As the year draws to a close, you’re likely to reflect. (And if not, you probably should!)

Knowing who to partner with as a new real estate investor isn’t easy. As an owner-investor, due diligence rests on your shoulders from the beginning. To be a passive investor, you must first find the right property management company. The quality and integrity of their business will guide your success.

Now, there are many elements to vetting a management company – looking at their public information, reviewing their quarterly and annual reports, and soliciting reviews from other investors. But perhaps the most critical step for a new investor is asking questions.

Property managers play a crucial role in the management and maintenance of rental properties on behalf of property owners. Inexperienced investors may not fully understand the nature of their role and all they do to support the success of their investments.

Plenty of inexperienced real estate investors choose to fly solo. They imagine doing it all themselves will save money and leave more rental income in their pocket each month. While this is true, their overall portfolio will suffer in the end. Doing it alone stunts and limits your growth, which is critical for building lasting wealth across multiple income streams.

Though some real estate investors would balk at the typical commission received by a property management team – usually around 8 percent – sharp investors recognize the real value in a great property management structure.

Experienced real estate investors know the value of quality property management. Even non-investors are cognizant of the stereotypes and horror stories surrounding incompetent, bad, and downright mean property managers!

At Memphis Invest, each and every one of our teams, from customer service representatives and property management to sales and renovations, work together to create a stand-out “WOW” experience for everyone we come in contact with. We know that we couldn’t do it without our investors, vendors, residents, and these dedicated teams.

I was lucky enough to be featured this week on a fantastic Podcast that debuted earlier this year from the founder of BiggerPockets.com, Josh Dorkin.  The show is co-hosted by Brandon Turner and they have done a phenomenal job of creating a fun and informative podcast that has rocketed to the #1 spot on iTunes for real estate podcasts.  Before this becomes one huge infomercial for their podcast and website, I wanted to share with you the podcast and let you listen for yourself.  I had a great time joining them and the interview gets into a lot of topics covering our business.

When you're ready to start purchasing rental properties, you have a big decision to make: Do you hire a professional property management company or take care of it yourself? Each option has its pros and cons, and there is no clear universal answer. Which direction you should go is dependent on your financial situation, your experience, and to what extent you're wanting to be involved with your investments. It is also dependent in large part if you decide to be an Out-of-Area Investor.  Many real estate investors choose to buy properties in other parts of the country because of better returns, less expensive pricing and more stable rental environments.