Real Estate Business

How Much Does It Cost To Start A Real Estate Business? (In 2024)

Pat Walls

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Updated: July 25th, 2024

Looking to start a real estate business?

But curious about:

how much it costs to start a real estate business?
what are the typical real estate business startup costs?
or the actual cost of starting real estate businesses?

Well, we have the data to prove it, supported by real real estate businesses and how much they actually cost to start.

Let's go over it.

What is the average cost of starting a real estate business?

Based on our data reported by actual real estate business founders, the average cost of starting a real estate business is between $16 and $2,000,000.

Additionally, our data shows that the the median startup costs for a real estate business are around $25K.

Remember, though, not all real estate businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of real estate businesses

Real World Examples: How much does it cost to start a real estate business?

We asked real real estate business founders and business owners how much it actually cost to get started?

Here is what they said:

T. Cory Lewis

Founder of T. C. Lewis & Co. Real Estate ($500K/month)

"We eventually pulled the trigger on our own office space, hired some key folks away from the firm where we had worked, and hit the ground running representing new development projects and perfecting the sale of spec homes. That was all in 2006, and then by 2008, we all know what happened to the market. And we didn’t really know what we were going to do."

Cory Lewis is the founder of T. C. Lewis & Co, a real estate investment and management firm primarily operating in the Appalachian Mountain region of the Southeastern United States.

Read this case study

Read by 11,841 founders

Gino Barbaro

Founder of Jake & Gino ($200K/month)

"We were able to finance the business through our multifamily investments, and the initial cost to start the business was $30,000."

Gino Barbaro is the co-founder of Jake & Gino, a multifamily real estate education company that teaches people how to invest in apartments and become multifamily entrepreneurs.

Read this case study

Read by 3,187 founders

Lavinia

Founder of Livit ($50K/month)

"The total cost of opening the company and having the basic contracts reviewed by lawyers was around $1,000."

Lavinia is the Managing Partner at Livit International, a support ecosystem and service provider for startups and scaleups headquartered in Bali, Indonesia.

Read this case study

Read by 7,725 founders

Lucas Seyhun

Founder of The Farm Soho ($300K/month)

"The entire operation was funded by hard work and a little bit of cash that we gained from our early-stage marketing. Therefore, The Farm is a true do-it-yourself coworking space - approved of course by experts to ensure the most rigorous safety standards."

Lucas Seyhun is the founder of The Farm Soho, a coworking space business that started in 2014 in New York City, and has become a prominent player in the industry.

Read this case study

Read by 4,320 founders

Druce

Founder of Stacked ($60K/month)

"When we first started, we didn’t have much budget – we only had a 3D camera, limited writing experience, and grueling effort to try and get as much awareness as possible. Essentially, we started with around $10,000."

Druce is the co-founder of Stacked, a real estate media company that started in early 2017 with a focus on helping buyers and sellers in Singapore through comprehensive editorial content and videos.

Read this case study

Read by 6,032 founders

Andrew Detweiler

Founder of The Rockville Real Estate Exchange ($15K/month)

"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."

Andy Detweiler is the founder of The Rockville Real Estate Exchange, a real estate brokerage business that started in 2015 and makes approximately $200K per year.

Read this case study

Read by 5,960 founders

Grigory Pekarsky

Founder of Vesta Preferred Realty ($350K/month)

"We have always been fueled by our own money and never needed to take on debt. That has helped us stay alive and also taught us how to pack the strongest punch with limited resources."

Grigory Pekarsky is the founder of Vesta Preferred, a residential real estate business that focuses on relationships and has grown to be one of the top agencies in Chicago.

Read this case study

Read by 8,223 founders

Rachel Hernandez

Founder of Adventures in Mobile Homes ($10K/month)

"I bought the home for $3600 cash. There were no major repairs needed. It was in move-in-ready condition."

Rachel Hernandez is the founder of Adventures in Mobile Homes, a mobile home investing business that generates passive income through buying and selling mobile homes.

Read this case study

Read by 4,022 founders

Jordan Fulmer

Founder of Momentum Property Solutions ($5K/month)

"We had just deflated our bank account to make the down payment on the first house, and it would take us over a year to save up that much again."

Jordan Fulmer is the founder of Momentum Property Solutions, a real estate investing business that focuses on buying, renovating, and selling or renting distressed properties.

