Before you close your first deal, you need to prepare your business. That means understanding self-employment, choosing the right entity, setting up simple marketing, building your team, and developing the skills that actually make you money.

Brian Gibbons lays out thirteen practical steps for getting your real estate business ready to operate.

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1. Understand Self-Employment

If you’ve never had a self-employed business before, it’s important to understand: being self-employed means you’re all by yourself — but you get a lot of benefits.

Many of the funds you pay for expenses as a self-employed person can be written off as deductions, as long as you are an accredited real estate professional with the IRS. The threshold is 750 hours documented. Visit irs.gov for the specific requirements.

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2. Choose the Right Entity

The entity you use depends on your strategy. This is one of the most important business decisions you’ll make.

Strategy	Recommended Entity	Why
Creative Financing (lease purchase, subject-to, etc.)	LLC	Flexible, liability protection, pass-through taxation
Wholesaling	Corporation (C or S Corp)	Properties classified as dealer properties instead of investor properties

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3. Keep Your Marketing Plan Simple

In the beginning, your marketing doesn’t need to be complicated. Start with the basics:

• Get a website — a simple one-page site is enough to start
• Get business cards — with a clear message about what you do
• Use postcards — to motivated sellers in your target area
• Get back to people quickly — speed of response matters more than perfect systems

A good investment: Getting a live answering service that can take information from motivated seller prospects. When a seller calls, you want a real person answering — not voicemail.

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4. Build Your Team — Start with Two Key Members

The two most important members of your team in the beginning are:

• Your title company — they need to understand your contracts and creative deal structures
• Your contract attorney — they need to like creative financing (lease options, subject-to, land trusts, private lending)

Where to find them: Ask at your REI Association meetings who the best are for creative financing. Other investors have already vetted these professionals.

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5. Study NLP and Negotiation Techniques

This is the most important skill you can have: what to say and then how to write up a quick offer.

Study NLP (Neuro-Linguistic Programming) and negotiation techniques specifically for motivated sellers. The ability to guide a conversation and structure a deal on the spot is what separates investors who close from investors who collect business cards.

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6. Everyone Can Be a Private Lender

Be aware that everyone can be a private lender using their IRA to lend you money for your business.

This opens up a massive pool of potential capital. Friends, family, and networking contacts may have retirement funds sitting in accounts earning minimal returns. Your deal can offer them a better return while giving you the funding you need.

For more on this strategy, see our page on Funding Sources.

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7. Successful Business Owners Want to Invest With You

Many successful business owners are willing to invest with you on joint venture projects, such as fix and flips.

They have capital but not the time or expertise to find and manage deals. You have the deal flow and the management ability. A JV structure lets you both profit.

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8. Have a USP (Unique Selling Proposition)

Your USP answers the question: What do you do?

Your USP should be clear enough that anyone — a seller, a renter, a potential lender — immediately understands how you can help them.

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9. Understand the Seasons

Real estate has seasons. Understanding them gives you an advantage.

Season	Best For
Winter	Buying — less competition, more motivated sellers
Spring & Summer	Selling — more buyers, higher prices

Focus on the seasons. Plan your acquisitions for winter and your dispositions for spring and summer.

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10. Hang Around People Who Want You to Succeed

Your environment matters. Surround yourself with people who have an interest in seeing you succeed.

Consider starting a mastermind group through Meetup with non-competing business owners — such as insurance agents and financial planners. They can send you people, and you can send them people.

Read: Think and Grow Rich by Napoleon Hill — the original mastermind book.

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11. Read Motivating Writing

Feed your mind with material that keeps you motivated and focused. Authors Brian Gibbons recommends:

• Tony Robbins — peak performance and psychology of success
• Robert Kiyosaki — financial education and real estate investing mindset

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12. Go to SCORE

SCORE is a government agency that helps small businesses get started. They can help you with a sophisticated business plan and marketing plan — often at no cost.

SCORE connects you with volunteer mentors who have real business experience. This is a free resource many investors overlook.

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13. Wear a Button That Says “I Buy Houses — Ask Me How!”

Sometimes the simplest marketing works best. Wear a button that says “I buy houses — ask me how!” Smile and see who asks you how.

This is networking in its purest form. It starts conversations wherever you go — the grocery store, the gym, your kid’s soccer game. You never know who has a house they need to sell.

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Key Takeaways

• Self-employment has benefits: deductions are available if you qualify as a real estate professional (750+ hours documented)
• Choose the right entity: LLC for creative financing, corporation for wholesaling (dealer properties)
• Keep marketing simple: website, business cards, postcards, and a live answering service
• Start your team with two members: title company and contract attorney who understand creative financing
• NLP and negotiation are the most important skills you can develop
• Everyone can be a private lender using their IRA
• Business owners want to invest in JV projects like fix and flips
• Have a clear USP that explains who you help and how
• Understand the seasons: buy in winter, sell in spring and summer
• Build a mastermind with non-competing business owners
• Read motivating material from Tony Robbins and Robert Kiyosaki
• Use SCORE for free business plan help
• Wear a button that starts conversations — “I buy houses — ask me how!”

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• SCORE Business Plan & Mentoring Hub: https://www.score.org/plan-start/ — This is the best starting point for getting matched with a free mentor to help you build your business plan .

• Find a Local SCORE Chapter: https://www.score.org/find-location — Use this to find free, in-person mentoring and workshops in your area .

• Search for Business Planning Workshops: https://www.score.org/business-education — Browse upcoming free or low-cost live webinars and workshops, such as “Building Your Business Model, Plan and Strategy” or “Preparing Your Business Plan” .

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Disclaimer: This page is for educational and informational purposes only. It does not constitute legal, financial, or tax advice. Entity selection, tax treatment, and business planning involve complex considerations that vary by individual and jurisdiction. Always consult a licensed attorney, CPA, and financial advisor before making business decisions.