How to Start a Real Estate Business in 2025: Step by Step Guide
Key Takeaways: How to Start a Real Estate Business
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- Get licensed early – Meeting legal requirements and affiliating with a broker are the first steps to start working as an agent.
- Write a clear business plan – Define your niche, target customers, and financial goals to avoid wasted time and missed opportunities.
- Focus your marketing – Use tools like Google Business, social media, and a simple website to reach your ideal clients where they are.
- Choose the right business structure – Set up a sole proprietorship, LLC, or partnership to protect assets and stay organized.
- Track progress monthly – Measure your goals, review finances, and adjust your strategy to stay profitable and grow.
Starting your own real estate business can be exciting, but it’s not easy. Most people want more freedom, more income, or the chance to build something of their own. But according to the National Association of Realtors (NAR), 75% of new agents fail within their first year, usually because they jump in without a clear plan.
If you’re serious about building a real estate business that lasts, you need more than just a license. You need a solid foundation, a clear niche, and the tools to grow and stand out in a competitive market. In this guide, you’ll learn how to start a real estate business step by step, from choosing your structure and getting licensed to building your brand, finding clients, and staying profitable over time.
Table of Contents
How to Start a Real Estate Business
If you’re ready to start your own real estate business, this is where it begins. You want more control over your time, more income potential, and the chance to grow something that’s yours. This section gives you the exact steps to get started the right way, so you don’t waste time, miss opportunities, or become part of the 75% who quit in the first year.
Step 1: Get Licensed and Understand Legal Requirements
Before you can start your real estate business, you need a license. This isn’t just a formality, it’s what allows you to legally help clients, earn commissions, and build a reputation in the industry. Getting licensed is a straightforward process if you know what to expect.
Here’s what you need to do:
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- Complete your state’s required pre-licensing education. Each state sets its own number of classroom hours, usually between 40 and 180. These courses cover real estate law, contracts, ethics, and property basics.
- Pass the real estate licensing exam. This test usually has two parts: national real estate principles and state-specific laws. Use prep courses or study guides to feel confident on exam day.
- Submit your license application. You’ll send your exam results, education certificate, and application fee to your state’s real estate commission. Most states also require fingerprinting and a background check.
- Choose a broker to work under. In most states, new agents must affiliate with a licensed real estate broker before they can start working with clients.
- Understand broker license requirements. If your long-term goal is to run your own business or hire agents, you’ll eventually need a broker’s license. This requires experience as an agent, more education, and passing a broker exam.
Getting licensed is your entry point into real estate. Take it seriously, get it done right, and you’ll be ready to move on to building your business.
Step 2: Write a Business Plan and Choose a Niche
A real estate business plan isn’t just a formality, it’s your map. It helps you define your goals, choose the right niche, and avoid common mistakes that drain time and money. But before you write anything, you need to do some local market research. This step helps you understand the people in your area: who’s buying, who’s selling, and what types of properties are in demand.
To do the research, you can start with public data from the U.S. Census, which shows population trends, housing demand, and income levels in your area. You can also browse current listings and market reports on sites like Realtor.com and Zillow to see pricing trends, average days on market, and what buyers are searching for.
Once you understand your market, you’ll be ready to write a business plan that covers:
- Your target customer: Are you working with first-time buyers, growing families, real estate investors, or commercial clients?
- Your niche: Will you specialize in residential homes, vacation properties, luxury estates, or rental management?
- Your startup and operating costs: Include licensing fees, marketing budget, tools like a CRM, and insurance.
- Your revenue and growth goals: Set financial targets for the first year, and map out goals for 3–5 years.
- Your legal structure: Choose whether to operate as a sole proprietor, LLC, or partnership based on your goals and risk level.
The clearer your plan, the easier it will be to stay focused, attract the right clients, and grow a real estate business that actually works.
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Pro Tip: Before starting, make sure you have the funds.
Expect to spend at least $10,000 to launch an independent real estate business or brokerage.
Also, have enough savings to cover your personal expenses for at least 3–6 months while your business gets off the ground.
Step 3: Create a Marketing Plan
Now that you’ve built your brand and written your business plan, it’s time to start reaching people. A solid marketing plan helps you attract the right clients, stay visible in your community, and show that you’re ready to help. It’s not about doing everything, it’s about doing the right things consistently.
