Investment

The Principals of PLP have successfully invested in multifamily real estate for more than 30 years. Depending on deal-flow and our own liquidity, PLP usually invests 50% or more of the required equity in each project, and we invite participation from outside investors. The following is a brief summary of our investment approach.

Targeting Mid-Teen Returns with Conservative Leverage

PLP does not believe that sudden shifts in markets can be consistently predicted. We do believe that maintaining relatively low leverage on well-managed income properties ensures steady wealth creation, and is the only proven method of minimizing risks to partners during inevitable downturns. Therefore, PLP targets properties that can provide attractive cash-on-cash returns in the mid-teens with low debt (50-65% of purchase price).

Focused Market Niche

We are tightly focused geographically, clustering purchases in Southern California and in the Seattle area. We are focused on value-add C and B communities that are under-managed and under-improved within targeted sub markets. Finally, we focus on positioning our assets -- formulating our renovation programs, management approach, and marketing strategy to attract the middle to upper-middle segment within each sub-market.

Disciplined Approach

As the largest investor in our properties, we are aligned with our equity partners. Because we enjoy a steady cash flow from our low leveraged portfolio, we don't need to churn deals or to invest in projects with high risk or marginal returns to keep the doors open. Our sole motivation is to put our equity and our partners' equity to work for attractive returns. Consequently, we do not deviate from rigorous criteria when evaluating potential acquisitions, and we limit our purchases to the small fraction of deals that meet this criteria.