How To Start a Real Estate Business in 2024: 10 Simple Steps

Starting your own real estate business or a real estate career as an independent contractor can provide immense opportunities. 

The real estate industry is booming, with a projected market value of nearly $120 trillion in 2024. And the National Association of Realtors (NAR) reports that more than 100,000 real estate brokerages exist in the US. 

In real estate, your determination, creativity, persistence, and ability to close deals limit your income. You don’t even need expensive office space to make it as a real estate professional in 2024. 

However, the booming real estate market also means that competition is fierce. Also, according to the latest statistics from the US Bureau of Labor Statistics, 20% of businesses fail in their first year, and nearly 50% fail in their first five. 

Fortunately, the most common reasons businesses fail are easily handled. The real estate industry is also unique because competitors must cooperate with each other for the industry’s overall survival. 

In this comprehensive guide, we’ll look at the 10 key steps required to start and operate your own real estate business, including essential tips from real estate experts.

Find talent on Fiverr to help you start and run a successful real estate business

1. Decide what type of real estate business you want to create

The real estate industry offers several real estate business models. Depending on your personality type or interests, some models might be more attractive to you than others.

If you’re a people person, you might be most interested in selling residential real estate as a real estate agent. If you prefer management tasks, leasing, and managing rental properties might be more up your alley. If you prefer investment-based business models, you might consider looking into commercial real estate. 

Let’s dive into some of the most popular real estate business models. 

Wholesaling—getting started in real estate investment with $0

One popular way to get started in real estate is through wholesaling.

In wholesaling, you enter into a contract with a seller to buy their property, then sell it again to another buyer, pocketing the difference. 

Theoretically, you could wholesale with no upfront costs. Still, it’s essential to structure the contract with the seller so you’re not forced to buy the property yourself if you can’t find another buyer. Wholesaling also requires knowledge of what properties are worth. 

For example, imagine finding a property you think you can sell for $100,000. To profit from a wholesale deal, you enter into a contract to buy the property for less than $100,000, such as $90,000, and then pocket the $10,000 if you find a buyer that will pay $100,000 for the property.

Wholesaling is legal in all 50 US states, although laws differ slightly from state to state. For example, wholesaling is legal in California, but the state has stringent regulations to protect buyers and sellers. 

“It’s important to understand your state and local laws regarding wholesaling, as some states require you to hold an active real estate license to perform these activities,” says Brie Schmidt, a seasoned real estate investor and owner of Second City Real Estate in Chicago. 

In wholesaling, your success depends significantly on the quality of the wholesale contract. So buy legal consulting services from qualified Fiverr freelancers to avoid costly errors.

“You also need a basic knowledge of how to determine the property value, renovation costs, and what the property will be worth after renovation,” Schmidt says. 

A properly configured spreadsheet that lists these potential costs will help you make accurate estimates. You can buy data processing services from Fiverr experts to help you with this. 

Important: Although wholesaling doesn’t legally require licensing or certification to get started in most states, it sometimes requires even more knowledge than a real estate agent has. Wholesalers must fully understand potential renovation costs and the house-flipping ecosystem, because many real estate investors buy properties from wholesalers to flip the property. 

Real estate agents

Becoming a real estate agent is the more traditional route to starting a real estate business. 

This potentially lucrative profession can give you a sufficient grounding in the real estate market so you can eventually go out on your own. 

According to Indeed, the average real estate agent’s salary is more than $95,000, which is $35,000 higher than the average US salary. 

Average real estate agent salary.

It’s important to remember that real estate agents earn their income primarily through sales commissions. So, the figure above could be much higher if you build your network and approach the activity as a business instead of as another job. 

No matter your real estate business model, your brand will remain the same. From the start, building that brand with a proper marketing strategy is important. You may want to buy digital marketing services early to launch your brand correctly. 

Although state laws differ, the following is the typical procedure for becoming a real estate agent:

• Be 18 years or older 

• Reside legally in the US 

• Complete any “pre-licensing” classes in your state 

• Pass your state’s real estate licensing exam 

• Pass a background check 

• Get a real estate broker to sponsor you as a new agent 

• Continue your education to maintain your license 

Real estate brokerages

All real estate agents must operate under the umbrella of a real estate brokerage, but a brokerage can operate independently. 

Most states require that you obtain a broker’s license to open a real estate brokerage. Check to determine if your state requires one. 

Real estate brokerages take on more risk than an agent. For example, the brokerage is legally responsible for all real estate agent sales underneath it, not the agent. In return for assuming this risk, brokerages take a percentage of the real estate agent’s sales commission. 

“Realtor” and the National Association of Realtors (NAR)

Although people sometimes confuse the term “Realtor” with “real estate agent,” the terms differ significantly. 

“Realtor” is a trademarked word, referring to members of the National Association of Realtors (NAR), the US’s largest real estate trade association. 

You don’t have to be a real estate agent or real estate brokerage to become a Realtor, but you must be an active real estate professional. Other requirements include:

• You must have an active real estate license. 

• You can’t have a record of official sanctions for unprofessional conduct. 

