About

OneTake Investments is a real estate investment company

We invest in and operate affordable housing communities in the southeast United States. It is our mission to generate above-average risk-adjusted returns for our limited partners and to increase the supply of available affordable housing in America.

Korey White, CFA

Chief Investment Officer

Korey White, CFA, is a successful investor who has bought and sold communities with over 300 total mobile home spaces in NC, delivering high double-digit returns for their investors. With a Chemical Engineering degree from Auburn University and an MBA from Goizueta Business School at Emory University, Korey is well-equipped to tackle even the most complex challenges in the field. Prior to becoming a full-time investor, he spent seven years in banking, working on the balance sheet management and internal M&A teams at BB&T. Additionally, Korey has experience as a college basketball coach and engineer for ExxonMobil before attending Business School. With his unique blend of analytical and strategic thinking, Korey is poised to continue achieving success in the dynamic world of mobile home park investing.

Investment Philosophy

We have a set of core principles and beliefs that guide our investment decision making processes. Our core principles are: (1) picking the right opponent is almost the most important thing, (2) if you are a jack of all trades, you are a master of none, and (3) money is not the only currency that can be used to execute a transaction. Risk-adjusted return serves as a crucial metric for assessing the profitability and quality of an investment choice. It quantifies the potential profit while considering the associated risks, providing a comprehensive evaluation. In investing, relative performance holds paramount importance, as it determines the success and effectiveness of investment decisions.

One of the key lessons I learned at the start of my coaching career was the crucial role scheduling plays in achieving success. It's not necessary to be better than every team; you just need to outperform the teams you face. By carefully selecting your opponents, you increase your chances of finding success. Consequently, we veer away from traditional markets, which tend to be efficient and offer limited opportunities for above-average risk-adjusted returns. In such markets, there is an abundance of individuals armed with valuable information. However, not all markets operate efficiently. Inefficient markets present exceptional prospects for above-average risk-adjusted returns. The market's inefficiencies create information advantages that can be leveraged to incrementally enhance average risk-adjusted returns, resulting in above-average performance. Our focus lies in capitalizing on these inefficiencies by cultivating superior localized knowledge of specific markets. We strengthen relationships with asset owners and adeptly structure deals that meet their satisfaction while maximizing returns for our investors.

Warren Buffet once wisely stated, "Risk comes from not knowing what you are doing." This insight highlights the significance of specialization in achieving maximum risk-adjusted returns. By narrowing our focus to a specific asset class, we minimize risk without compromising potential returns. Our entire energy and dedication are directed towards identifying investments within that particular asset class. Our upbringing was deeply intertwined with this asset class, and throughout our adult life, we have dedicated ourselves to becoming experts in the field. We firmly believe in sticking with what we know best, leveraging our specialized knowledge to make informed investment decisions.

In order to enhance risk-adjusted returns, our approach involves strategically identifying first and second-generation owners who currently lack a succession plan. Our aim is to provide them with tailored solutions that enable them to achieve their financial objectives effectively. We prioritize the establishment of enduring relationships with our counterparties, fostering connections that span across years of frequent communication through phone calls, emails, text messages, and occasional visits. Rather than solely seeking owners driven by financial gain, we prioritize those who prioritize the preservation of the community's culture. Furthermore, we stay in regular contact with owners to be prepared for any unforeseen circumstances that may arise in their lives, and should the need for timely liquidity arise, we provide them with solutions to meet their financial objectives.By proactively identifying owners without a succession plan, fostering long-term relationships, and prioritizing community culture, we aim to enhance risk-adjusted returns and offer comprehensive solutions to meet the financial needs of owners, ensuring their objectives are accomplished efficiently.

Investment Thesis

Mobile home parks emerge as the optimal real estate investments for generating above-average risk-adjusted returns, primarily due to three key factors:

1.) The attributes of the current group of owners

2.) The characteristics associated with the co-owner model between community owners and residents, and

3.) The laws of supply and demand

Risk-adjusted return is a calculation of the profit or potential profit from an investment that considers the degree of risk that must be accepted to achieve the profit. It is the only way to get a true measure of the quality of an investment choice. In investing, relative performance is the only thing that matters.

The attributes of the current group of owners: Mobile home parks represent a relatively young and evolving asset class, with most parks having been developed within the last 30 to 60 years. Within this industry, a significant number of first- and second-generation owners are now approaching retirement age and seeking an exit from their investments. Due to the historical practice of constructing parks on farmland owned by individual families, the ownership landscape is highly fragmented. Around 70% of properties are privately-owned by individual 'mom-and-pop' operators, presenting a substantial opportunity for smaller, well-managed operators to consolidate properties into a portfolio during the industry's early stages of consolidation. This fragmented ownership structure creates favorable conditions for identifying and building relationships with property owners who align with your investment profile. Nurturing strong relationships with these owners becomes paramount in structuring exceptional deals with creative financing terms. Furthermore, the mom-and-pop owner dynamic offers an additional advantage — community performance can often be enhanced by implementing straightforward professional property management systems and processes, as well as leveraging modern technology more efficiently than previous owners.

The characteristics associated with the co-owner model between community owners and residents: Well-operated mobile home parks exhibit the economic characteristics of a parking lot while fostering a sense of community akin to a subdivision. This unique combination of attributes significantly reduces operating leverage by alleviating property owners from the two largest real estate expenses: turnover and repair and maintenance.

a. Resident turnover in mobile home parks is notably lower compared to traditional multi-family properties. Apartments typically experience an average turnover rate of around 50%, resulting in substantial expenses, time, and resource drain. In contrast, mobile home park residents who own their homes witness a significantly reduced turnover rate, averaging around 5%. This figure is approximately 90% lower than that of apartment complexes. Another contributing factor is the cost associated with relocating a mobile home, ranging from $3,500 to $6,000. This expense often motivates homeowners to sell their homes to someone else rather than relocating. Consequently, as long as a mobile home is well-maintained, someone will continue to pay rent on it until it requires replacement, which typically occurs approximately every fifty years. Lower turnover translates to reduced vacancy rates, marketing costs, and move-in/out expenses.

b. In mobile home parks, residents bear the responsibility for repair and maintenance on their homes. Landlords primarily cover the costs associated with maintaining common areas and tree care. We estimate that repair and maintenance expenses for mobile home park landlords are 60% to 75% less than comparable costs for apartment landlords. This significant reduction stems from the fact that renters in mobile home communities own their structures and are responsible for maintaining their individual lots.

The laws of supply and demand: The fundamental principles of supply and demand play a vital role in mobile home park investments. The limited supply of mobile home parks, coupled with a growing demand for affordable housing options, creates a favorable market dynamic. This imbalance drives property value appreciation and the potential for above-average returns.

OneTake Investments believes the next three to five years will offer opportunities to acquire mobile home parks at attractive valuations. The manufactured housing industry will continue to consolidate, demand for affordable housing will continue to grow steadily and the supply of mobile home parks will continue to slowly shrink. All of these factors will lead to an increase in the cash flow that is generated and to significant price appreciation of the asset. Mobile home parks offer the best risk-adjusted return of any real estate class.