How To Start a Real Estate Business in 7 Steps

Many seek to change their career path for a variety of reasons. Whether that be to increase their income, have a better work-life balance, or want more opportunities to enhance their skills, many are looking for ways to pivot into a new field so they can have a better quality of life.

With rising costs and a tumultuous job market, many are also looking to start their own business as a way to generate passive income, reducing their reliance on a single paycheck in times of uncertainty. According to the U.S. Census Bureau, nearly 500,000 new businesses were formed in June 2025. This trajectory of new business has only continued to rise since its massive boom in 2023, when 5.5 million new business applications were filed.

One venture that many are turning to these days to increase their income is the real estate business. Reason being, that there’s no cap on the amount of money that can be made along with other factors like having a more flexible schedule compared to a standard 9 to 5, opportunities to explore different avenues within this industry such as property management and appraisal, and the overall ability to create long-term wealth that would otherwise be difficult to obtain with one income stream.

Thanks to the variety of digital platforms and small business tools that are out there these days, it’s easier than ever to start your own real estate business. This article will walk you through the process and cover areas on how to conduct market research, network with others in the industry, and attract your ideal customer so that you can make consistent sales. Check out the steps below.

Step 1: Figure Out Your Path

When starting out, it’s easy to get overwhelmed with figuring out the path you want to take, especially in real estate, since there are so many avenues. From property management to being an investor, agent, or appraiser, it can be challenging to decide which avenue is best to have a successful business. Since the opportunities are endless in all of these areas, it’s best to discover what your passions and skills are first so you can channel this energy into growing your business.

If you enjoy analyzing market trends and crunching numbers, then being a real estate investor may be the right path for you. In this role, you can expect to calculate return-on-investments (ROIs) for potential properties, secure financing for your investments, and create long-term investment plans that work for your business. If you like connecting with people daily, then being a real estate agent might be right for you. This position entails showing properties to clients, attending trainings and networking events to meet other business owners, and representing buyers and sellers in property transactions.

Being a property manager doesn’t only include working for another company; you can also have your own business too. As a property manager, you’ll be in charge of listing new units on the market and communicating with prospective tenants, handling lease agreements as well as move-in and move-out schedules and inspections, and compiling financial reports. If you’re good at learning different software systems, budgeting, and understanding the fine print and legalities that come with lease agreements, then property management is the perfect fit for you.

Though not the first path that comes to mind when thinking about the real estate business, an appraiser is still a lucrative career to have and one you can turn into a successful business. As an appraiser, you’ll primarily be focused on creating reports, inspecting clients’ properties, giving a valuation, and keeping a detailed track record of your findings and discoveries. This path is best for those who are analytical and detail-oriented.

With all these avenues, you can then start to map out the specific goals you want to achieve for your business, such as retaining a certain number of clientele within the first 6 months to a year, hitting your ideal target revenue, and finding unique ways to continue expanding your business.

Step 2: Do Your Research and Make a Plan

As a business owner who’s just starting out, doing research is key. You want to know what consumers are into, how to identify market trends, find your ideal client, and understand how the market is performing.

You can start your research by doing simple web searches to find statistics from credible sites like the U.S. Census Bureau, the U.S. Department of Housing and Urban Development, and the Federal Housing Finance Agency. These sites provide the data you’ll need, such as housing price indexes, mortgage rates, and housing vacancy rates, so you can make an informed decision on how you’ll conduct business. You can also read publications like U.S. News and World Report, Realtor.com, and the National Association of Realtors for similar, up-to-date insights.

The next step is to make a business plan that builds on top of the research you’ve already gathered, so you can make informed decisions and plan your goals accordingly. You can start by creating a business plan outline on a spreadsheet or blank document and listing the specific goals you want to achieve each month. You can also include the types of tools and resources you’ll need to hit these targets, whether that be scaling your email marketing outreach with tools like Mailchimp or Constant Contact, creating virtual tours for clients with Ricoh Tours, or using HubSpot CRM to track and maintain leads.

Step 3: Take Care of the Legalities

Before you can start retaining clients, you need to make sure your business is in proper standing first. This means registering it with the state where you plan to do business and taking care of any financial and tax-related documents before setting up shop.

When it comes to real estate, business owners can choose to elect their business as either an LLC, corporation, or sole proprietorship. Most choose to register their business as an LLC due to the variety of benefits and protective measures that comes with it such as the ability to separate personal and business assets, add multiple members or partners, which is common in real estate firms, and having the option of “pass through taxation” which means all the money that’s made from your business passes through your personal tax filings instead of being taxed twice.

Next, you’ll want to file for an EIN with the IRS so you can prove that you’re a legitimate business for tax purposes and open a business bank account. To do so, head to the IRS website and follow the prompts, which will direct you to input your business’s information. Once you receive your official EIN documents, you can then proceed to opening a business bank account so that you can keep your real estate business revenue separate from your personal finances.