• You can’t recently have filed for bankruptcy or have any open bankruptcy filings. 

The NAR insists on members following a strong code of ethics. You pay a once-off application fee and yearly dues to remain a member. 

One of the most significant benefits of becoming a Realtor is gaining access to the Multiple Listing Services (MLS) database, which real estate professional Alex Martinez calls the “king database of leads” for real estate sales. 

Screencap of YouTube video by real estate professional Alex Martinez of Real Estate Skills. 

“You’ll never be able to beat the information that a Realtor with MLS data can get,” says Dave Forehand, owner and founder of Team Forehand Realty, which serves Wisconsin. 

The MLS isn’t a single database, but many private databases of listed properties that real estate professionals can access. 

Part of succeeding in the real estate industry is working with your competitors. Through the MLS, real estate professionals can share property info and thus help homebuyers find the perfect home by sharing information on what homes they’re selling. Members share commissions on referred sales, and everyone wins. 

Regardless of whether you stick with being a real estate agent or eventually start your own real estate brokerage, registering as a Realtor will open doors for you. 

Property management

Another real estate business idea is property management. In property management, you take care of real estate properties, whether short-term rentals, residential long-term rentals, or large commercial properties. 

Property management duties typically include collecting rents, maintaining the property, handling tenant issues and inquiries, ensuring compliance with legal and regulatory requirements, and potentially marketing the property to prospective tenants.

These duties can vary based on the type of property being managed and the specific agreement between the property manager and the property owner.

Being a property manager requires excellent organizational and financial skills. You can buy business consulting services from Fiverr freelancers to help establish what you’ll need organizationally to succeed as a property manager. 

2. Get into a business mindset

No matter the type of real estate business you decide to get into, you must adopt a business mindset. 

Even being a real estate agent requires building a personal brand, interacting on social media, and networking. According to the NAR, 89% of Realtors operate as independent contractors, and only 4% are employees. 

Because real estate agents work on commission, all the same economic laws that apply to small businesses and entrepreneurs also apply to individual real estate agents. Any new business requires hard work, market research, networking, and advertising. 

The good news is that you control your income. As a new real estate business owner, the power is in your hands to scale your real estate company from a single-person show to something much larger. 

3. Write a business plan

Business ideas require solid business plans to be successful. Also, a business plan is mandatory if you want to get a business loan or financing from investors. 

Real estate business plans are important because you’ll:

• Conduct necessary market research to position yourself competitively in the market you’ll serve. 

• Understand your competitors. There’s no point in offering the same service as a massive competitor in your neighborhood. 

• Decide on the business structure, which will have significant tax and profit implications, depending on the real estate business model you follow. This is a detailed topic, but you can buy legal consulting services from expert Fiverr freelancers to help you make an informed decision. 

• Need to consider your sales strategy, revenue models, and marketing strategies. It’s essential to look at this thoroughly before starting a business to foresee potential gaps long before they become a problem and be prepared for them. 

Putting together a comprehensive business plan is an extensive task—we recommend buying business plan services from Fiverr freelancers to help you. 

4. Prepare a financial plan

Cash flow is vital to your business at all stages. Real estate agents initially need to pay for a license. That requires a financial plan before you start. 

“It costs between $1,500 and $2,000 to get your license,” says Forehand. Upfront costs might differ from state to state. 

People like to promote that wholesaling has zero startup costs, but you’ll need to understand the real estate industry and ecosystem. That requires time and money investment. Becoming a real estate agent first could give you the knowledge to be a better wholesaler. 

Draw up a financial plan that lays out:

• Your startup costs

• Where to get funding for those costs (if you don’t have the funds yourself) 

• Running costs once the business gets going (advertising, marketing, travel, and accounting costs)

• How your new business will earn revenue 

“If you don’t have the capital, seek out partners, private money investors, or loans with lenders,” says Schmidt.

The most important questions that investors want answered are:

• What’s your revenue model?

• Is it realistic that you’ll achieve your revenue goals?

If you can answer those two questions, you’ll be far more likely to secure investment for your new real estate business. 

Proving that hitting your revenue goals is realistic requires solid financial planning, including details about marketing, sales, and cash flow. 

5. Register a company

Even real estate agents who work under a real estate brokerage can benefit from registering a company, such as a limited liability company (LLC). 

An LLC is a separate business entity from you. It has its own rights under the law and handles its own debts, which protects your personal finances in the event of unpaid debts or litigation against the business entity. 

If you don’t register an LLC and operate instead as a sole proprietor, you’ll put your personal finances at risk if the business goes bankrupt. 

Suppose you’re planning an investment-focused real estate business with many real estate investors who don’t participate actively in the day-to-day business activities—a limited liability partnership (LLP) might be the best business structure for you. 

“It’s important to consult an attorney about various business structures and a CPA about tax implications on the various investing strategies,” says Schmidt. 

Finally, you’ll need a business name. In the United States, a name becomes trademarked the moment someone uses it in commerce, so conduct a thorough search to ensure your new business name isn’t being used elsewhere. 

