How to Start a Real Estate Business

So, you’re thinking about how to start a real estate business. Fantastic! You’re probably picturing yourself cruising to Friday afternoon closings in your Mercedes, but let’s discuss setting up a solid foundation. Because, much like an actual house, you can’t build a solid real estate business on shaky ground.

The best real estate experts:

• Leverage vast networks of contacts, friends, family, and acquaintances.
• Work consistently on prospecting and follow-up.
• Provide unforgettable service that makes people feel confident about referring them to friends and family.

Does that sound like your cup of tea? First things first, know what you’re signing up for.

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Breaking ground to start a real estate business

Real estate isn’t just about showing fancy houses and shaking hands with eager buyers. It’s a juggling act of legalities, customer relationships, and financial know-how:

• Market trends – Are home prices skyrocketing, or are buyers playing hard to get? Knowing the market helps you strategize.
• Types of real estate – Residential, commercial, industrial… What’s your flavor?
• Essential skills – Negotiation, marketing, legal compliance, and customer service. You might want to rethink this career path if you’re not a people person.
• Legal & financial considerations – You’ll want to brush up on everything from property laws to financing options to serve your clients well.

And let’s not forget relationship-building. In real estate, trust is a must. It’s your ticket to repeat business and word-of-mouth referrals. This usually requires daily elbow-rubbing, hobnobbing, and many messages and phone calls.

Don’t be afraid to seek out your local real estate stars. These are seasoned pros that you can learn from. Brett Jennings is a top-producing real estate agent and founder of Real Estate Experts, one of the top real estate groups in the United States. He interviewed 42 of the top 100 agents in his county before taking the leap from financial services to real estate. That’s a lot of collective experience to pull from.

Structures for a real estate business

Choosing how to structure a real estate business isn’t just a box to check. It affects your taxes, legal protections, and daily operations. Most people start small as a sole proprietorship, then move on to something more income-tax-friendly after seeing what happens to the self-employed during tax season.

• Sole Proprietorship – The easiest to start but offers the least liability protection.
• LLC (Limited Liability Company) – Keeps your personal assets safe if things go south. Flexible, but requires some paperwork.
• Partnership – Got a reliable business buddy? Partnerships can be great, just make sure you trust them (and have a solid contract in place).
• Corporation – If you’re aiming big, this offers more scalability and tax benefits but also comes with more rules and red tape.

Whichever structure you pick, you’ll need an Employer Identification Number (EIN) for taxes and banking. It’s like your business’s Social Security number. It’s very easy to obtain via the IRS website.

What’s the plan?

A business without a plan is completely rudderless. Business planning defines your scope and mission and provides a roadmap to success. When deciding how to start a real estate business, consider:

• Mission and vision – Why are you starting this business? (And no, “making money” isn’t a deep enough reason.)
• Market analysis – Who’s buying? Who’s selling? Who’s your competition?
• Target audience – First-time buyers? High-end investors? House flippers? Pick your niche.
• Financial projections – How much do you need to start? What’s your break-even point? Investors and lenders love these details.
• Marketing and growth strategies – How are you getting leads? Online ads? Social media? A billboard with your face on it?
• Exit strategy – Even if you plan to do this forever, it’s smart to have a contingency plan.

Legal and licensing

You have to play by the rules to start a real estate business. And trust me, there are plenty of them. Real estate is a highly regulated industry, from licensing requirements to broker fees. Skipping a step could land you in hot water or obliged to have an awkward conversation with the licensing board.

Getting your license

Before you start making deals, you’ll need the proper credentials. Most real estate professionals begin their careers as licensed real estate agents or salespersons, working under a broker. Each state has its own licensing requirements, but the general process usually involves:

1. Pre-licensing education – Taking state-approved real estate courses.
2. Passing a licensing exam – Testing your knowledge of laws, ethics, and real estate practices.
3. Finding a sponsoring broker – Since new agents can’t legally operate solo, you’ll need to place your license under a broker, who will likely charge you fees in exchange for office support, training, and legal oversight.
4. Submitting a license application – Paying your dues (literally and figuratively) to get officially recognized by the state.

