{"id":5415,"date":"2024-09-26T15:48:10","date_gmt":"2024-09-26T20:48:10","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-start-a-real-estate-business.html"},"modified":"2025-06-26T16:12:00","modified_gmt":"2025-06-26T21:12:00","slug":"how-to-start-a-real-estate-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-start-a-real-estate-business.html","title":{"rendered":"How To Start a Real Estate Business"},"content":{"rendered":"\n<section data-testid=\"fl-simple-hero\"  class=\"fl-simple-hero\">\n    <div class=\"fl-simple-hero-container fl-container fl-flex fl-items-center\">\n                <div class=\"fl-simple-hero-title\" data-testid=\"fl-simple-hero-title\">How To Start a Real Estate Business<\/div>\n            <\/div>\n<\/section>\n    <div class=\"fl-container\">\n        <div class=\"updated-breadcrumb-list\">\n            <ol>\n                        <li>\n                <a href=\"https:\/\/www.findlaw.com\">FindLaw <\/a>\n                <span class=\"breadcrumb-separator\" aria-hidden=\"true\">\/<\/span>\n            <\/li>\n                                <li aria-current=\"page\">How To Start a Real Estate Business<\/li>\n            <\/ol>\n\n        <\/div>\n    <\/div>\n\n\n\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">How To Start a Real Estate Business<\/h1>\n\n\n<figure class=\"wp-block-image fl-no-margin\"><img decoding=\"async\" src=\"https://www.findlaw.com/static/c/images\/image\/upload\/ability-law\/wp-prod\/content-original-images-ThinkstockPhotos-624053886.jpg\" alt=\"Real Estate and Brokerage\"\/><\/figure>\n\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            June 26, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>To start in the <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_26787091\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"26787091\">real estate business<\/span>, you should learn about the market, get your <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_26787113\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"26787113\">real estate license<\/span>, choose the legal structure for your business, and create a business and <span data-action=\"click-&gt;dropdown#toggle\" data-dropdown-menu-id-param=\"menu_report_term_26787131\" data-dropdown-placement-param=\"top\" data-dropdown-disable-toggle-aria-param=\"true\" data-term-id=\"26787131\">marketing plan<\/span>.<\/p>\n\n    <\/div>\n\n\n\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-real-estate-business-in-content\" target=\"_blank\" rel=\"noopener\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n\n\n<div class=\"tableOfContent\">\n    <div class=\"table-of-contents\">\n        <span role=\"heading\" aria-level=\"2\" class=\"table-of-contents__title\">10 Steps To Start a Real Estate Business<\/span>\n                <ul class=\"table-of-contents__list\">\n                        <li><a href=\"#Research\" title=\"1. Research Your Real Estate Market\">1. Research Your Real Estate Market<\/a><\/li>\n                        <li><a href=\"#Get\" title=\"2. Get Your Real Estate License\">2. Get Your Real Estate License<\/a><\/li>\n                        <li><a href=\"#Broker\" title=\"3.  Find Your Broker\">3.  Find Your Broker<\/a><\/li>\n                        <li><a href=\"#Join\" title=\"4. Join the National Association of Realtors\">4. Join the National Association of Realtors<\/a><\/li>\n                        <li><a href=\"#Plan\" title=\"5.  Make a Real Estate Business Plan\">5.  Make a Real Estate Business Plan<\/a><\/li>\n                        <li><a href=\"#Structure\" title=\"6. Choose a Business Structure\">6. Choose a Business Structure<\/a><\/li>\n                        <li><a href=\"#EIN\" title=\"7. Get an EIN\">7. Get an EIN<\/a><\/li>\n                        <li><a href=\"#License\" title=\"8. Apply for Business Licenses\">8. Apply for Business Licenses<\/a><\/li>\n                        <li><a href=\"#Marketing\" title=\"9. Create a Marketing Plan\">9. Create a Marketing Plan<\/a><\/li>\n                        <li><a href=\"#Partner\" title=\"10. Partner With a Real Estate Lawyer\">10. Partner With a Real Estate Lawyer<\/a><\/li>\n                    <\/ul>\n            <\/div>\n<\/div>\n\n\n<p>The real estate business can have high-income potential and a low barrier to entry. As a real estate entrepreneur, you also enjoy independence in how you operate your business and flexibility with your schedule. This article will guide you through how to start your own real estate small business as an agent, broker, or investor.<\/p>\n<p>Real estate businesses require various legal considerations.\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate.html\">Real estate laws<\/a>, licensing requirements, and disclosures all come into play when running a small business in real estate. You must also be comfortable with the foundation of the business \u2014\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/contracts-basics.html\">contracts and agreements<\/a>.<\/p>\n<p>See FindLaw&#8217;s\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness.html\">Small Business Center<\/a>\u00a0for additional articles and resources on starting and running your own business.