To start your marketing plan, you need to research your ideal client and figure out the best way to reach them. Think about who they are, what problems they’re trying to solve, and where they spend their time. Are they first-time homebuyers scrolling Instagram? Busy professionals searching on Google? Families who respond to neighborhood mailers?
Once you know who you’re talking to, you can choose the right tools to connect with them. Here are some of the most common places real estate professionals use to reach potential clients:
- Google Business Profile: Helps you show up in local searches like “real estate agent near me.” Add photos, reviews, service areas, and contact info.
- Social Media (Facebook, Instagram, LinkedIn): Great for sharing listings, posting tips, and staying visible in your local market. Use hashtags and location tags to reach more people.
- Your Website: Acts as your digital home base. Include a contact form, listings, testimonials, and helpful resources for buyers and sellers.
- Email Marketing: Send monthly updates, new listings, or quick guides to stay in touch with your audience and build long-term relationships.
- Local SEO and Blog Posts: Write simple, helpful content about your area, like “Best Neighborhoods in [City]” or “What to Know Before Buying a Home in [City].”
Yard Signs and Flyers: Still effective, especially in neighborhoods where people are already thinking about buying or selling. - Open Houses and Local Events: A chance to meet potential clients face-to-face and start building trust in person.
You don’t need to be on every platform—just focus on the ones your ideal clients already use.
Step 4: Choose a Business Structure and Legal Entity
Once you’ve defined your niche and written your business plan, the next step is to make your business official. Choosing the right legal structure protects you, keeps your finances organized, and helps you stay compliant with state and federal laws.
Most real estate professionals choose one of the following structures:
- Sole Proprietorship: Easy to set up, but you’re personally liable for debts and legal issues.
- Limited Liability Company (LLC): A popular choice for small businesses. It protects your personal assets and allows flexible tax options.
- Partnership: If you’re launching the business with another agent or investor, this structure shares responsibility and profits.
- Corporation: More complex and costly, but offers strong liability protection and benefits if you plan to grow or seek investors.
You’ll also need to:
- Register your business with the state
- Apply for an EIN (Employer Identification Number) from the IRS for tax purposes
- Open a separate business bank account to keep your finances clean and trackable
The structure you choose affects how you’re taxed, how you pay yourself, and how you scale. If you’re unsure, talk to an accountant or business attorney to choose what’s best for your goals.
Step 5: Set Up Your Office
As a real estate agent, having a professional space to meet with clients can make a big difference. Whether you’re working from home, renting a co-working space, or opening a small office, your setup should reflect the level of service you plan to provide.
Start by thinking about what kind of work environment supports your goals. If you’re just starting out and working solo, a home office with a clean background for virtual meetings might be enough. But if you plan to bring on agents or meet with high-end clients, a small, private office or storefront in a visible location can help build trust and credibility.
Here’s what to consider when setting up your real estate office:
- Location: Choose a space that’s easy for clients to find and has parking nearby.
- Workspace: Set up a quiet, organized area for calls, contracts, and virtual meetings.
- Client area: Have a clean, comfortable space where clients can sit and talk without distractions.
- Technology: Invest in a reliable laptop, printer, phone system, and high-speed internet.
- Software: Use tools like a CRM, e-signature platform, and cloud storage to stay efficient and professional.
Pro Tip: Choose a good CRM from the start.
A reliable Customer Relationship Management (CRM) system helps you stay organized, follow up on leads.
It keeps all your contacts, notes, and follow-ups in one place, so you never miss a meeting, forget a name, or lose track of a deal.
Step 6: Build a Your Brand
Your brand is how people remember and trust you. Before someone contacts you, they’ve probably already seen your name, your website, or your social media. That’s why it’s important to build a brand that looks professional and makes people feel confident about working with you.
To build your brand:
- Pick a clear, memorable name. Choose something easy to pronounce, spell, and remember. Avoid complicated words or long phrases.
- Design a simple, clean logo. Something that looks professional and works well online and in print.
- Choose colors and fonts that match your style. Keep them consistent across your website, business cards, and social media profiles.
- Write a short, friendly bio. Let people know who you are, what you do, and why they should trust you.