Once you’ve got your license, it’s not time to rest on your real estate laurels quite yet. If you’re thinking about assembling your own real estate dream team, you’ll need some experience before you can work as a broker.

The path to becoming a broker

If you’re dreaming of running your own real estate firm, you’ll need to become a licensed broker first. That doesn’t happen overnight. Most states require real estate salespeople to gain experience (typically 1-3 years) before applying for a broker’s license. Brokers have additional responsibilities, including managing transactions, overseeing agents, and ensuring legal compliance.

Key steps to obtaining a broker’s license:

• Meet the state’s minimum experience requirement.
• Complete broker-specific education courses.
• Pass the broker licensing exam (yes, another test).
• Apply for your broker’s license and register your business properly.

Continuing education requirements

Getting your license is just the beginning. Keeping it active is another story. Most state real estate commissions require continuing education (CE) hours to renew your license.

• For sales agents: States typically require a set number of CE hours every renewal cycle (often every 1-2 years), covering topics like fair housing, ethics, and industry updates.
• For brokers: The requirements are usually higher. Many states require brokers to take additional courses on brokerage management and legal compliance to maintain their licenses.

Failing to complete CE requirements means your license could expire or be suspended, which isn’t exactly great for business. Set a reminder, knock out those hours early, and keep up with changes in the industry.

Financial foundations to start a real estate business

Embarking on a real estate career involves some upfront investments and prudent financial planning. You’ll want to set up a separate business account because you’ve got expenses to track:

1. Understand initial costs

Before rushing into this, be aware of the typical startup expenses:

• Pre-licensing education and exam fees: Depending on your state, these can range from $500 to $1,200.
• Licensing application and background checks: Budget for additional fees, which may vary by state.
• Association memberships: Joining organizations like the National Association of Realtors (NAR) requires annual dues.
• Marketing materials: Initial costs for business cards, basic online advertising, and other promotional materials.

2. Budgeting for the future

Once you’re up and running, anticipate regular expenses such as:

• Brokerage fees: Many brokerages charge monthly desk fees or a percentage of your commissions.
• Continuing education: To maintain your license, you’ll need to complete ongoing education, which may come with associated costs.
• Marketing and lead generation: Allocating funds for advertising, client events, or digital marketing campaigns can help grow your business.

3. Plan for the real estate income rollercoaster

Real estate income can be unpredictable, especially in the beginning. To manage this:

• Build an emergency fund: Aim to save enough to cover 3-6 months of personal and business expenses.
• Track your expenses: Use financial software or apps to monitor spending and identify areas to cut costs, if needed.
• Set aside taxes: Remember, as an independent contractor, you’re responsible for your taxes. Setting aside a portion of each commission can prevent year-end surprises.

4. Explore backup funding options

If you find you need additional funds:

• Personal savings: Many agents start by investing their own savings into their business.
• Credit lines or loans: Consider a business credit card or a small personal loan, but be cautious about accumulating debt.
• Part-time work: Some agents maintain part-time jobs until their real estate income becomes steady.

Choosing the right broker

Since most new agents must work under a broker, your first big decision as a real estate business is finding the best place to hold your license. As a new agent, you want someone who will help you succeed. Each broker does things their way, so your mileage may vary when it comes to:

• Leads and marketing support – Some brokerages let you in on lead generation programs, provide listing exposure, and even marketing materials to help you get started. Others expect you to find your own clients.
• Office floor time and lead-gen opportunities – Some firms rotate agents for “floor time,” where you handle inquiries from potential buyers and sellers who contact the office. These can be solid opportunities to meet new clients.
• Training and mentorship – A broker with strong coaching and networking opportunities can give you a head start in an otherwise competitive field.
• Commission splits and fees – Some brokers charge a higher split in exchange for more support, while others offer higher payouts but expect you to handle everything yourself. Choose wisely.

Your brokerage will play a big role in how quickly you start landing clients, so don’t just sign with the first one that offers you a spot. Remember, this relationship is mutually beneficial. Make sure they’ve got a plan to help you succeed, especially when starting out.

