Investment Through Integrity: The Core Values Driving PEM’s 30-Year Success

Thirty years ago, I started with a simple belief: if you do what you say you will do, take care of what’s entrusted to you, and treat people with respect, success will follow.

Today, that belief has transformed into more than $2 billion in transactions across 25,000+ units. But the numbers only tell part of the story. What truly drives our success are the values that guide how we generate wealth through strategic multifamily investments while operating thriving communities that enhance residents’ lives.

These aren’t abstract principles—they’re the practical foundation that has enabled PEM to deliver consistent results across changing market conditions. For Professional Equity Management, this understanding has shaped every decision across three decades. While market cycles have come and gone, five core values remain constant: Integrity, Stewardship, Respect, Growth, and Urgency. These principles have guided PEM through several distinct economic downturns while achieving an average IRR exceeding 20% since inception and generating over $300 million in gains for our investors.

The journey from that first Detroit duplex taught me that real estate isn’t just about properties—it’s about the values that guide every decision. As hold periods extend and markets evolve, the quick-flip mentality has given way to something more enduring: creating sustainable long-term growth.

Integrity: When Words Match Actions

Integrity for PEM was founded upon a practical reality—too many vendors and employees simply didn’t do what they said they would do. I knew that to meet our partners’ expectations, trust our employees, and serve our residents, we needed to build something different—a culture where doing what we say we will do isn’t negotiable, even when it’s costly.

This commitment shows up when problems arise. At one of our properties, we discovered that a property manager had leased units to unqualified residents. The solution wasn’t simple—in some cases, we had to pay residents to vacate. But here’s what mattered: PEM absorbed every dollar of lost rent until those units were properly re-leased.

Why? Because the hiring decision was ours. The oversight responsibility was ours. Our investors trusted us to protect their capital, and that trust isn’t negotiable. When you manage $1.2 billion in assets, integrity isn’t just about big decisions—it’s about taking responsibility when things go wrong.

This same principle applies to every investor interaction. Whether it’s providing transparent updates during market volatility, making the hard call to pass on a deal that doesn’t meet our standards, or taking responsibility when our decisions don’t go as planned—integrity means doing what’s right even when it’s expensive or unpopular. When you’re managing investor capital, there’s no room for shortcuts or convenient half-truths. Our disciplined approach to hold periods—typically targeting 3-5 years or longer while maintaining flexibility for market conditions—reflects this commitment to creating sustainable value rather than chasing quick returns that might compromise long-term relationships.

But integrity must be demonstrated through action. True stewardship means taking responsibility not just for what you promise, but for everything entrusted to your care.

Stewardship: To Much Is Given, Much Is Required

Stewardship directly relates to the principle that “to much is given, much is required.” I have always believed that if you take care of the real estate, it will take care of you. We focus on doing the right thing and taking care of the responsibilities we’ve been given—from the real estate, our investors, and our residents—to honor the responsibility we’ve assumed to buy, own, and operate these homes for our residents and partners.

This philosophy was tested when unexpected tax issues emerged after we closed the sale of several successful properties. The typical industry response would be issuing capital calls to investors for these unanticipated costs. Instead, PEM absorbed these expenses internally. Our reasoning was straightforward: everyone had done exceptionally well on these exits, generating strong returns that exceeded our projections. Why diminish what had been outstanding investment experiences with administrative headaches over costs that, while legitimate, were ultimately our responsibility to resolve?

Our acquisition strategy reflects this same mindset. We’ve walked away from dozens of deals that met our financial criteria but failed our stewardship test—properties where we couldn’t see a clear path to enhancing the resident experience or markets where we couldn’t commit to long-term presence. Better to preserve capital for the right opportunity than compromise our standards for deployment pressure.

When you view each investment decision through the lens of long-term stewardship rather than short-term returns, it changes how you evaluate opportunities, structure deals, and communicate with partners. This approach has helped us maintain partnerships spanning decades—relationships that have generated far more value than any single transaction.

This stewardship approach applies to everything we do, from major financial decisions to daily property care. The mathematics are compelling: Every dollar invested in preventive maintenance saves $5-10 in emergency repairs. But this isn’t just about spreadsheets—it’s about the peace of mind that comes from knowing every property is cared for as if it were our own, and every investor relationship is protected as if it were family. When properties with superior retention strategies experience vacancy rates 25% lower than competitors, the mathematics of stewardship become undeniable.

Yet even the most carefully stewarded properties and thoughtfully structured partnerships depend entirely on the people who bring them to life. Without genuine respect for every stakeholder in this ecosystem, the best intentions crumble under the pressure of daily realities.