As a real estate business owner, you’ll also need to obtain specific licenses to be able to do business. If you want to become an agent or an investor, then you’ll need to pass your state’s licensing exam. Some popular schools that offer test prep across the country include Aceable Agent, Kaplan, and The CE Shop.

As an appraiser, you’ll need to complete a certain number of qualifying education hours depending on your state and the license you’re obtaining, in addition to passing the National Uniform Licensing and Certification Exam via your state’s appraiser board. If you want to become a property manager, you’ll also need to take the same exam as real estate agents and get a property management license. The property management license can vary by state so you’ll need to double-check with your state’s real estate licensing board via the web.

Step 4: Connect With Your Industry

As with having any business, networking is key. It allows you to meet and learn from industry experts and bring in potential clients. In the real estate business, it’s common to attend local and regional events which usually showcase the latest trends and other key insights, emerging tools that can help streamline your business as well as different vendor exhibits from various companies and workshops led by established individuals who discuss various topics such as how to strategize your sales and marketing strategies, analyze case studies, and how to do proper tax planning.

These events also give you the opportunity to ask questions which are always important when learning something new. You can ask questions about how others got their start in the real estate industry, marketing and sales tactics they’ve used that have had a positive effect on their business, and the best networking tips for those who are new to the business.

You can also join a variety of real estate organizations, such as the National Association of Realtors, the International Institute of Real Estate Management, and the National Association of Residential Property Managers, which is geared towards property managers, the Real Estate Investors Association for investors, and the National Association of Appraisers.

Step 5: Build Your Brand and Find Your Ideal Client

When growing your real estate business, you’ll want to make sure that the strategies you’re using are effective and will work for your business long-term. You can start by building a professional website that showcases your services and skill set, along with a distinct company logo and professional image(s) of yourself so that potential clients can know who you are. If you know how to do so, you can create your website from scratch using content management platforms like WordPress, Squarespace, or Wix, or you can hire someone on Upwork or Fiverr to do it for you.

In tandem with your website, you’ll also want to create social media pages so you can reach your ideal client there, too. Platforms like Facebook and Instagram are great for doing this since they allow you to share images and videos of your property listings easily, create full-length captions, and recommend your posts to niche audiences based on where your business resides. If social media isn’t your forte, you can always hire a social media manager or marketer to help manage your accounts, making sure they stay up-to-date and consistently receive outreach and engagement for your business.

As a brand, you’ll also want to define your unique value proposition. Meaning, that you want to emphasize what separates your brand from the other real estate businesses that are out there. Some ideas to consider can be related to the types of clients you cater to, such as first-time homebuyers or retirees looking to downsize, as well as the kinds of properties you focus on, whether that be luxury homes, condos, townhouses, or multi-family homes.

You can also provide educational resources on your website and offer incentive packages that come with your business, such as marketing and advertising materials for property listings, market analysis reports that show the latest market trends, and consultations for improvements clients can make to their properties before putting them on the market.

Step 6: Turn Interest Into Sales

Getting clients is important, but retaining them matters too. To turn client interest into sales, you’ll want to make sure you use certain tactics to keep your clients engaged and be open to the possibility of receiving referrals from them as well. Going back to your unique selling proposition, you want to make sure this is explicitly showcased on your website and in the bio description of your social media pages so clients can understand what you bring to the table right off the bat.

This strategy aligns with having a clear call-to-action which propels clients to take the next step in working with you, which could look something like prompting them to tap the link in your social media bio to learn more information about your business, filling out a contact form on your website, or offering a free educational resource that is beneficial to the service they’re looking for.

As your business grows, you’ll also want to provide proof that your clients are satisfied with the work you do. You can do this by having your clients give you reviews and testimonials that can be displayed on your website. You can also create case studies that show proven results, such as how a client was able to value their home at a higher price thanks to your home improvement consulting service or a seller who received instantaneous offers after struggling to find a buyer for their property. That way, you can build credibility for future clients who’ll want to know that you’re good at what you do.

Step 7: Keep the Momentum Going

It’s easy to get overwhelmed when starting and maintaining a new business. But with the right tools and strategies, you’ll be well on your way to achieving your goals. By following the above steps, such as creating a proper business plan, having all the legalities in place, using the right marketing strategies, and engaging with clients in a way that puts their needs first, your business will have a strong foundation to expand upon.

Over time, it’s also important to strategize your techniques so you can be ready for when the market evolves and your business can adapt to these new changes. Continuing to stay up-to-date on the latest trends, networking with other business owners, and refining your marketing strategies are all effective ways to keep pushing forward and get the results you want.