How to Start a Real Estate Business In 2025?

So, you want to get into real estate? Good choice! Real estate is a crazy and profitable industry, and for good reason. According to Statista, the US real estate market alone is going to grow 3.34% between 2024 and 2029 to a whopping $155.60 trillion by 2029.

If you want to know how to start a real estate business, whether as an agent, investor or developer, this guide will walk you through the steps to build a successful business in this growing industry.

What Is A Real Estate Business?

A real estate business is anything to do with property. Buying and selling houses, renting out apartments, managing properties for others, building new homes or office buildings from the ground up. In short, we can say that if it involves land or buildings, then it’s probably real estate.

How Profitable Is A Real Estate Business?

A real estate business can be super profitable. Take real estate agents, for example. If the average US home price is $357,469 and they charge a 6% commission, then that’s $21,448 per sale.

But things like how many homes they actually sell, the costs of running their business (marketing and office space), and the overall health of the housing market all come into play.

It’s the same for other areas of real estate. Property managers earn a steady income from rent, but that income is balanced by expenses like maintenance and vacancies.

Developers take on even more risk, investing heavily in projects that could take years to pay off.

The bottom line? Real estate can be very profitable, but it’s not a guaranteed path to riches. Success often comes down to if you tick all the boxes of starting a successful real estate business.

How to Start a Real Estate Business

Step #01 Decide on Your Real Estate Business Model

First things first, you need to decide what type of real estate you want to focus on. Real estate isn’t a one-size-fits-all industry – it’s diverse, and there are plenty of opportunities to match your skills, interests, and market demand.

Here are some options to consider:

• Real Estate Agent:

If you like working with people and have good communication skills, being a real estate agent might be the way to go. Agents help clients buy, sell, or rent properties and get paid per transaction. This requires a real estate license, but it’s a great career for those who love building relationships and negotiating deals.

Important: According to NAR, the estimated total pay for a real estate agent is $204,940 per year in the United States, with an average salary of $120,164 per year.

• Real Estate Wholesaler:

Wholesaling is good for those who are good at finding deals. As a wholesaler your job is to find properties below market value (often distressed properties), get them under contract and sell the contract to an investor for a profit. It’s a low-risk way to get into real estate since you don’t have to own the properties you work with.

Important: California and Texas are two of the best states for real estate wholesale.

• Real Estate Flipper:

Have a knack for renovations, or good at spotting hidden gems? Flipping involves buying homes that need work, fixing them up, and selling them for a profit. It’s a fast-paced option that requires upfront capital and market knowledge, but it can be very profitable if done right.

Important: In 2024, the typical gross profit from flipping a house was approximately $73,500.

• Real Estate Developer:

If you think big, development might be your calling. Developers buy land or existing properties, handle construction or renovations, and create something new – residential communities, commercial spaces, or even luxury condos. It’s a high-investment model but can be very profitable when successful.

Important: As per Zippia, the most common degree for Real Estate Developers is a bachelor’s degree, with 71% of real estate developers earning that degree.

• Real Estate Photographer:

Like photography? With the rise of online property listings, high-quality images are in demand. Real estate photographers specialize in taking photos of homes and properties to help agents and sellers attract buyers. This is a creative way to get into real estate without directly managing or selling properties.

Important: The average cost for residential real estate listing photos is $230.

Step #02 Research and Understand the Real Estate Market

Before you get into real estate, you need to understand the market you’re getting into. This step will help you spot opportunities, avoid pitfalls, and tailor your business to real-world needs.

Here’s how to do your research:

Learn About Your Target Market:

Who will you be serving? Are you serving:

• First-time homebuyers
• Seasoned investors
• Renters
• Commercial property owners

Knowing their needs, preferences, and challenges will guide your services and marketing.

Study Local Trends:

Real estate markets vary by location. Look at property values, neighborhood growth, average rental rates, and buyer demand. Tools like Zillow, Realtor.com, and local MLS (Multiple Listing Service) platforms can help you gather data.

Analyze Your Competition:

Take note of other real estate professionals and businesses in your area. Ask yourself:

• What services do they offer?
• What are their strengths and weaknesses?

Knowing your competition will help you spot gaps in the market and position yourself.

Research Real Estate Laws and Regulations:

Every state has its own laws for buying, selling, and managing properties. Get to know these laws to avoid legal headaches later on.

Know the Risks:

Real estate can be profitable, but it’s not risk-free. Learn about market volatility, investment risks, and niche-specific challenges.

