How to Build a [Real Estate Investing](/blog/brrrr-strategy-guide) Team: The 7 Key Players You Need (and How to Vet Each One)

The difference between investors who scale to 50+ units and those who stall at 2 usually isn't capital, market knowledge, or deal flow. It's their team.

A solo investor can maybe handle 1–3 properties through sheer willpower. But beyond that, the complexity compounds: tax strategy bleeds into entity structure, which affects financing options, which changes your acquisition criteria. You need specialists who talk to each other.

Here's the reality: your team will either multiply your returns or quietly drain them. A bad property manager costs you 15–20% of gross rent in hidden vacancies and deferred maintenance. A generic CPA who doesn't understand [cost segregation](/blog/depreciation-real-estate-guide) leaves $10,000–$50,000 on the table per property. An agent who doesn't run numbers sends you deals that look good on Zillow but bleed cash.

This guide covers the seven roles every serious real estate investor needs, in the order you should recruit them, with specific vetting questions, red flags, and benchmarks.

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Role #1: Investor-Friendly Real Estate Agent

Why They Come First

Your agent shapes your deal pipeline. A great investor agent doesn't just find listings — they find off-market deals, run comps with an investor lens (price per unit, cap rate, rent-to-price ratio), and flag issues before you're under contract.

What "Investor-Friendly" Actually Means

An investor-friendly agent is not just an agent who "works with investors." It's an agent who:

• Owns rental property themselves (ideally 3+ units)
• Runs numbers before sending you deals — they know your buy box and filter accordingly
• Has relationships with wholesalers, estate attorneys, and distressed-property sources
• Understands 1031 exchanges, subject-to deals, and seller financing
• Can comp by rent, not just sale price

Vetting Questions to Ask

Where to Find Them

• BiggerPockets agent finder — search by market and investment focus
• Local REIA meetings — ask the room who they use; the same 2–3 names will surface
• Interview 5, hire 1 — this is non-negotiable. The spread between a mediocre and excellent agent is enormous.

Compensation Structure

Most buyer's agents work on commission (2.5–3% of purchase price). For investors doing volume, negotiate:

• Reduced commission on repeat deals (2% after the 3rd transaction)
• Flat fee for off-market deals you source ($2,000–$5,000)
• First look at pocket listings in exchange for loyalty

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Role #2: Lender (or Lending Team)

Why You Need Multiple Lending Relationships

No single lender covers every scenario. Your lending stack should include:

Vetting Questions for Each Lender

• What's your minimum DSCR? (1.2 is standard; 1.0 is aggressive)
• Do you count rental income from the subject property for qualification?
• What's your seasoning period for cash-out refinances? (6 months is ideal for BRRRR)
• Can you close in under 30 days? Under 21?
• What are your prepayment penalties? (3-year stepdown is common for DSCR; avoid 5-year lockouts)
• Do you sell your loans or service in-house?

Red Flags

• Won't give you a rate sheet until you formally apply
• Charges excessive junk fees (processing, admin, courier fees totaling > $1,500)
• Can't explain the difference between pre-qualification and pre-approval
• Doesn't return calls within 4 hours on business days

Pro Tip: The Pre-Approval Stack

Before you start making offers, get pre-approved with at least two lenders — one conventional and one DSCR or portfolio. This gives you:

• Backup if one lender's underwriting falls through
• Leverage to negotiate rates
• Flexibility to match the right loan to each deal

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Role #3: Property Manager

The Math That Matters

Property management fees typically run 8–12% of gross rent for single-family and 5–8% for multifamily (20+ units). But the real cost of a property manager isn't the fee — it's the delta between a good and bad one.

Cost of a bad property manager (per unit, per year):

• Extra 1 month vacancy: $1,200–$2,000
• Below-market rents (not raising rents annually): $600–$1,200
• Deferred maintenance creating bigger repairs: $500–$2,000
• Tenant turnover from poor communication: $2,000–$4,000
• Total hidden cost: $4,300–$9,200 per unit

A "cheap" PM charging 7% who causes these issues costs you far more than an excellent PM charging 10%.

Vetting Questions

Red Flags

• Won't provide references from current investor clients
• Charges excessive lease renewal fees (> $200)
• Marks up maintenance significantly (> 15% over contractor cost)
• Doesn't do annual property inspections
• Owner statements are late or unclear
• They manage their own properties and yours (conflict of interest on contractor allocation)

Self-Management vs. Professional PM Decision Matrix

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Role #4: CPA (Tax Strategist)

Why a Generic CPA Will Cost You Money

The average CPA understands W-2 income, standard deductions, and maybe some small business stuff. [Real estate tax strategy](/blog/1031-exchange-for-beginners) is a different universe:

• Cost segregation studies can accelerate $50,000–$200,000+ in depreciation into years 1–5 on a single property
• Real Estate Professional Status (REPS) can unlock unlimited passive loss deductions against W-2 income
• 1031 exchange timing has rigid deadlines (45 days identification, 180 days closing)
• Entity structuring (LLC vs S-Corp vs LP) has different implications for self-employment tax, liability, and lending
• Short-term rental loophole (material participation + < 7-day average stay) creates unique deductions

A CPA who doesn't specialize in real estate will miss most of these.