Once you’re ready to register the business, you can buy business registration services from Fiverr freelancers and start operating your business. 

6. Network and find properties to sell

Networking is essential to making it in real estate. Much of your business will come from referrals from other real estate agents who’ll take a small percentage of the commission of the sale.

Referrals are common in real estate. Agents often encounter clients whose needs are outside their geographical area of expertise, specific market knowledge, or property-type specialization. In such cases, they refer those clients to other agents better suited to assist them. In this way, buyers are happy, and the industry itself grows. 

“Having a trusted network can mean the difference between saving a deal or having it fall through,” Forehand says. “The best way to find properties and deals is to talk and network with more people. If you have a reputation for getting deals done, then people will start bringing deals to you.”

LinkedIn is an excellent platform to build your professional network. If you need help creating a successful LinkedIn strategy, you can buy social media marketing services from Fiverr professionals to help you. 

7. Start executing your marketing plan

If networking forms one side of the real estate coin, marketing forms the other. 

Your marketing strategy should include:

• A professionally designed real estate website that answers all potential clients’ questions 

• Search engine optimization (SEO) to increase your chances of your target audience finding you 

• Social media marketing, including a strategy to increase your audience and followers on various social media platforms 

TikTok’s popularity has exploded, so don’t underestimate the power of this platform for personal brand-building. 

“Social media is tried and proven,” says Forehand. “Good news travels fast, as they say. But ensure you know what you’re doing and care for your clients, because bad news travels twice as fast.”

Fiverr professionals can help you with every aspect of your marketing strategy, including putting together physical marketing materials to distribute to potential buyers. 

As you scale, you can add an AI-powered chatbot to your website. These chatbots can answer most common questions, freeing you up to deal only with leads with stronger purchase intent. You can buy AI chatbot services from Fiverr professionals to implement this on your website.

Your marketing strategy doesn’t need to be expensive. You can buy content strategy services from Fiverr freelancers to create an effective content plan that reaches your target market. You can then bolster that strategy by buying SEO services to help you improve your web presence and rise up on search engine results pages. 

8. Invest in a customer relationship management (CRM) tool

Customer relationship management (CRM) software tool that lets you track your leads and any necessary follow-ups. Some advanced CRMs also allow you track marketing activities to leads, so you know which marketing campaign worked on which person. 

Several free and paid CRMs exist on the market, and you can also buy CRM management services from Fiverr freelancers to help you configure your CRM. 

9. Advertise online

SEO is a long-term strategy, whereas online paid advertising can drive leads right away. 

Before paying for advertising, make sure you optimize your landing page so you can maximize its conversions. A high-converting landing page typically consists of:

• A simple yet compelling design 

• A strong call to action 

• Excellent UX (user experience) copy 

To help you create a landing page, you can buy landing page services from Fiverr professionals. 

Once your landing page is ready to receive traffic, you can create an advertising campaign for it. Many platforms exist for online advertising campaigns, such as TikTok, LinkedIn, Google, Bing, Facebook, and others. 

Deciding what platform to advertise on depends on your target audience and your campaign’s goals. LinkedIn might be the best place to advertise if your new business focuses primarily on B2B (business-to-business) sales, such as for commercial real estate businesses. 

TikTok might be the place to go if you want to target a younger demographic of potential homebuyers or just want a broad brand awareness campaign. 

Facebook advertising is renowned for its advanced targeting features that let you focus precisely on specific demographics and interests. 

Advertising on Google can help you reach buyers with strong purchase intent. 

Advertising online is an excellent way to increase qualified leads, but it’s also possible to lose money if the advertising campaign isn’t optimized. Consider buying paid social media services from Fiverr professionals to advise you on the best advertising strategy for your particular real estate business model. 

10. Monitor metrics, then iterate 

Finally, you need to iterate. 

Running a business doesn’t happen automatically. You must constantly monitor the effectiveness of your advertising, SEO, and networking strategies to ensure you’re getting the maximum benefit for your ad spend and efforts. 

Several excellent tools exist to analyze social media metrics.

Some social media metrics relate more directly to conversions than others. 

Using tools like Google Analytics, you can also correlate your ad spend with results, and measure the effectiveness of your SEO strategy. 

Actively monitor your various campaigns and how many leads you get, then iterate on your strategy to improve your business. 

Find talent on Fiverr to help you start and run a successful real estate business

Getting into real estate is challenging as a beginner. 

Fortunately, Fiverr has expert freelancers who can help you start a new real estate business and help you actively manage your online campaigns once your business starts growing. 

From writing a business plan and registering your business to preparing social media content and configuring a comprehensive social media campaign, Fiverr experts can help at every step. 

To find talent on Fiverr, open an account and search for the service you need. Alternatively, use the top menu on Fiverr to browse the profiles of professionals in each service category. 

After making a short list of freelancers, buy their services directly or contact them for details on their offer. Fiverr’s safety and security team oversees your progress at every step to ensure you and the seller have an excellent experience. 

To get started, open an account on Fiverr today.