Pro Tip: Attend local real estate events, join industry groups, or network with professionals to get first-hand information about the market. The more you know, the better you’ll be prepared to navigate your business.

Step #03 Write a Comprehensive Business Plan

A business plan is essential for any real estate business. It’s not just a document – it’s your roadmap to success to keep you organized, focused, and prepared for the challenges.

What is a Business Plan?

A business plan is a comprehensive document that details your business’s objectives, strategies, target market, and financial forecasts. It explains how your business will work, grow, and achieve its objectives.

Why Write a Business Plan for a Real Estate Business?

In real estate, a well-written business plan is essential for several reasons:

• To define what you want to achieve and how you will get there.
• To show potential investors and partners you have done your homework.
• It helps you stay focused, making sure your daily tasks support your long-term objectives.
• A business plan isn’t static – it evolves as the market and your business grows.

How to Write a Business Plan for Real Estate?

According to the National Association of Realtors (NAR) these are the components of a real estate business plan:

• Mission Statement:

Clarify your mission and the value you intend to offer. For instance, “Our goal is to make the home-buying process seamless for first-time buyers while providing outstanding customer service.”

• SWOT Analysis:

Assess your business’s strengths, weaknesses, opportunities, and threats. This will help you leverage what you do well and fix what’s not.

• Strengths: Your skills, experience, or network.
• Weaknesses: Limited capital or lack of industry experience.
• Opportunities: Growing local housing demand or untapped markets.
• Threats: Market downturns or stiff competition.

• Specific Goals:

Write measurable and action-oriented goals. Examples:

• Closing 20 deals in your first year.
• Generating $1 million in sales.
• Expanding your social media following to 10,000.

• Strategic Plan:

Describe how you will achieve your goals. For instance, digital marketing can be used to get leads, network with local businesses, or partner with lenders.

• Time Frame:

Set deadlines for your goals and milestones. This will keep you accountable and measure progress.

• Target Audience:

As we already discussed above, identify who you want to serve. Are they first-time buyers, renters, investors, or commercial property owners? Knowing your audience will help you tailor your services and marketing.

• Systems and Processes:

Describe the tools and workflows you will use to run your business, such as a CRM for leads, online listing platforms, or automated marketing tools.

Pro Tip: Your business plan doesn’t have to be perfect on the first draft. Treat it as a living document that you can update as your business grows and the market changes.

Step #04 Set Financial Goals and Budget

Financial planning is key to any successful real estate business. Setting financial goals and a budget will help you manage your resources, track progress, and stay financially stable as your business grows.

Steps to Set Financial Goals and Create a Budget

1- Define Your Income Goals:

How much do you want to earn in your first year? Break it down into monthly or quarterly targets. For example, if your goal is $100,000 per year, you’ll need to earn around $8,333 per month.

2- Estimate Startup Costs:

Identify one-time expenses to get your business off the ground. Common startup costs include:

• Real estate license fees.
• Association dues (e.g., NAR membership).
• Office space or coworking memberships.
• Marketing materials (business cards, brochures, etc.).
• Technology tools like CRM software and a website.

3- Calculate Operating Expenses:

Account for recurring expenses needed to keep your business running. These may include:

• Marketing and advertising costs.
• Gas and travel expenses for property showings.
• Subscription fees for MLS and other tools.
• Utilities and office supplies.

4- Plan for Taxes:

As a real estate professional, you’ll likely be an independent contractor or business owner. Set aside a portion of your income for taxes.

5- Create a Reserve Fund:

Real estate income can be unpredictable, especially in the early stages. Build a reserve fund to cover 3-6 months of expenses in case of slow periods.

6- Track and Adjust:

Use financial tracking tools or software to monitor your income and expenses. Review your budget regularly and adjust as needed to stay on track with your goals.

Important: As per the National Association of REALTORS® 2021 Member Profile, median business expenses for realtors in 2020 were around $5,330. 

Step #05 Obtain Necessary Licenses and Certifications

To be in the real estate business, you need the right licenses and certifications. This is a must so you comply with state regulations and build credibility with clients and other industry professionals.

Why Licenses and Certifications Are Important?

Legal Compliance: Operating without the proper licenses can result in fines, legal issues, or even being banned from the industry.

Credibility: A licensed professional is more trustworthy in the eyes of clients and business partners.

Market Access: Many real estate tools, such as MLS platforms, are only accessible to licensed agents or brokers.

Licenses and Certifications You May Need

Real Estate License:

A real estate license is mandatory for agents and brokers. Requirements vary by state but typically include:

• Completing pre-licensing coursework.
• Passing a state licensing exam.
• Submitting an application and paying a fee.