The heart of real estate: networking and relationships

When you’re new, you don’t need a massive marketing budget. You need visibility and credibility. Focus on your contacts. If people you know don’t trust you to handle selling their home or representing them as a buyer’s agent, maybe this whole real estate thing isn’t for you.

1. Network like crazy – Friends, family, and community groups can be your first referral sources. Don’t be afraid to let people know you’re in real estate.
2. Leverage your broker’s branding and tools – If they provide marketing templates, social media assets, or listing exposure, use them. No need to reinvent the wheel.
3. Create a basic online presence – Even if you don’t have your own website yet, set up professional profiles on LinkedIn, Zillow, and your brokerage’s site.
4. Use social media strategically – Start sharing market insights, success stories (even if they’re from your office, not just your own), and neighborhood updates.
5. Learn the art of prospecting and follow-up – Most agents spend a lot of time prospecting for new leads. Many new agents lose potential clients simply by failing to stay in touch. A simple email or check-in call can make all the difference.

It’s all in who you know

Tap into your network to fill your pipeline with leads, referrals, and long-term success. A well-connected agent has access to off-market opportunities, insider market trends, and valuable partnerships that give them a competitive edge.

When starting out, your first network is your family, friends, co-workers, your dentist, and anyone else who ever graced your phone’s contacts. Beyond that, consider connecting with professionals like:

• Other agents and brokers – The competition is not your enemy. Real estate is a cooperative business where cultivating good B2B relationships leads to shared deals and long-term alliances.
• Mortgage lenders – Buyers often need financing, and a trusted lender referral makes the process smoother.
• Title and escrow officers – These professionals handle crucial closing documents and can be valuable contacts.
• Contractors and home inspectors – Having reliable recommendations for repairs and inspections strengthens your client relationships. A good contractor can mean the difference between closing the deal or losing out on a contract.
• Real estate attorneys – Legal issues arise, and knowing a good real estate attorney can save you (and your clients) headaches.
• Community leaders & business owners – Local business owners, HOA leaders, and city officials can provide market insights and potential client connections.

Build your network to keep your pipeline flowing

Lots of real estate pros are social butterflies, but great networks aren’t built overnight. You need to start somewhere outside of your personal contacts. Make your big debut by:

1. Attending local events and industry meetups – Find real estate conferences, Chamber of Commerce events, and networking mixers. Face-to-face interactions build trust faster than any online connection.
2. Making every introduction count – Have a short, natural pitch ready about who you are and how you help clients. Skip the generic “I’m a real estate agent.” Instead, use your elevator pitch to tell people what sets you apart.
3. Joining online real estate communities – Facebook groups, LinkedIn forums, and industry Slack channels can be great for networking and learning.
4. Volunteering and getting involved locally – Serving on local committees, attending charity events, or hosting community workshops can position you as a go-to expert.
5. Following up – The most common networking mistake? Not following up. A quick email or LinkedIn message can keep the connection alive.

Putting clients first

The best agents aren’t just salespeople. They’re trusted advisors and servants at heart. Focusing on service rather than just closing deals increases the chances of repeat business and glowing referrals.

• Listen actively – Ask open-ended questions and pay attention to your client’s concerns. Listen for ways you can help serve their needs.
• Communicate consistently – Keep buyers and sellers updated with clear, timely information. Try to stay positive on this one, even if you’re not getting the results you want. This, too, shall pass.
• Go above and beyond – Recommend local service providers, help with moving logistics, or provide homeownership tips after closing. Some agents might even go clean the property’s carpets at 2:00 AM if that’s what it takes to seal the deal.

The client experience starts long before a deal is signed and continues well after the keys are handed over. Every interaction should make clients feel valued.

• Personalize your interactions – Remember client names, preferences, and key details about their search.
• Be approachable – Make yourself available for questions and guide clients through every step.
• Provide valuable insights – Share local market trends, buying tips, and industry knowledge that empower your clients.

The road to success is paved with referrals

Referrals aren’t just about happy clients; they prove you’re trustworthy and know how to serve clients. Referrals can come from past clients, industry partners, friends, and even casual acquaintances who think of you when someone mentions buying or selling a home.