- Get professional photos. A high-quality headshot makes a big difference in how people perceive you online.
Once you have these basics, apply them everywhere, your website, email signature, social pages, and signs.
Step 7: Build a Professional Website and Online Presence
Once your brand is in place, your next step is to bring it online. Your website is often the first place people will go to learn more about you. It should look polished, load quickly, and make it easy for visitors to take action, whether that’s contacting you, viewing listings, or signing up for updates.
Here’s what your online presence should include:
- A clean, mobile-friendly website: Your site should work well on phones and tablets. Keep the layout simple, with clear navigation and fast loading times.
- Google Business Profile: Set this up with your business name, contact info, photos, and service area. Ask happy clients to leave reviews.
- Social media profiles: Claim your handles on Facebook, Instagram, and LinkedIn. Use your brand colors, logo, and bio so everything feels consistent.
Once your online presence is set, you’re ready to start connecting with clients and building momentum.
Step 8: Network and Grow Your Business
Real estate is a relationship business. The more people you know, and the more people who know and trust you, the faster your business can grow. Networking helps you build credibility, stay informed, and open doors to new opportunities. Whether you’re just starting out or trying to scale, the right connections can make all the difference.
Here are four smart ways to start growing your network:
- Join professional real estate associations: Become a member of groups like the National Association of Realtors (NAR) or your local real estate board. These organizations offer training, networking events, and access to tools that help you stay competitive.
- Join your local Chamber of Commerce: Being part of your Chamber connects you with local business owners, city leaders, and other professionals. It’s a great way to stay active in the community and build referral relationships outside of real estate.
- Build partnerships with industry professionals: Connect with mortgage brokers, home inspectors, contractors, photographers, and title agents. These partnerships can lead to steady referrals and give your clients a smoother experience.
- Encourage client referrals and reviews: Ask happy clients to leave a review on Google or Zillow, and to refer you to friends and family. A personal recommendation is one of the most powerful ways to earn new business.
Strong relationships are one of the most reliable ways to grow. When people trust you, they’re more likely to send business your way, and stick with you for the long run.
Step 9: Establish client relationships
Clients aren’t just looking for someone to open doors, they want someone they can rely on, especially during big financial decisions. Building strong client relationships not only leads to repeat business, it also drives referrals and long-term growth.
From your first conversation to the final closing and beyond, your job is to make people feel supported, informed, and confident. Here’s how to do that every step of the way:
- Communicate Clearly and Promptly: Respond quickly to calls, texts, and emails. Set clear expectations, and keep clients updated so they never feel left in the dark.
- Guide Clients Through the Process: Real estate can be confusing. Break things down simply and walk your clients through each step—especially if they’re buying or selling for the first time.
- Follow Up After the Transaction: The relationship doesn’t end at closing. Check in after the move, send a thank-you note, or offer helpful resources. These small touches show you care and help keep your name top of mind.
- Handle Issues with Professionalism: Deals don’t always go smoothly. Stay calm under pressure, take responsibility when needed, and focus on solutions. Clients will remember how you made them feel, even during the tough parts.
Strong client relationships are your best marketing tool.
Step 10: Track Your Progress and Improve Over Time
Once your real estate business is up and running, your next job is to keep it growing, and that means tracking your results. Without data, it’s hard to know what’s working and what needs to change. Smart agents treat their business like a business. They measure performance, look at trends, and adjust their strategy when needed.
Here’s how you can stay on top of your progress:
- Set clear, trackable goals: Break down your income goals into weekly or monthly targets. Track how many calls, meetings, listings, and closings it takes to hit those numbers.
- Review your marketing performance: Look at website traffic, social media engagement, email open rates, and ad results to see what’s bringing in leads.
- Monitor your finances: Track income and expenses, set aside money for taxes, and review your budget monthly to stay profitable.
Ask for client feedback: After each deal, ask clients how the process went and what you could do better. This gives you insight and shows you care.
Pro Tip: Set a reminder to review your business once a month.
Take an hour to look at your numbers, update your goals.
Making small tweaks every month can lead to big results.
Things to Consider Before Starting a Real STate Business
Starting your own real estate business can be rewarding—but only if you’re prepared for the challenges that come with it. Many people jump in expecting quick results, only to burn out when things move slower than expected. Before you dive in, take the time to look at the bigger picture and think through what this career really requires.