Example: In California, you need 135 hours of pre-licensing education before you can take the exam.

Broker’s License:

If you plan to open your own brokerage, you’ll need a broker’s license. This usually requires more education and experience as a licensed agent.

Business License:

Depending on your area, you may be required to obtain a local business license to legally run your real estate business.

Specialized Certifications:

Certifications enhance your expertise and credibility in niche markets. Some popular certifications include:

• Certified Residential Specialist (CRS): For expertise in residential sales.
• Accredited Buyer’s Representative (ABR): Specializing in representing buyers.
• Certified Commercial Investment Member (CCIM): For commercial real estate professionals.
• Green Designation: For sustainable and energy-efficient real estate practices.

How to Get Started?

• Research State Regulations: Every state has its own licensing authority. Visit your state’s real estate commission website to find detailed requirements.

• Enroll in Pre-Licensing Courses: Take approved courses in-person or online. These courses cover contracts, ethics, property laws, etc.

• Pass the Exam: Study hard and take practice exams to prepare for the licensing exam.

• Apply for Your License: Submit your exam results, complete your application, and pay any fees required by your state.

• Join a Brokerage (if applicable): Many states require new agents to work under a licensed broker to gain experience.

Pro Tip: Stay updated on continuing education requirements. Most states require license renewals every few years, which often involves taking additional courses.

Step #06 Build a Professional Network

In real estate, it’s all about the relationships. A professional network not only brings you new clients but also connects you with industry people who can support your business and growth.

Here’s How to Build a Professional Network

#01 Attend Industry Events:

Real estate conferences, trade shows, and local meetups are great places to meet like-minded people. These events allow you to:

• Learn from experienced agents, brokers, and developers.
• Connect with potential mentors.
• Stay updated on industry trends and best practices.

Pro Tip: Always bring business cards and be ready to introduce yourself confidently.

#02 Join Professional Associations:

Being a member of organizations like the National Association of Realtors (NAR) or local real estate boards gives you access to resources, training, and networking opportunities. They often host events and provide certifications to increase your credibility.

#03 Build Relationships with Vendors and Contractors:

Forge strong connections with key service providers like:

• Home Inspectors.
• Mortgage Brokers.
• Real Estate Attorneys.
• Contractors and Landscapers.

These partnerships can help your clients find reliable professionals, making you their go-to resource for all things real estate.

#04 Do Your Networking on Social Media:

Platforms like LinkedIn, Instagram, and Facebook are great places to network. Here’s how:

• Join real estate groups and forums to connect with peers.
• Share market insights, listings, and client success stories to build your brand.
• Engage with others’ content to foster relationships and visibility.

Pro Tip: Use hashtags like #RealEstateTips or #HomeBuyingAdvice to expand your reach.

#05 Prioritize Clients Above Commission:

Networking isn’t just about other professionals—your clients are part of your network. Treat each client like a priority, with exceptional service and genuine care. Happy clients become lifelong advocates, referring you to their friends and family.

#06 Continuing Education and Professional Development:

Keep learning and upskill to stay ahead of the competition. Sign up for workshops, seminars, or online courses to stay ahead of industry trends. An informed agent is more attractive to clients and others.

#07 Stay Organized and Time-Efficient:

Networking can be time-consuming, so it’s crucial to stay organized:

• Use a CRM tool to track contacts and follow-ups.
• Schedule regular check-ins with your network.
• Reserve specific time each week for networking opportunities.

Pro Tip: Networking is a two-way street. Offer value to your connections by sharing insights, referrals, or collaboration opportunities. When you’re known for helping others, your network will grow organically.

Step #07 Invest in a Customer Relationship Management (CRM) Tool

A CRM is the backbone of a successful real estate business. It helps you manage leads, stay organized, and nurture client relationships, all while saving time and increasing productivity.

What is a Real Estate CRM?

A Real Estate Customer Relationship Management (CRM) tool is a software solution that enables real estate professionals to organize and manage their interactions with clients, leads, and prospects. It consolidates all your contacts, tracks communication history, and automates tasks like follow-ups and scheduling so no opportunity falls through the cracks.

Why Do You Need a CRM?

• All your contacts are in one place.
• Personalized communication with clients.
• Automates tasks so you can focus on high-priority activities.
• You get more organized as your client base grows.
• Team collaboration if you work with a team of agents or assistants.

