Even in the best of markets, doubling your money in a single year isn't likely. Assets held over the longer term have a much greater chance of double-digit or even triple-digit returns. But given the broader market has fallen by 14%, there certainly hasn't been much opportunity for doubling your money as an investor this year.

Many investors are hoping that 2023 will bring new opportunities for higher returns, particularly in the real estate industry. The real estate market is changing rapidly. Both demand and prices are receding as interest rates rise. This may not seem like a good time for investing in real estate, but it actually helps increase your chances of strong returns going forward. Take a closer look at three things you could do in 2023 to get on the path toward doubling your money with real estate.

1. Invest in real estate stocks and REITs

The easiest and most accessible way to double your money is by investing in real estate stocks. Brokerage firms, real estate tech companies, and real estate investment trusts (REITs) have been feeling tremendous pressure in the markets thanks to rising interest rates and a slowing economy.

This has led many real estate stocks and popular REITs to lose upward of 20% to 40% of their value this past year. Which makes right now a tremendous buying opportunity.

During the coronavirus pandemic crash in the spring of 2020 many REITs lost 50% or more of their value. In the year that followed these stocks rebounded notably after showing their resilience and strength despite wavering investor sentiment. I believe many of the REITs that are down in the double digits today will see huge comebacks in 2023 and beyond as the market gains a more optimistic outlook.

Many of the companies are still performing incredibly well. Take industrial REIT Prologis (PLD -1.10%) for example. The REIT is down 24% despite robust demand for the company's nearly 5,000 industrial properties. Its net effective rent change, the difference in rental rates compared to the prior year, grew by 57%. This is absolutely staggering. Its occupancy is nearly 98% and its funds from operations (FFO), a metric that works similarly to earnings per share (EPS), grew by 66%. 

Buying Prologis when its down gives you a greater potential to double your money over the long term while also collecting an attractive dividend yield of 2.4%. It's rare a single stock that will double your money in a single year, but investing in key real estate stocks that are still performing incredibly well and are well positioned to rebound in the coming years will increase your chances of finding a double over time.

2. Invest in rental real estate

Buying a fix-and-flip property has historically been one of the quickest ways to double your money with real estate investing. However, in today's decelerating market it's becoming increasingly challenging to accurately assess the future value of a property, making this investing strategy a risky venture.

Instead, investors should look toward rental properties that can be held for the long term, collecting passive income from the property in the meantime. Here's an example. Assume you purchased a rental property around the median home price of $300,000 at the start of 2023. You put 20% or roughly $60,000 down, receiving a 7% annual return. That equates to around $350 in monthly cash flow.

Over the last 35 years, homes have appreciated at roughly 9.8% per year. Assuming that rate is carried forward, the $300,000 home could be worth around $330,000 by 2030 -- plus you would have collected around $30,000 in rental income during that time. If you hold the rental property for another seven years, your money would be doubled. That's assuming rental rates and your return doesn't increase in that period either.

3. Start investing now

Investing in real estate stocks, REITs, and rental real estate are proven ways to double your money, but it takes time. Investors should buy assets for the long term using today's market conditions to their advantage. Those who invested in real estate in 2007 when real estate prices just began decelerating and the market fell into a deep bear market would still be up 47% and 62% roughly if they held those assets today.

Lock in 2023's low prices and hold for the long term as this will increase your opportunities for doubling your money.