Most importantly, you want others to feel comfortable sending their clients or leads your way. If they know someone’s in good hands with you, you’re more likely to get the call.

Putting on your best face to earn referrals:

• Give value first – People want to work with someone they trust. Build relationships by offering market insights, introductions to service providers, or helpful advice without the sales pitch.
• Stay in touch – Send occasional home tips, local market updates, or holiday greetings. They won’t remember to refer you if they don’t hear from you.
• Ask, but do it at the right time and place– After a successful transaction, don’t be afraid to say: “I loved working with you! If you know anyone thinking about buying or selling, I’d be happy to help.”
• Express gratitude – A simple thank-you note or small gift for a referral goes a long way in strengthening relationships.

Building an online presence in the real estate business

Chances are, your broker already has a website, but what about you? Creating a website for your real estate business gives you a loudspeaker:

• Showcase your credentials, experience, and listings – Even if you’re just starting out, a personal website gives you a place to highlight your expertise, feature properties, and share market insights.
• Generate leads – With the right contact forms and calls to action, your website helps form a sales funnel to attract visitors who may turn into potential clients.
• Differentiate yourself – While many agents rely only on their brokerage’s website, having your own online space gives you more control over your brand and visibility.

How to start a real estate business website with AI

Building a real estate website doesn’t have to be complicated or expensive. 10Web’s AI Website Builder makes it easy for new agents to create a professional, high-performing website in just minutes.

• AI-powered design – Describe your business, and 10Web generates a website tailored to your needs.
• Mobile-friendly and fast – Your site will look great on any device and load quickly to keep visitors engaged.
• Showcase property listings – Easily add and update property pages with photos, details, and contact forms.
• Lead capture and CRM integration – Collect client inquiries and integrate with tools to manage follow-ups.
• SEO optimization – Get found on Google with built-in SEO features that help improve your search rankings.

Whether you want a personal portfolio site, a dedicated site for a property listing showcase, or a resource hub for buyers and sellers, 10Web gives you a professional online presence without the headaches of traditional web design.

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Leveraging social media for real estate business

While your website is your digital headquarters, social media is where you actively engage with potential clients (and nudge them towards your website). The right strategy and tools can help you build trust, expand your reach, and generate leads.

Where should you post?

• Facebook – Great for local networking, listing promotions, and community engagement.
• Instagram – Perfect for showcasing homes with high-quality images, video tours, and behind-the-scenes stories.
• LinkedIn – Best for building credibility, networking with professionals, and attracting referral business.
• TikTok and  YouTube – Short video walkthroughs and real estate tips can attract serious attention if you’re comfortable on camera.

Social media strategies to start a real estate business

• Share valuable content – Market updates, home-buying tips, and success stories work better than just posting listings.
• Engage consistently – Reply to comments, answer questions, and be active in local groups to tap into huge networking potential.
• Use video – Virtual tours, home tips, and “day in the life” content to help you stand out.
• Leverage paid ads – Facebook and Instagram ads can help target local buyers and sellers.

Meredith Fogle of the So You Want to Be a Real Estate Agent podcast suggests leveraging your personal profile to build on your existing network. She says that slowly transitioning to a mix of personal and professional posts can help get leads from social media. Don’t just post your listings, though. Know who you’re talking to to provide value to your readers, and you’ll gain more reach on social platforms.

The right tools to start a real estate business

Let’s keep it real. Starting a real estate business isn’t just about showing homes and cashing commission checks. From listing appointments to closings, real estate transactions have more moving parts than a fine Swiss timepiece. If you don’t stay organized, essential details are bound to slip through the cracks. With the right tools, you’ll have more time to spend prospecting and following up with leads.

1. Get your client management game on point

Real estate is all about relationships, which means keeping track of leads and past clients is a must. A good customer relationship management (CRM) system will help you with prospecting and follow up:

• Track conversations so you’re not that agent who forgets a client’s name.
• Set reminders for follow-ups so you don’t inadvertently ghost potential clients.
• Organize your pipeline so you always know where each deal stands.

Don’t want to splurge on fancy software just yet? Start with a basic spreadsheet. Anything is better than relying on memory when there’s only so much mental real estate to go around.