Important: Businesses using CRM experience a 29% boost in sales, a 34% improvement in sales productivity, and a 42% enhancement in sales forecast accuracy, according to Salesforce.

Best Real Estate CRMs

Here’s a look at some of the top CRM tools for real estate professionals:

• HubSpot CRM
• Follow Up Boss
• kvCORE
• LionDesk
• Real Geeks

Pro Tip: When choosing a CRM, consider your specific business needs, the size of your team, and your budget. Take advantage of free trials to evaluate the software and confirm it meets your needs before making a commitment.

Step #08 Develop a Real Estate Marketing Strategy

A real estate marketing strategy is a broad plan that outlines how you’ll market your business, attract clients, and generate leads. It uses both online and offline channels to reach your target market.

How to Develop a Winning Real Estate Marketing Strategy?

• Define Your Target Audience:

Who are you trying to reach—first time homebuyers, luxury property investors, renters or sellers? Market to their needs, preferences, and challenges.

• Leverage Social Media Marketing:

Social media platforms are powerful tools for real estate marketing.

• Instagram: Share listing photos and videos. Use Reels and Stories for behind-the-scenes content.
• Facebook: Post listings and host virtual open houses and community content.
• LinkedIn: Network with other professionals and share market information.

Pro Tip: Use targeted ads to reach specific demographics and locations.

• Create a Professional Website:

Your website is the foundation of your online presence. We’ll get into this in the next step. For now, remember:

• Include features like listings, contact information, client testimonials, and a blog.
• Optimize for SEO so your site ranks high in search results.
• Mobile optimization is a must as many clients are on their phones.

• Use Content Marketing:

Offer valuable insights to your audience by creating content that is both informative and engaging.

• Write blog posts about home-buying tips, market trends, or local neighborhood guides.
• Create video content like property tours, FAQs, or market updates.
• Offer free resources like e-books or checklists to capture leads.

• Invest in Paid Advertising:

Paid advertising is an effective way to quickly connect with your target audience.

• Use Google Ads to show up at the top of search results for terms like “homes for sale near me.”
• Run Facebook or Instagram ads for local buyers and sellers.
• Use remarketing campaigns to re-engage users who visited your site but didn’t take action.

• Focus on Local Marketing:

Real estate is location-based. Get visible in your community through:

• Sponsoring local events or charities.
• Hosting free workshops on home buying or selling.
• Partner with other local businesses for co-promotions.

• Use Email Marketing:

Stay in touch with your leads and clients by building an email list.

• Send out newsletters with market updates, new listings, and tips.
• Automate follow-ups and nurture campaigns for prospects.

• Get Creative with Visual Content:

• Use high-quality photos and videos to make your listings stand out.
• Offer 3D virtual tours or drone footage for a unique view of properties.

Pro Tip: Staging your properties well can make a significant difference in attracting buyers.

• Encourage Online Reviews and Testimonials:

Positive reviews build trust and credibility. Ask satisfied clients to leave reviews on platforms like Google, Yelp, or Zillow.

• Track and Analyze Your Results:

• Leverage analytics tools to monitor and evaluate the success of your campaigns.
• Identify which strategies generate the most leads and optimize accordingly.
• Consistently evaluate your marketing plan to ensure it remains in line with your business objectives.

Pro Tip: Your marketing strategy should evolve with the market and technology trends. Keep yourself informed about the newest tools and strategies to stay ahead of the competition.

Step #09 Launch a Professional Website

In today’s world, your website is often the first impression potential clients have of your real estate business. A professional website can showcase your expertise, build trust, and attract buyers and sellers in your market.

Why Is a Website Essential for Real Estate Professionals?

According to the National Association of Realtors (NAR), 43% of homebuyers in 2024 started their home-buying journey online by searching for properties. This is why a website is so important in the home-buying process. Your website isn’t just a digital brochure – it’s a platform to engage leads, provide valuable information, and showcase your services.

Key Features of a Successful Real Estate Website

1- Easy Navigation and Professional Design:

• Make sure your site looks good and is easy to use.
• Use clear menus for property listings, services, and contact info.

2- Mobile Optimization:

Many buyers browse on their phones, so your site must look and work on all devices.

3- Property Listings with IDX Integration:

• What Is IDX?

Internet Data Exchange (IDX) allows real estate agents to display MLS (Multiple Listing Service) properties on their website.

• Why Does IDX Matter?

Buyers can search listings in real-time ,which keeps them engaged with your site and positions you as a one-stop shop for all their real estate needs.