<\/p>\n\n\n\n<h2>10 Steps To Start a Real Estate Business<\/h2>\n\n\n<div class=\"general-step-component\">\n    <div class=\"steps-container\">\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            1\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Research\">Research Your Real Estate Market<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Find out what makes&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/marketing-research.html\" title=\"Marketing Research\">your market<\/a>&nbsp;unique or challenging. Know what might appeal to prospective clients. For example, are any new companies moving into town, like a new hospital?<\/p>\n<p>Research area schools, businesses, medical facilities, and community services. Potential clients will want to know specific information about the community.<\/p>\n<p>In addition, learn about the real estate industry in your area. For example:<\/p>\n<ul>\n<li>Are there too many buyer&#8217;s agents or seller&#8217;s agents?<\/li>\n<li>What is the&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/median-price.html\" title=\"Median Price\" target=\"_blank\" rel=\"noopener\">median home price<\/a>?<\/li>\n<li>Are homes selling above or below the asking rate?<\/li>\n<li>Are there any problems with properties in your area, such as homes&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/home-inspections-before-you-buy.html\" title=\"Home Inspections Before You Buy\">failing inspection<\/a>&nbsp;due to termites, radon, or other issues?<\/li>\n<\/ul>\n<p>The better you know your real estate market, the better prepared you will be. Clients also appreciate knowledgeable and experienced agents.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            2\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Get\">Get Your Real Estate License<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>To get your real estate license, you must:<\/p>\n<ul>\n<li>Complete a pre-licensing course<\/li>\n<li>Pass a written exam<\/li>\n<li>Apply to your state board of real estate licenses<\/li>\n<\/ul>\n<p>Each state has specific procedures for issuing real estate licenses. For example,&nbsp;<a href=\"https:\/\/www.dre.ca.gov\/examinees\/requirementssales.html\" title=\"Requirements to Apply for a Real Estate Salesperson License\" target=\"_blank\" rel=\"noopener\">California<\/a>&nbsp;requires you to complete three college-level real estate courses and pass a written exam. In&nbsp;<a href=\"https:\/\/openmyfloridabusiness.gov\/business\/53\/real-estate-agents-and-brokers\/\" title=\"Florida Real Estate Agents and Brokers\" target=\"_blank\" rel=\"noopener\">Florida<\/a>, you must take 63 hours of a pre-license course and pass a written exam. However, Florida waives the course requirement if you hold a four-year degree or higher in real estate.<\/p>\n<p>Real estate license exams generally cover the basics of:<\/p>\n<ul>\n<li>Real estate law<\/li>\n<li>Negotiations<\/li>\n<li>Closings<\/li>\n<li>Ethics<\/li>\n<\/ul>\n<p>Each state has its own exam.<\/p>\n<p>If you want to sell property in multiple states, you must obtain a real estate license in each state where you plan to do business.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            3\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Broker\">Find Your Broker<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Most states require agents to work under a&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/selling-your-home\/interview-with-real-estate-brokers.html\" title=\"Interview With Real Estate Brokers\">licensed broker<\/a>. Brokers typically work in a real estate agency or brokerage firm and manage a team of real estate agents.<\/p>\n<p>Your broker supervises your transactions and is responsible for your actions. In exchange for their supervision, you pay the broker fees or a percentage of your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/when-is-a-sales-commission-legally-earned.html\" title=\"When is a Sales Commission Legally Earned?\">commissions on sales<\/a>. Working under the right broker for your business can significantly impact your chance at success. Choose wisely \u2014 consider commission structures, professional support, marketing resources, and reviews.<\/p>\n<p>Your broker should also serve as your industry mentor and be your go-to for&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-resources.html\" title=\"Starting a Business: Resources\">coaching and support<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            4\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Join\">Join the National Association of Realtors<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>All Realtors are real estate agents, but not all real estate agents are Realtors.<\/p>\n<p>Realtors are members of the professional organization&nbsp;<a href=\"https:\/\/www.nar.realtor\/\" title=\"National Association of Realtors\" target=\"_blank\" rel=\"noopener\">National Association of Realtors (NAR)<\/a>. NAR has additional professional responsibilities beyond what state licensing laws require. NAR members also must meet a strict code of ethics and professional standards.