Here are important things to consider before getting started:
- Consider the situation in your market: Real estate is hyper-local. Study your area to understand housing supply, demand, pricing trends, and who’s buying or selling. If the market is saturated with agents or sales are slow, it will be harder to get started..
- Selling your first house can take some time: It’s common for new agents to go several months without a sale.Make sure you have enough savings to stay afloat during this ramp-up period.
- You are your own business: As a real estate agent, you’re not just selling homes, you’re running a full business. That means managing marketing, bookkeeping, branding, and customer service.
- Your income will be inconsistent at first: Commissions can be high, but they don’t come on a set schedule. Some months may be great; others may be dry. Budget carefully, save during the busy times, and plan for slower seasons.
- You’ll need to invest upfront: Licensing, courses, marketing materials, software, and setting up your office all cost money. Expect to spend at least $10,000 if you’re launching as an independent agent or opening your own brokerage.
- Time management is critical: You’ll juggle appointments, marketing tasks, paperwork, and follow-ups daily. Without structure, it’s easy to get overwhelmed.
- You’ll constantly be learning: The market changes. Laws change. Technology changes. The most successful real estate professionals never stop learning. Be ready to adapt, improve, and invest in your own growth along the way.
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Build a Real Estate Business That Lasts
Starting a real estate business is more than passing a test or printing business cards—it’s a long-term commitment to growth, service, and strategy. You’ve now seen what it really takes: getting licensed, choosing the right niche, building a brand, setting up operations, and staying consistent with marketing, networking, and follow-up.
Yes, the first few months can feel slow. But if you plan well, invest wisely, and focus on relationships, you can build a business that not only survives—but thrives. The agents who win are the ones who treat this like a business from day one. If that’s you, you’re already on the right track.
Now take the next step. Start with one task today, and build from there.
Frequently Asked Questions
How much does it cost to start a real estate business?
Starting a real estate business typically costs $2,000 to $10,000 or more, depending on how independent you want to be.
Here’s a quick breakdown:
- Licensing and education: $500–$1,200
- MLS and association fees: $1,000–$2,000/year
- Marketing materials and website: $500–$2,000
- Office setup and software: $1,000–$3,000
If you’re opening your own brokerage, costs will be much higher due to legal, staffing, and branding needs. Also, set aside savings to cover 3–6 months of personal expenses while your business gets going.
Do I need a broker’s license to run my own business?
Yes, if you want to work independently or manage other agents, you need a broker’s license in most states.
Here’s what that usually involves:
- Holding a real estate license for 1–3 years
- Completing additional education hours (varies by state)
- Passing a broker’s exam
If you don’t have a broker’s license yet, you’ll need to affiliate with a licensed broker to start helping clients and earning commissions.
How long does it take to become a licensed real estate agent?
It usually takes 2 to 6 months to become licensed, depending on your state and how quickly you complete the steps.
You’ll need to:
- Finish your pre-licensing education (40–180 hours depending on the state)
- Pass the real estate exam
- Submit your application, background check, and fees
- Affiliate with a broker
Some people do it in just a couple of months, while others take longer if they’re working or studying part-time.
Can I start part-time as a real estate agent?
Yes, many agents start part-time while working another job or raising a family. Just know that real estate can be demanding, clients may need you on evenings and weekends. If you’re not available, it may slow down your momentum.
What’s the hardest part of starting a real estate business?
The hardest part is usually staying consistent during slow months. It takes time to build a client base, and you don’t get paid until deals close. That’s why it’s important to:
- Have savings
- Market yourself consistently
- Focus on building relationships and referrals
What tools do I need to run my business?
To stay organized and professional, you’ll need:
- A CRM to track leads and clients
- E-signature tools like DocuSign or Dotloop
- A clean website with your contact info and listings
- Marketing tools (email service, social media, print materials)
These tools help you save time, stay responsive, and deliver a better experience to clients.
Edgardo Ocampo
Edgardo is a digital marketing strategist with over 15 years of experience in SEO, paid advertising, and content writing. He helps entrepreneurs grow service-based businesses through smart, practical marketing strategies that get results.
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