Read this case study

Read by 2,987 founders

Brandon Turner

Founder of Open Door Capital ($1.5M/month)

"I put on my inner-Iron Man persona and assembled a team of superheroes around me to take down Thanos. Only, in this case, my team of superheroes was a group of interns and Thanos was a $3,000,000 mobile home park."

Brandon Turner is the founder of Open Door Capital, a real estate investment business that manages over 5,000 rental units and has achieved significant growth in a short time.

Read this case study

Read by 6,078 founders

Enjoyed reading these real world examples?

Our platform is full of case studies of successful real estate businesses that you can learn from.

Starting a real estate business - what you should know:

Launching a real estate business involves various costs that can fluctuate based on several factors, ranging from initial setup to ongoing expenses.

Initial Licensing and Training Costs

Obtaining your real estate license is the first financial hurdle. Licensing courses can range from $300 to $1,000, depending on the state and the program you choose. The exam fee itself often falls between $50 and $200. Don't forget about the fingerprinting and background check, adding another $50 to $100. Post-licensing education may cost an additional $100 to $300 per course.

Office Space and Utilities

Renting office space significantly impacts your budget. A shared co-working space could cost as low as $100 to $500 per month, while leasing a dedicated office space may set you back $1,000 to $2,500 monthly. Utilities such as electricity, internet, and phone services could add an extra $200 to $400 per month.

Marketing and Advertising

Marketing is essential for attracting clients. Initial costs for creating a professional website can vary widely, typically between $500 and $3,000. Monthly marketing expenditures can add up quickly, with digital marketing campaigns ranging from $500 to $2,000 and traditional methods like print ads or billboards costing between $800 and $5,000.

Operational and Administrative Costs

Everyday operations also contribute to your financial layout. Customer Relationship Management (CRM) software subscriptions range from $25 to $300 per month. Hiring administrative staff involves significant costs as well, with salaries for part-time assistants starting at $15 per hour and full-time staff earning upward of $30,000 annually.

Brokerage Fees and Memberships

If you decide to work under a brokerage, you'll need to factor in brokerage fees, often set at 20%-50% of your commission. Joining your local Multiple Listing Service (MLS) and realtor associations could require an initial investment of $300 to $1,500, with annual renewal fees in the range of $200 to $500.

Understanding these cost components will help you budget effectively and set your real estate business on a profitable path.

Potential Costs of Starting a Real Estate Business

Starting a real estate business involves various expenses, from legal and administrative fees to marketing and labor costs. Below is a detailed breakdown of the potential costs you may encounter:

Expense Category	Cost Estimates	Description
Business Registration	$50 - $500	Fees for registering your business depending on the state or country.
Licensing Fees	$150 - $1,000	Costs for obtaining a real estate license, which varies by state or country.
Office Space	$500 - $2,500/month	Renting or leasing an office space; amount varies based on location and size.
Utilities & Internet	$100 - $300/month	Monthly costs for utilities and high-speed internet service.
Website Development	$1,000 - $5,000 one-time fee	Initial costs to develop a professional business website.
Website Hosting	$50 - $300/year	Annual fees for hosting the business website.
Customer Relationship Management (CRM) Software	$25 - $100/user/month	Monthly fees for CRM software to manage client interactions.
Marketing & Advertising	$500 - $5,000/month	Budget for online ads, print ads, social media marketing, and other forms of promotion.
Office Supplies	$200 - $1,000 one-time setup	Initial purchase of office supplies such as furniture, computers, and stationery.
Professional Fees	$1,000 - $5,000/year	Costs for consulting legal and financial professionals (e.g., lawyers, accountants).
Insurance	$500 - $1,500/year	Business insurance coverage, including liability and property insurance.
Technology Tools	$500 - $3,000	Purchasing technology tools such as laptops, printers, and other necessary equipment.
Continuing Education	$200 - $1,000/year	Costs for continuing education courses to stay updated with real estate trends and laws.
Labor Costs	$40,000 - $60,000/year per employee	Salaries for administrative staff or hiring assistants.
Franchise Fee (if applicable)	$5,000 - $50,000 one-time fee	Initial fee for purchasing a real estate franchise (if applicable).
Miscellaneous Expenses	$500 - $2,000	Other miscellaneous startup costs, including travel, memberships, and dues.

This table outlines the typical expenses you should plan for when starting your own real estate business. These numbers can vary widely based on your specific business setup, location, and growth plans.

Part of

Becoming A Real Estate Agent: Everything You Need To Know

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