<\/p>\n<p>NAR members have access to business tools such as:<\/p>\n<ul>\n<li>Market research<\/li>\n<li>Industry data and statistics<\/li>\n<li>A national database of properties and foreclosures<\/li>\n<li>Educational programs<\/li>\n<li>Networking opportunities<\/li>\n<\/ul>\n<p>As a licensed real estate agent, you are not required to join NAR to practice real estate in your state. However, NAR membership can enhance your credibility and professional reputation.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            5\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Plan\">Make a Real Estate Business Plan<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Mapping out your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-a-business-plan.html\" title=\"Creating a Business Plan\">business plan<\/a>\u00a0will help you define your goals and identify potential challenges.<\/p>\n<p>An important part of your business planning is establishing your niche. Do you want to work with residential homebuyers and sellers? Or do you prefer to help corporate clients looking for commercial properties? Some agents specialize in particular areas, like military relocation. Others focus on land deals, rural property, or farmland.<\/p>\n<p>Your business plan should address the following areas:<\/p>\n<ul>\n<li>Defining your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/your-target-market.html\" title=\"Your Target Market\">target market<\/a><\/li>\n<li>Identifying your customer<\/li>\n<li>Crafting a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/your-marketing-plan.html\" title=\"Your Marketing Plan\">marketing strategy<\/a><\/li>\n<li>Estimating your costs for marketing and business setup or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\" title=\"Start-Up Financing\">startup costs<\/a><\/li>\n<li>Determining what you need to earn in commissions to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/tips-for-a-successful-small-business.html\" title=\"Tips for a Successful Small Business\">turn a profit<\/a><\/li>\n<\/ul>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            6\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Structure\">Choose a Business Structure<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Most real estate agents structure their business as a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporations.html\" title=\"Corporations\">corporation<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llcs.html\" title=\"LLCs\">limited liability corporation (LLC)<\/a>. Both legal structures protect your personal assets from your business&#8217;s&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/liability-definition.html\" title=\"Liability Definition\">debts and liabilities<\/a>&nbsp;if a buyer or seller sues your business.<\/p>\n<p>For example, if a homebuyer discovers mold in their home and&nbsp;<a href=\"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-.html\" title=\"Can I Sue?\">sues you<\/a>&nbsp;for failing to disclose a material defect about the property, your personal assets are not at risk in the lawsuit.<\/p>\n<p>Corporations and LLCs also give you&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/corporation-versus-llc.html\" title=\"Corporation vs. LLC\">tax advantages<\/a>. Both business entities keep your personal finances separate from your business activity.<\/p>\n<p>As a self-employed business owner, you can avoid double taxation by electing&nbsp;<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/s-corporations\" title=\"S Corporations\" target=\"_blank\" rel=\"noopener\">Subchapter S<\/a>&nbsp;status. This means your income is not taxed at the corporate level and again as personal income. As an&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-an-s-corporation-.html\" title=\"What is an S Corporation?\">S corporation<\/a>&nbsp;or <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-real-estate-business&#038;auto-aff-llc\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">LLC<\/a>, you file a Schedule K-1 with your income and expenses in your&nbsp;<a href=\"https:\/\/www.findlaw.com\/tax\/federal-taxes\/personal-income-taxes-overview.html\" title=\"Personal Income Tax: Overview\">personal tax return<\/a>.<\/p>\n<p>Some independent real estate agents choose to structure as a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorships.html\" title=\"Sole Proprietorships\">sole proprietorship<\/a>. Sole proprietorships are the simplest entity to set up but&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sole-proprietorship-vs--llc.html\" title=\"Sole Proprietorship vs. LLC\">do not provide personal liability protection<\/a>. A sole proprietorship is a pass-through entity for&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorship-taxes.html\" title=\"Sole Proprietorship Taxes\">tax purposes<\/a>. This means your business profits are not separate and pass through to your individual income tax.<\/p>\n<p>A sole proprietorship is the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/how-to-set-up-a-sole-proprietorship.html\" title=\"How To Set Up a Sole Proprietorship\">default legal entity<\/a>&nbsp;for your business if you do not choose another type of business structure.