Vetting Questions

• How many real estate investor clients do you have? (Want: 30+)
• Have you filed REPS status for clients? (Want: Yes, multiple)
• Walk me through how you'd approach cost segregation on a $400K property. (Want: specific dollar estimates and timeline)
• Do you work with a cost segregation engineering firm? (Want: named partnership)
• How do you feel about aggressive but legal tax positions? (Want: "I look for every legal deduction" — not "I play it safe")
• What's your fee structure? (Expect: $1,500–$5,000/year for investors with 5–20 properties)

Red Flags

• Doesn't know what REPS is
• Has never done a cost segregation study
• Advises putting everything in an S-Corp without analyzing your specific situation
• Charges by the hour with no estimate range
• Files extensions every year without proactive planning

The ROI Test

A great real estate CPA should save you at minimum 3–5x their fee in the first year. If your CPA costs $3,000/year and can't point to at least $9,000–$15,000 in tax savings specific to your portfolio, find a new CPA.

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Role #5: Real Estate Attorney

What They Handle

• Entity formation — LLCs, land trusts, series LLCs (in applicable states)
• Contract review — purchase agreements, partnership agreements, JV structures
• Evictions — in states where you need an attorney (NY, NJ, IL, etc.)
• Title issues — quiet title actions, lien disputes, boundary issues
• Asset protection — structuring entities to shield personal assets
• Estate planning — how your portfolio transfers at death or incapacity

Specialization Matters

Real estate law has subspecialties. You may need different attorneys for:

Vetting Questions

• What percentage of your practice is real estate? (Want: > 50%)
• Do you own investment property yourself?
• What entity structure would you recommend for an investor with 5 properties in [state]? (Want: nuanced answer, not one-size-fits-all)
• What's your hourly rate vs. flat fee for common services? (Expect: $250–$500/hr or flat fees for LLC formation $500–$1,500)
• Can you handle evictions in my market?

Cost Benchmarks

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Role #6: Contractor (and Handyman)

The Two-Tier System

You need two levels of contractor relationships:

1. Handyman — For turnovers, minor repairs, preventive maintenance ($30–$75/hr)
2. General Contractor (GC) — For renovations, rehabs, major capital improvements (bid-based)

Vetting Your General Contractor

The Bid Process

Always get 3 bids. Here's how to compare them fairly:

• Use a detailed scope of work (SOW) — identical document to all bidders
• Break the SOW into line items: demo, framing, electrical, plumbing, HVAC, finishes, etc.
• Compare line items, not just totals — a low total bid might hide change-order traps

Contractor Red Flags

• Wants > 25% upfront before any work begins
• Can't provide proof of insurance
• No written contract or vague scope of work
• Bad reviews on Google/BBB specifically mentioning timeline and communication
• Doesn't pull permits for work that requires them
• Pressures you to pay in cash

Payment Structure Best Practices

Never pay ahead of completed work. The final 10% retention is your leverage for punch list items.

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Role #7: Insurance Agent

Why Most Investors Are Underinsured

Standard homeowner's insurance doesn't cover rental properties. If you have a tenant-occupied property on a homeowner's policy, your claim will likely be denied. You need:

• Landlord/dwelling policy — covers the structure, liability, and loss of rent
• Umbrella policy — additional [liability coverage](/blog/homeowners-insurance-complete-guide) ($1–2M minimum for investors)
• Builder's risk — during renovation (often required by lenders)
• [Flood insurance](/blog/hurricane-insurance-guide) — if in a flood zone (FEMA or private)

Vetting Questions

• Do you specialize in investment property insurance?
• How many landlord policies do you write per year? (Want: 50+)
• Can you bundle my portfolio for a discount?
• What's your claims process? (Want: dedicated adjuster, 24/7 claims line)
• Do you offer loss-of-rent coverage? (Essential — covers income during repairs)
• What's excluded? (Always ask this explicitly)

Cost Benchmarks

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The Assembly Sequence: Build Your Team in This Order

1. Agent — they'll refer you to lenders, attorneys, and PMs
2. Lender — get pre-approved before you look at deals
3. CPA — set up entity structure and tax strategy BEFORE your first acquisition
4. Attorney — form entities and review your first purchase contract
5. Insurance agent — bind coverage before closing
6. Property manager — have them lined up before you close (especially if out of state)
7. Contractor — build relationships through small jobs before you need a big rehab

The Cross-Reference Test

Your team members should know each other. When your agent recommends a lender who recommends a PM who recommends a contractor — and your CPA and attorney are looped in — deals close faster, problems get solved quicker, and everyone's incentives align.

Ask each team member: "Who else do you work with regularly on investor deals?" If the same names come up across multiple team members, you've found a proven local ecosystem.

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What a Great Team Looks Like in Practice

Here's how a well-oiled investor team handles a typical BRRRR deal:

Total time: ~6 months from acquisition to stabilized cash-flowing asset with most or all capital recovered.

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Final Advice: Invest in Relationships, Not Transactions

The investors who build the best teams treat their team members as long-term partners, not vendors. That means:

• Pay on time, every time — especially contractors
• Refer business to your team members — they'll prioritize you
• Communicate clearly — share your goals, buy box, and timeline
• Be loyal but not blind — stay with good performers, replace bad ones quickly
• Review annually — are your team members still the best fit for your current stage?

Your team is your competitive advantage. Two investors with the same capital, in the same market, will get radically different results based on the quality of the people around them.

Build your team deliberately, vet them rigorously, and treat them well. Everything else gets easier.

Related Articles

• 1031 Exchange for Beginners: Complete Guide to Deferring Capital Gains Taxes
• 1031 Exchange: Defer Taxes, Build Wealth Faster
• Cost Segregation Study Guide: How Real Estate Investors Accelerate Depreciation to Save Thousands