2. Manage your time wisely

Your schedule will fill up quickly, especially if you juggle showings, lead generation, paperwork, and follow-ups. Consistency is key for maintaining momentum without pulling all-nighters.

• Block off time for client calls, marketing, and admin work so you’re not bouncing between tasks all day.
• Prioritize revenue-generating activities like showings and follow-ups instead of getting lost in busy work.
• Set boundaries. Real estate can be a 24/7 business, but burnout won’t do you any favors.

3. Keep the finances in check

Many new agents don’t track their finances properly, leading to the classic “Wait, where did all my commission money go?” moment. Avoid that by:

• Using accounting software like QuickBooks or a simple spreadsheet to track income and expenses.
• Setting aside money for taxes so you’re not scrambling when tax season hits.
• Tracking expenses like marketing costs, open house supplies, and gas mileage—it’ll save you at tax time.

And if all else fails, at least act like you’ve got it together. Fake it until you make it, right? You’ll probably be more convincing when you identify the right tools for your style. The trick is to actually use them.

How to scale and grow a real estate business

Once you’ve got a few years of clients and closings under your belt, the next challenge is growing beyond being a one-person operation. This is the point where many real estate agents start to chafe at broker fees.

Whether that means striking out on your own, hiring a team, expanding into new markets, or adding investment opportunities, scaling strategically is key to long-term success. Luckily, there are plenty of options for real estate businesses.

Hitting your stride with the right real estate business model

Not all real estate businesses grow in the same way. Some agents build a team, others start a boutique brokerage, and some expand into property management or real estate investing. Consider what aligns with your strengths:

• Building a real estate team – If you love mentoring, start bringing on junior agents and support staff to help manage leads and transactions.
• Starting a brokerage – If you’re ready for full independence, running your own firm allows you to recruit agents and set your own commission structures.
• Adding property management services – Managing rentals can create steady, recurring income instead of relying solely on commissions.
• Investing in real estate – Buying and managing properties yourself can help you build long-term wealth while still working as an agent or broker.

Expanding your team while keeping your edge

Growth shouldn’t mean sacrificing quality if you decide to hire agents or staff. A strong team can help increase your volume while maintaining great client service, but only if you hire the right people.

• Where are you trying to go with this? – Do you want a boutique agency, a full-fledged brokerage firm, or just more support for your career?
• Recruit based on skills and values – Experience is great, but a strong work ethic and cultural fit matter just as much.
• Create clear roles and responsibilities – Agents, transaction coordinators, and assistants should have defined tasks to keep things running smoothly.
• Invest in training and mentorship – A well-trained team delivers consistent, high-quality service, which helps protect your brand reputation.

Know when to hold and when to fold

Scaling too fast can cause chaos while waiting too long can limit your income potential. Look for signs that it’s time to expand:

• How’s the financial outlook? Do you have a handle on expenses and income?
• You’re turning away business because you can’t handle the workload.
• You have a consistent pipeline of deals, not just seasonal spikes.
• You see clear market opportunities, like a growing neighborhood or demand for property management services.

Democracy or monarchy?

Even if you’re just starting to expand your real estate business, you may want to consider forming a board of directors to maintain some objectivity on growth decisions.

Making it a group effort helps you when you can’t see the forest for the trees. Fresh eyes can help you:

• Make the transition from solopreneur to a structured business
• Identify weaknesses and pitfalls
• Figure out who to hire and when to do it
• Reduce impulsive decisions
• Force accountability – you’ll need to defend and explain your decisions

How to start a real estate business the smart way

There’s no shortcut to obtaining your real estate license or building the rapport and network you’ll need when learning how to start a real estate business. However, you can start laying the foundation for your career in real estate by establishing some authority and credibility through an online presence. You know what that means. It’s time to fire up your LinkedIn profile and create a website.

Check out how fast the AI Website Builder can get you set up with a new real estate website, and then use it to show off all your new pre-licensing knowledge as you learn. The gray beards at your future broker’s office won’t remember half of it, and you’ll keep them on their toes. Maybe they’ll send a lead your way!

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