid.
This happens because builders set high entry prices early on, and when the buildings are completed, an oversupply floods the market – largely fueled by buyers misled into thinking they were making a smart investment, which simply isn’t true today.
But if pre-construction is no longer the golden ticket for your pockets, how do you make a smart investment in the so-called playground of millionaires?
Rojas summed it up simply during the podcast: to succeed, you’ve got to ‘get your hands dirty’.
In the early 2000’s, investors who bought properties at pre-construction prices in Miami often struck gold, but that changed after the 2008 financial crisis, the market crash and later the impact of Covid – many South Florida homeowners became millionaires as property values soared (pictured: Wynwood District)
This ushered in Miami’s new identity: an exclusive playground for glamorous celebrities, executives and hedge fund elites – living in sprawling mansions tucked away in Miami Beach’s gated enclaves (pictured: skyline of Miami)
There are three ways to make money in real estate, Rojas described: property appreciation, rental income, and depreciation benefits. To truly succeed, an investor must maximize all three – creating value from every angle.
When you invest in construction, ‘you are buying a high point, meaning that in revaluation, it will be very difficult,’ Rojas said during the episode.
Second, rental profitability can be estimated in advance, since comparable buildings or properties are usually available to help gauge expected returns.
However, one of the most unconventional – but valuable – pieces of advice Rojas shared came from a seasoned colleague, who once told him: ‘Ugly has potential.’
‘The formula isn’t just to buy something cheap,’ Rojas warned. ‘Because you don’t want to buy something cheap and wait 50 years.’
Earlier this year, Miami’s housing market stood on a knife’s edge, as a wave of homebuyers backed out of deals – highlighting a volatility that, as Rojas explained in the podcast, can no longer be ignored.
In April, inventory flooded the market – triggering price cuts and stalled sales – as fears of a recession grew in response to President Donald Trump’s tariffs.
In March alone, 18 percent of pending home sales in the city fell through.
It gave the city the 20th-highest cancellation rate among the 50 largest US metropolitan areas.
There are three ways to make money in real estate, Rojas described: property appreciation, rental income, and depreciation benefits. To truly succeed, an investor must maximize all three – creating value from every angle
However, one of the most unconventional – but valuable – pieces of advice Rojas shared came from a seasoned colleague, who once told him: ‘Ugly has potential’ (pictured: Wynwood Art Basel event)
Sellers scrambled to close deals within 24 hours, knowing buyers were more likely to back out the longer they had to reconsider.
Long inspection periods, drawn out closing times and weekslong mortgage approvals also caused buyers to bail.
And Florida is currently undergoing the worst condo crisis in history.
In the four years since the Surfside residential building collapse that killed 98 people, the condo industry has undergone a painful transformation.
It’s become a jumble of soaring insurance rates, complex inspection reports, surprise costs, and a tidal wave of inventory flooding the market.
Basically, Florida homeowners have grown hopeless of ever unloading unwanted properties.
It comes after the pandemic where Florida experienced a sales boom as remote work became common and buyers were drawn to its warm weather, low taxes, and affordable living costs.
From March 2024 to March 2025, Miami’s listings surged nearly 50 percent – ‘a bigger increase than normal,’ according to Realtor.com.
Rojas explained that, after multiple crises, a staggering 95 percent of pre-construction projects are marketed as great investments – but more often than not, that’s misleading (pictured: painted buildings in Wynwood’s art and fashion district)
Meanwhile, homes staying on the market longer that are also priced too high oftentimes causes many buyers to hesitate.
According to Rojas, the key to successful real estate investing in this sought-after city is spotting neighborhoods with the highest potential for appreciation – no matter how ‘hideous’ the properties may appear.
The podcast wrapped up with one crucial tip: to avoid overpaying in neighborhoods still on the rise, follow the trail of foreign capital – but focus on areas beyond where it’s already landed.
