PURPOSE / MISSION – OUR ‘WHY’

WHY

Why do we wake up every morning and do what we do? What is our "why"? Everyone has a why and it is what drives them to continue pursuing what they are doing. Our why is the same as yours. We want to control our time, our assets, and our future. We want to spend more time with family. Pursue our passions. Be able to provide for loved ones and to donate to causes and charities we care about.

PURPOSE / MISSION

Pioneer Property Partners was created with the mission to:
  • Provide investors, syndicators, sponsors, & other professionals opportunities to invest in thriving real estate markets they may not currently have access to
  • Strategically partner with syndicators, sponsors, & investors to provide services in project and asset management, acquisitions, due diligence assistance, and "boots on the ground" to help close deals.
  • Acquire multi-family properties, reposition them, and generate income for our partners and the company and to reinvest a portion of the proceeds into our own communities and charities we support.
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WHY US?

PPP operates with the following policies to minimize any downside in an investment, including but not limited to:
  • Always acquiring assets with a value-add component and "force" equity rather than bet on the market carrying the asset. As cash flows in competitive markets become hard to come by, value-adds will help us increase our cash flows by extracting intrinsic value and taking advantage of hidden opportunities.
  • Purchasing in class B or C+ neighborhoods that are well positioned to absorb class A tenant bases should there be a downturn in the market.
  • PPP will acquire the longest-term debt available with fixed interest rates.
  • Ensuring that the after repair value (ARV) of any asset has gone through a stringent comps process to ensure that our valuations will be met post-rehab. Additionally, stringent analysis to make sure any rehabs are properly budgeted for and met on time and always budgeting for "what if" scenarios.
  • Conservative capital expenditure, vacancy, and maintenance budgets predicated on condition of property and of course lender requirements.
  • In the event a property can be repositioned to capture more profit, only acquiring properties that could also be repositioned as short-term rentals with no government/municipality restrictions.
  • Never over-paying for an asset on speculation the market will allow the valuation to catch up to the purchase price. PPP will not purchase "future cash flows" only historical ones.
  • Vetting property managers that utilize proactive marketing plans and campaigns to ensure high occupancy levels are maintained with qualified tenants.
  • Target goal is to return “at risk” capital through a refinance, provided it makes sense, to boost cash on cash returns and improve velocity of capital.
  • Minimum yearlong leases unless property is repositioned to a short-term rental
  • Staggering lease termination dates to avoid too much unit turnover at once.
  • Using appropriate strategies during market cycles - what may work at once stage of the market cycle may not work later.
  • Minimum debt service coverage ratios (DSCR) of 1.3. This metric should increase each subsequent year. Lenders typically require between 1.15-1.3
  • Having a strong knowledge of the market cap rates in a subject property's trade area will help us make more informed offers that will later appraise.
  • Being pre-approved with a lender prior to any acquisition for a refinance and understanding the requirements, estimated closing costs, and their seasoning period.
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