4- Call-to-Actions (CTAs):

Use CTAs like “Schedule a Consultation,” “View Properties,” or “Get Pre-Approved” to prompt visitors to take action.

5- About and Contact Pages:

• Share your story, qualifications, and mission on an “About” page.
• Make contact info easy to find, such as phone, email, and contact form.

6- Lead Generation Tools:

Offer resources like downloadable guides, mortgage calculators, or property alerts in exchange for visitor info.

7- Blog or Resource Section:

Write informative articles on real estate trends, buying tips or neighborhood guides. This positions you as an expert.

8- Client Testimonials and Reviews:

Showcase reviews from past clients to build trust and credibility.

Steps to Launching Your Real Estate Website

#01 Choose a Domain Name and Hosting Provider:

Pick a memorable domain name, ideally with your name or business name. Use reputable hosting providers like Bluehost, SiteGround or GoDaddy.

#02 Select a Website Platform:

Popular platforms like WordPress, Wix, or Squarespace offer customizable templates designed for real estate businesses.

#03 Integrate IDX Listings:

Work with a developer or choose a platform with built-in IDX to display MLS properties.

#04 Optimize for Search Engines (SEO):

• Make sure to incorporate keywords such as “homes for sale in [city]” consistently throughout your website.
• Add meta descriptions, alt text for images and internal links.

#05 Test and Launch:

Test your site on different devices before you go live to make sure it’s user-friendly and glitch-free.

Pro Tip: Once your site is live, maintain it by updating listings, posting fresh content, and regularly checking for broken links or outdated information.

Step #10 Understand the Financial Aspects of Your Business

Running a real estate business requires you to have a handle on the financials. From startup costs to ongoing expenses, you need to know where the money flows in and out of your business.

Start by estimating your initial investment. This includes:

• Licensing fees
• Marketing costs
• Website development
• Tools like CRM software.

If you’re going solo, you’ll also need to fund office space and equipment. Real estate businesses can have big upfront costs, so get a clear picture of these costs so you can plan accordingly.

Then, consider your operational expenses. These may include monthly subscriptions for marketing tools, continuing education, office rent, and transportation costs for meeting clients or visiting properties. Make sure to separate out the fixed costs like rent from the variable costs like advertising which will vary based on your business activity.

Revenue management is another important aspect. Track your income sources, whether it’s commissions, referral fees, or other services. Be realistic about how long it will take to close your first deal, as real estate has a delayed payoff.

Taxes can be tricky in real estate. You’ll need to account for self-employment taxes, property transaction taxes, and other fees. Consider working with a financial advisor or accountant to stay compliant and get the deductions.

Finally, set financial goals for your business. This could be a certain commission amount, a set number of property sales, or expansion into new markets.

Step #11 Continuously Educate Yourself

The final step to a successful real estate business is to commit to lifelong learning. The real estate industry is always changing, with market trends, regulations, and consumer preferences evolving daily. Stay updated and you’ll be competitive and be able to serve your clients better.

Begin by participating in workshops, attending webinars, and joining industry conferences. These events not only provide valuable insights but also allow you to network with other professionals.

Many real estate organizations, such as the National Association of Realtors (NAR), offer certifications and courses that enhance your expertise in specific areas like luxury homes, commercial real estate, or property management.

Reading industry publications and following real estate blogs will also keep you informed on market trends and new technology.

Pro Tip: Listening to real estate podcasts or watching online tutorials can fit seamlessly into a busy schedule.

Don’t overlook the power of mentorship. Working with experienced agents or business owners can provide hands-on learning opportunities and practical advice you won’t find in textbooks.

Finally, embrace technology to stay ahead. From mastering customer relationship management (CRM) tools to leveraging real estate marketing software, keeping up with tech innovations will give you an edge in a competitive market.

Frequently Asked Questions

How Do I Start Real Estate for Beginners?

First of all, decide on the type of real estate business you want, then get the licenses and create a business plan. Also educate yourself on the market and build a network to get credibility.

How Much Money Do I Need to Start a Real Estate Business?

It varies but typically includes licensing fees, marketing expenses, website development, and operational costs. Expect to invest $5,000 to $30,000, depending on your scale.

What Is the First Step in Starting a Real Estate Business?

First step is to decide on your real estate business model. Choose if you want to be an agent, flipper, developer, or wholesaler, and then research the market to match your goals.

Is It Hard to Start a Real Estate Business?

Starting a real estate business is hard due to licensing requirements, upfront costs, and market competition. But with proper planning, dedication, and continuous learning, it’s doable and highly profitable.