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            7\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"EIN\">Get an EIN<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>If you structure your business as a corporation or LLC, you must get an&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/getting-an-employer-identification-number-ein.html\" title=\"How To Get an EIN Number\">Employer Identification Number<\/a>&nbsp;(EIN) from the Internal Revenue Service (IRS). The IRS uses your EIN for identification and tax purposes. You will need an EIN before you can open a business bank account. You can get your EIN instantly and at no cost by applying on the&nbsp;<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" title=\"Apply for an Employer Identification Number (EIN)\" target=\"_blank\" rel=\"noopener\">official IRS website<\/a>.<\/p>\n<p>If you structure your business as a sole proprietorship, you will use your Social Security number instead of an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-real-estate-business&#038;auto-aff-ein\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">EIN<\/a>.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            8\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"License\">Apply for Business Licenses<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>In addition to the real estate license issued by your state, you may need other state or local\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\" title=\"Business Licenses and Permits\">business licenses and permits<\/a>\u00a0to operate your real estate business. Check with your jurisdiction&#8217;s department of commerce or business agencies for specific requirements.<\/p>\n<p>For example, you may need a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/commercial-zoning.html\" title=\"Commercial Zoning\">zoning permit<\/a>\u00a0if you have a storefront for your real estate agency.<\/p>\n<p>Along with <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115313\/26746?subId1=how-to-start-a-real-estate-business&#038;auto-aff-business-license\" class=\"diy-biz-affiliate\" rel=\"sponsored noopener\" data-cta=\"Biz Auto LZ - LATL Txt\" data-cta-url=\"legalzoom.com\" target=\"_blank\">business licenses<\/a>, you may want to determine <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-business-insurance-.html?fli=latl_biz_howto:diy_biz_ins:txt\">what business insurance you need<\/a>. For example, if you operate a storefront you may want insurance for personal injury and property damage.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            9\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Marketing\">Create a Marketing Plan<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>As a real estate professional, you sell yourself to potential buyers and sellers of properties. An effective&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\" title=\"How To Craft an Effective Marketing Plan\">marketing plan<\/a>&nbsp;is critical for meeting your objectives and growing your business.<\/p>\n<p>Your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-determine-the-ideal-target-audience-for-a-business.html\" title=\"How To Determine the Ideal Target Audience for a Business\">target audience<\/a>&nbsp;should inform your marketing strategy. Knowing who your target market is and what their preferences are will help you position your messaging and choose the best channels to reach them.<\/p>\n<p>Start&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/build-a-business-website.html\" title=\"Make a Website for Your Business\">with a website<\/a>&nbsp;about your services. You will also want to develop a strong social media presence. Post consistently on Facebook and Instagram and optimize your LinkedIn profile. You can even leverage keywords on your LinkedIn profile to help drive traffic to your page. This is a great way to build your brand, attract new clients, and generate referrals.<\/p>\n<p>Other effective digital strategies include&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/essential-advertising-rules-for-your-businesses.html\" title=\"Essential Advertising Rules for Your Businesses\">online advertising<\/a>, search engine optimization (SEO), and&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/email-marketing-best-practices.html\" title=\"Email Marketing Laws and Rules\">email marketing<\/a>.<\/p>\n<p>Traditional methods like direct mail, word-of-mouth, and print advertisements can also be effective. Encourage new homeowners and sellers to leave you a business review after working with you. In addition, take an active part in your community. Think of sponsorships, community events, and other grassroots methods that help you&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/the-basics-of-marketing-a-small-business.html\" title=\"How To Craft an Effective Marketing Plan\">build relationships with potential clients<\/a>.<\/p>\n<p>You&#8217;ll also need to promote the properties you are listing. Use social media and online platforms to highlight homes on the market and provide information about your community. Host both in-person open houses and virtual tours.<\/p>\n<p>Hopefully, your&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/advertising-do-s-and-don-ts.html\" title=\"Advertising Do&#039;s and Don&#039;ts\">marketing strategy<\/a>&nbsp;is effective in building your business and client list. Consider investing in customer relationship management (CRM) software to help you manage client information, emails, and follow-ups.