Respect: The Foundation of Lasting Success

Property management is a relationship business at its core. Success depends on building trust with residents who are choosing to make your property their home, investors who are trusting you with their capital, and team members who are dedicating their careers to your mission. Without genuine respect for all these stakeholders, sustainable success becomes impossible.

Here’s what I’ve learned: turnover costs average nearly $4,000 per unit, but those are just numbers. The real cost of disrespect is the talent that walks out the door, the residents who don’t renew, the relationships that never form, and the opportunities that never materialize.

This respect shows up in how we handle every interaction. With residents, it means treating maintenance requests with urgency, being transparent about policies, and recognizing that our properties are their homes. With investors, it means clear communication about both successes and challenges, aligned interests, and treating their capital as carefully as our own. With team members, it means creating an environment where people can grow and succeed.

Even in difficult situations, respect remains non-negotiable. We’ve had to part ways with employees who didn’t meet our standards, and we’ve faced challenging resident situations that required firm boundaries. In these moments, the easy response might be retaliation or public criticism. Instead, we handle these transitions with professionalism and dignity, even when others don’t reciprocate.

This approach extends to how we communicate with investors during challenging periods. Rather than deflecting responsibility or minimizing problems, we believe in transparent communication that treats investors as partners who deserve to understand both successes and setbacks. When market conditions shift or unexpected issues arise, our investors hear from us directly—not through lawyers or carefully worded notices designed to limit liability.

Why maintain respect even in challenging situations? Because our reputation isn’t built on how we treat people at their best—it’s defined by how we handle the worst moments. Every interaction reflects our values and influences our ability to attract quality residents, retain talented team members, and build lasting investor relationships.

The culture we’ve built reflects these values, and we’re encouraged to see the broader industry moving in a similar direction. In 2024, multifamily operators recorded 50% more resident compliments than complaints—the third-highest sentiment rating in over 20 years. This industry trend validates what we’ve known for decades: when you prioritize respect and genuine care for residents, it shows up in their satisfaction and loyalty.

This foundation of respect builds the trust essential for success, but respect alone doesn’t drive progress. For an organization to truly excel across market shifts, it must be built on a culture of continuous growth.

Growth: Investing in People and Performance

Property management attracts young, ambitious people. They start in leasing and often grow into leaders running multiple properties. This career path can be both financially rewarding and remarkably fast-paced. But here’s what I learned long ago: if you want to attract and keep the best people in this industry, you need to offer more than just a paycheck and a pizza. The best people want to grow. They want to look back each year and see how they’ve developed—professionally, personally, financially.

This philosophy shows up clearly in how we develop our team. We once hired someone as a temporary administrative assistant who was previously managing a family entertainment center. Over fifteen years with PEM, they had grown to become not just our Executive Assistant, but an equity partner in the company. This journey from temp to owner exemplifies why we invest so heavily in our people.

This isn’t just a feel-good story—it’s a business necessity driven by how rapidly our industry has evolved. The multifamily landscape that person joined in 2006 bears little resemblance to today’s market. Where residents once expected basic “roof and four walls” housing, today 75% of residents prioritize amenities when deciding to rent or renew their lease. This complete shift in expectations reflects the growth mindset we’ve cultivated—continuously evolving our properties and services to meet rising standards rather than maintaining the status quo.

This same commitment to growth extends to how we approach investments. Investing in our team’s development enables more sophisticated deal evaluation, deeper market analysis, and enhanced execution capabilities that directly impact investment performance. The market has recognized the value of this operational focus, with institutional investors increasingly seeking partners who can deliver both strategic vision and hands-on execution. Every team member who grows within PEM represents irreplaceable institutional knowledge that directly impacts NOI.

But all the growth and development in the world means nothing if you can’t execute when it matters most. Markets don’t wait for convenient timing, residents don’t schedule their emergencies, and investors don’t pause their concerns for business hours. Excellence demands urgency.

Urgency: Excellence Under Pressure

No one likes to wait for a broken fridge, backed-up toilet, or water leak. I’ve seen it firsthand—in order to attract quality residents and retain skilled maintenance teams, we needed to create a culture where property care isn’t just urgent for residents, but where we urgently support the teams handling these issues. When problems arise, stress follows. If we don’t stand alongside our team members in those moments, people burn out, disengage, and leave.

Prompt maintenance response is consistently identified as one of the most critical factors in lease renewal decisions. Nearly half of negative renewal reviews cite unresolved maintenance issues—making it the single biggest driver of resident departures. But here’s what the data doesn’t capture: the maintenance technician who feels supported will go the extra mile. The property manager who knows the Home Office has her back will handle that difficult resident conversation with grace.

