Real estate investing is a team sport. The investor who tries to do everything alone — find deals, analyze, negotiate, manage, file taxes — either burns out or makes expensive mistakes. The investor who builds the right team moves faster, makes better decisions, and sleeps at night.
The good news: Most team members are free until you actually do a deal. Brokers are paid by sellers, lenders at closing, PMs from rent. The only upfront cost is a CPA for entity setup ($500-$1,000).
Your Team, In Order of Priority
1. Commercial Real Estate Broker
A good broker brings you deals before they hit the market. In the $500K-$2.5M multifamily space, many of the best deals are off-market or quietly listed.
What to look for:
- Specializes in multifamily (not residential, not retail)
- Active in your target submarkets
- Track record of closed transactions in your price range
Questions to ask:
- "How many multifamily transactions did you close last year in my target area?"
- "What percentage of your deals are off-market?"
- "Can you provide references from buyers (not sellers)?"
Red flag: A broker who pushes residential agents that "also do commercial." The skill sets are fundamentally different.
2. Property Manager
Even if you self-manage initially, having a PM vetted and ready means you can hand off operations when you scale.
Fee structure:
| Fee Type | Typical Range |
|---|---|
| Monthly management | 8-10% of gross collected rent |
| Leasing fee (new tenant) | 50-100% of first month's rent |
| Renewal fee | $150-$300 per renewal |
| Maintenance markup | 10-20% on contractor work |
What to look for:
- Manages properties in your asset class and submarket
- Portfolio of 200-1,000 units (professional enough, small enough to care)
- Uses software (AppFolio, Buildium, RentManager — not spreadsheets)
- Owner portal with real-time financials
Pro tip: Ask for their vacancy rate and average days-to-lease. If they won't share metrics, they're hiding poor performance.
3. Lender
You need pre-qualification before making competitive offers. See our complete financing guide for all loan types.
Two approaches:
- Direct lender: Go to a bank or credit union. Build a relationship.
- Mortgage broker: Shops multiple lenders on your behalf. Broader access.
For your first deal: Start with a local bank where you already have accounts. The relationship matters more than the rate. Make sure you can underwrite deals quickly so you're ready when your lender gives you the green light.
4. Real Estate Attorney
What they do: Review PSAs, structure your entity (LLC), handle title issues, draft promissory notes for seller financing.
Cost: $1,500-$3,000 for PSA review + entity setup. $300-$500/hour ongoing.
When to engage: Before you submit your first LOI. The attorney should review the PSA before you sign, not after. Getting an attorney post-contract limits their ability to negotiate protective terms.
5. Insurance Broker
Houston's insurance market is complex — wind/hail, flood, and liability are separate policies.
What they should provide:
- Property coverage (replacement cost, not ACV)
- General liability ($1M-$2M per occurrence)
- Umbrella/excess liability
- Loss of rents coverage
- Flood insurance quote (if applicable)
| Coverage Level | Typical Cost |
|---|---|
| Standard package | $800-$1,200/unit/year |
| Flood zone add-on | +$200-$500/unit |
| Premium package | $1,200-$1,500/unit/year |
Pro tip: Ask "What's the difference between my options at $1,000/unit vs. $1,200/unit?" Often a 20% premium increase doubles your coverage limits.
6. CPA (Tax Accountant)
A CPA who understands cost segregation, depreciation, 1031 exchanges, and passive loss rules will save you multiples of their fee.
What to look for:
- Specializes in real estate investor taxation
- Experience with cost segregation studies
- Familiar with Texas franchise tax
- Can advise on 1031 exchange timing
Cost: $500-$1,500/year for tax prep. $2,000-$5,000 for a cost segregation study (pays for itself many times over).
When to engage: Before you close your first deal. Entity structure and cost segregation decisions must be made at acquisition — you can't retroactively optimize.
7. Inspector
Cost: $1,500-$3,000 for a multifamily inspection.
Houston-specific inspections to add:
| Inspection | Cost | Why |
|---|---|---|
| Foundation (structural engineer) | $300-$500 | Houston clay soil causes differential settlement |
| Sewer scope (camera) | $200-$400 | Cast iron pipes in pre-1980 buildings corrode |
| Wood-destroying insects | $100-$200 | Termites are year-round in Houston |
Building the Team: Timeline
| Month | Action |
|---|---|
| Month 1 | Join Houston REIA. Interview 3 brokers, 3 PMs, 3 lenders. |
| Month 2 | Select broker (deal flow starts). Get pre-qualified. Engage CPA for entity setup. |
| Month 3 | Broker sending deals. Lender has pre-qual letter. Attorney on standby. PM ready for closing. |
The Cost of NOT Having a Team
- No broker: You see deals on LoopNet 30 days after connected investors made offers.
- No PM: You're answering maintenance calls at 2am and chasing rent on the 5th.
- No attorney: You sign a PSA with 5-day inspection instead of 21, miss a $40K foundation issue.
- No CPA: You miss a cost segregation study saving $15K in Year 1 taxes. You also miss the annual property tax protest that could save $5K-$20K per year.
- No insurance broker: You're paying $400/unit more than necessary.
Build the team first. The deals follow.
Related Reading
- Financing Your First (or Next) Multifamily Property — Every loan option for small multifamily deals so you can guide lender conversations
- The Complete Guide to 1031 Exchanges for Multifamily Investors — What your CPA and QI need to coordinate when you sell and reinvest
- How to Underwrite a Multifamily Deal in 30 Minutes — The analysis framework your team will execute on every deal
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