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n                    <div class=\"steps-container-item\">\n                <div class=\"category-overview category-overview-item-steps\">\n                    <div class=\"category-overview-heading category-overview-heading-steps\">\n                        <div class=\"category-overview-steps\">\n                            10\n                        <\/div>\n                        <h2 class=\"category-overview-steps-title\" id=\"Partner\">Partner With a Real Estate Lawyer<\/h2>\n                    <\/div>\n                    <div class=\"category-overview-content-steps\">\n                        <p>Many issues can arise between a buyer and a seller before closing the deal. Besides ensuring your transaction goes smoothly, a&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" title=\"Real Estate Lawyers\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>:<\/p>\n<ul>\n<li>Resolves conflicts<\/li>\n<li>Reviews contracts<\/li>\n<li>Checks titles<\/li>\n<li>Records deeds<\/li>\n<\/ul>\n<p>Some states require using a real estate lawyer to&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/why-you-need-a-lawyer-when-buying-a-house.html\" title=\"Do I Need a Lawyer to Buy a House?\">buy a property<\/a>. Regardless, have working relationships with a few local attorneys to recommend to your clients.<\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<h2>How To Become a Real Estate Broker<\/h2>\n<p>A real estate broker is a classification above a real estate agent. A broker has more experience, advanced training, and a state broker&#8217;s license. To become a broker, you must work two to five years as a real estate agent and then pass a state license exam. Check for the specific requirements in your state.<\/p>\n<p>As a broker, you can set up your own real estate company and supervise other real estate agents in their transactions. Because you receive a fee\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/when-is-a-sales-commission-legally-earned.html\">on their commissions<\/a>, there is more potential for income in real estate brokerage.<\/p>\n<p>Real estate agents with a valid broker&#8217;s license do not have to find a separate broker to supervise their transactions. You can represent yourself in transactions, but most states require you to disclose this.<\/p>\n<h2>Real Estate Investing<\/h2>\n<p>Another way to profit in the real estate market is through real estate investing. If you have access to loans or capital, you can invest in\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/llcs-for-investment-properties.html\">income-producing properties<\/a>\u00a0such as rental properties.<\/p>\n<p>For example, you can purchase a property and\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/rental-lease-agreements.html\">lease it to an individual<\/a>\u00a0(residential real estate) or business (commercial real estate). Generally, commercial properties are more expensive.<\/p>\n<p>The advantages of real estate investing are a steady stream of income and\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/legal-glossary\/property-rights-and-real-estate-law.html\" target=\"_blank\" rel=\"noopener\">property appreciation<\/a>. Disadvantages include:<\/p>\n<ul>\n<li>Nonpayment of rent<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/eviction-and-unlawful-detainer.html\">Troublesome tenants<\/a><\/li>\n<li>Vacancies<\/li>\n<li>Repairs and maintenance<\/li>\n<li>Can necessitate property management<\/li>\n<\/ul>\n<p>Another investment opportunity involves flipping houses. This refers to buying a low-cost property, making renovations, and selling it for a higher price. To be successful, you must have experience hiring contractors or know how to do several aspects of construction yourself.<\/p>\n<p>As a real estate investor, you must know the investment location and understand any potential legal issues. For example, the\u00a0<a href=\"https:\/\/www.hud.gov\/federal_housing_administration\" target=\"_blank\" rel=\"noopener\">Federal Housing Administration<\/a>\u00a0(FHA) places some restrictions on house flipping. Also, it is vital to understand\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law.html\">landlord-tenant laws<\/a>\u00a0if you own rental properties.<\/p>\n<p>You must also be comfortable acting quickly and decisively in competitive markets.<\/p>\n<p>Consider aligning yourself with a\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/legal-help-resources\/landlords-get-help-now.html\">real estate attorney<\/a>\u00a0to negotiate sales contracts, leases, and subleases. A real estate attorney can also handle\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/land-use-and-zoning.html\">zoning and land use issues<\/a>. Additionally, they can check titles and handle disputes and lawsuits.<\/p>\n<p>It is wise to form a corporation, limited liability company, or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/the-small-business-partnership-general-and-limited-partnerships.html\">limited partnership<\/a>\u00a0for your real estate investment activities. You will want to protect your personal assets\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-to-expect-business-liability.html\">from the liabilities of your business<\/a>.