I’ve been awakened at 3 AM on vacation more times than I can count. Employee crisis. Resident emergency. Investor concern. Every time, I stop what I’m doing and engage. But individual availability only scales so far.

That’s why when properties face staffing crises, we don’t let service standards slip. We fly in experienced team members from other properties—sometimes across multiple states. Yes, it’s expensive and disruptive. But when you consider that turnover typically costs several thousand dollars per unit while retention builds the stable communities that drive long-term success, this rapid response capability becomes an investment in our residents and our business. This approach has helped us maintain 95%+ occupancy even through operational challenges.

This same urgency that drives our operational excellence extends seamlessly into strategic decision-making. When compelling acquisition opportunities arise, we can move from initial review to signed contract in days, not weeks—a speed that often makes the difference in competitive situations. Whether it’s a 3 AM resident emergency or a time-sensitive investment opportunity, the principle remains the same: when something matters, we respond immediately. When 86% of investors across industries say a company’s agility in managing through crisis is important to their investment decisions, our ability to respond quickly to changing conditions becomes a competitive advantage that benefits every stakeholder.

Values in Action: The Foundation That Endures

These five values don’t exist in isolation—they work together, each one reinforcing and amplifying the others. When we closed our first fund in May 2025 with six institutional-quality properties totaling $347 million, it wasn’t because we followed a playbook or deployed sophisticated financial models. It was because every acquisition decision, every operational choice, and every team member we brought on board reflected our commitment to doing what’s right.

Looking ahead, the market presents both challenges and opportunities. Interest rates worry 80% of multifamily investors. Construction starts have plummeted 74% from their 2021 peak. Yet 42% of global investors named multifamily as their preferred asset class in 2024—up from just 30% in 2023, and Class A occupancy has climbed 170 basis points year-over-year—the strongest growth across any price tier. In this environment, success won’t come from abandoning principles for quick gains. It will come to those who hold fast to what works.

Private equity firms are increasingly recognizing the value of operational excellence. This shift toward hands-on management validates what we’ve known for 30 years: in real estate, how you operate matters as much as what you buy. The ability to move fast while maintaining discipline separates the leaders from the followers.

The results speak for themselves. Apartment net operating income has grown 61.5% above its pre-2008 peak, compared to just 26.7% for other commercial real estate. This outperformance reflects what happens when experienced teams execute consistently across market cycles. We see this dynamic in our core markets as well—the South region absorbed an incredible 369,533 units in 2024 alone, yet despite this massive supply influx, regional occupancy levels remained stable at 94.3%. Success in such environments requires teams that can differentiate through superior execution.

But our vision extends beyond just being successful—we’re working to transform how this industry thinks about the relationship between values and returns. As I often remind our team, “to much is given, much is required.” The trust our investors place in us, the homes we provide for thousands of residents, the careers we create for our team members—these carry weight. Meeting these responsibilities requires more than financial engineering or lucky timing. It requires values that guide every decision.

Our promise is simple: Disciplined investments. Operational excellence. Trusted partnership.

After three decades in this business, one thing is clear: success in multifamily investment isn’t about chasing trends or complex strategies. It’s about fundamentals, consistently applied. Do what you say. Take care of what’s entrusted to you. Respect the people who make it possible. Never stop growing. And when challenges hit—as they always do—respond with urgency and support.

These values built PEM, and they will carry us forward as we work toward our vision: to be the most trusted investment partner and operator of multifamily assets, known for integrity, performance, and exceptional service across all market cycles.

Your Next Step

The principles that have guided PEM for three decades aren’t changing. In an industry often focused on financial engineering and quick exits, we believe there’s enduring value in staying true to the fundamentals.

If you’re an investor seeking more than just returns—if you want a partner whose actions consistently match their words—I invite you to learn more about our approach.

Whether you’re interested in our investment opportunities, want to understand how values-driven real estate investment can enhance your portfolio, or simply wish to explore what a true partnership in multifamily investment looks like, we’re here for that conversation.

At PEM, integrity isn’t just a value. It’s our competitive advantage.

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Paul Mashni is the Founder and CEO of Professional Equity Management (PEM), a vertically integrated real estate investment firm specializing in multifamily properties. With over 30 years of experience and more than 25,000 apartment units acquired, Paul has successfully navigated five downturns while maintaining an average IRR of 20%+ since inception. His background in accounting and finance, along with his law degree from Wayne State University, informs PEM’s disciplined approach to investments. Paul holds a Bachelor of Science in Accounting and an MBA in Finance from Michigan State University.

Would you like to learn more about PEM’s investment opportunities? Contact our team to discuss how our approach might align with your investment goals.