<\/p>\n<h2>Tips for a Successful Real Estate Business<\/h2>\n<p>Successful real estate entrepreneurs are experts on the local housing market and property laws. They also have strong selling skills and interpersonal abilities. Also, consider the following\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/tips-for-a-successful-small-business.html\">business tips<\/a>\u00a0for new agents and budding real estate professionals:<\/p>\n<ul>\n<li>In today&#8217;s digital age, consumers appreciate videos of properties in addition to photos. Invest in high-quality photography and videography, or hire a professional.<\/li>\n<li>Network consistently. Throughout your real estate career, you should create professional connections with other real estate professionals, attorneys, business owners, and community leaders.<\/li>\n<li>Continue learning and developing your skills. Utilize podcasts, industry conferences, and seminars.<\/li>\n<li>Be natural. High-earning real estate agents know how to leverage their unique strengths. If you&#8217;re an analytical, numbers person, lean on your expertise in market analysis. If you&#8217;re a natural extrovert, capitalize on your ability to connect and communicate.<\/li>\n<li>Get professional help when necessary. Hiring a real estate attorney or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/top-10-reasons-to-contact-an-attorney-before-choosing-a-business.html\">business organization attorney<\/a>\u00a0is an investment, but it can help you avoid major legal troubles down the road. You can also benefit from hiring other professionals, like a home stager or a graphic designer for your marketing. A business coach can help you set specific, attainable short-term and long-term goals for your business.<\/li>\n<li>Take advantage of\u00a0<a href=\"https:\/\/www.google.com\/business\/\" target=\"_blank\" rel=\"noopener\">Google&#8217;s Business Profiles<\/a>. This free tool lets you create and manage your online presence on Google Search and Maps. You can highlight your services, interact with clients through reviews, post updates, and more.<\/li>\n<\/ul>\n<h2>Get Legal Help With Your New Real Estate Business<\/h2>\n<p>You can make a profit in real estate as an agent, broker, or investor. However, it&#8217;s important to know about the various laws and regulations that govern real estate and property transactions. While you can likely manage most of your business by yourself, it can help to have a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>\u00a0on your side for legal issues.<\/p>\n<p>First-time business owners may need even more support. An experienced\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">attorney in your area<\/a>\u00a0can help you navigate licensing, landlord-tenant laws, contract negotiations, and more.<\/p>\n<h2>Get Online Help Forming Your Small Business<\/h2>\n<p>If you are ready to start your business, you can let our\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-real-estate-business-custom-content\" target=\"_blank\" rel=\"noopener\">trusted partner LegalZoom<\/a>\u00a0handle your business formation filing for $99 plus filing fees.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n               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      <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n           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class=\"general-card__header-image--newLegalZoomText\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom_text.png\"\n                     alt=\"\">\n                <img decoding=\"async\" loading=\"lazy\" class=\"general-card__header-image--newLegalZoom\"\n                     src=\"\/wp-content\/themes\/ability-law\/resources\/images\/legal-zoom\/legal_zoom.png\"\n                     alt=\"\">\n            <\/div>\n            <span class=\"general-card__header-title fl-text\"><p>Meet FindLaw&#8217;s <b>trusted partner LegalZoom<\/b>, an industry leader in online business formations<\/p>\n<\/span>\n        <\/div>\n        <div class=\"general-card__body\">\n            <div class=\"text section\">\n                <div class=\"cmp-text\">\n                    <h2 class=\"general-card__h2--newLegalZoom fl-h3-landing\">Let&#8217;s start your free LLC!<\/h2>\n                    <div>\n                        <\/p>\n<p>Join the millions who launched their businesses with LegalZoom.<\/p>\n<p><b>LLC plans start at $0 + state fees.<\/b><\/p><\/p>\n\n                    <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n        <div class=\"general-card__footer\">\n            <a class=\"general-card__footer-link fl-text-lg diy-biz-affiliate\" data-cta-url=\"legalzoom.com\" data-cta=\"Biz LZ - StateLaws ESum\" target=\"_blank\" rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-real-estate-business-esum\">\n                <p class=\"general-card__footer-link-text fl-no-margin fl-text-lg-medium\">SELECT AND START LLC<\/p>\n                <i class=\"general-card__footer-link-icon fa fa-angle-right\" aria-hidden=\"true\"><\/i>\n            <\/a>\n        <\/div>\n    <\/div>\n    <div class=\"general-card--newLegalZoom__bottom\">\n        <p>Prefer to work with a lawyer?<\/p>\n<p><a>Find one right now.<\/a><\/p>\n\n    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