Overview

One Touch Real Estate Management, LLC (The Company or One Touch) develops and redevelops real estate in urban centers and urban cores with a Southeastern and Midwestern geographical focus. The Company has been in existence since 2003 and is owned by two brothers, Darrick T. Young and Roberto W. Young. The impetus behind founding the company dates back to their roots growing up in the Carr Square Village housing projects and later living their formative years within the Greater Ville community of North St. Louis. Roberto has previously worked for a large Real Estate Investment Trust (REIT), within the Financial Services Industry, and most recently in a corporate Strategy and Business Development role at a technology company. He earned two B.S. degrees, magna cum laude, in Electrical and Computer Engineering from the University of Memphis and an MBA from Harvard Business School. Darrick, the quintessential entrepreneur, earned his B.B.A. degree in International Business from Howard University and an MBA from Fontbonne University in St. Louis.

Back to Top

Objective

Our primary objective is comprehensively building healthy communities through real estate development and delivering superior investment returns. We accomplish our goal via a 3-prong strategy: Securing ownership of targeted parcels, turning eyesores into operating assets; offering a premium, affordable housing product in a dignified way; and creating a sustainable economic business model. We acquire distressed assets at 20-25% of historical fair market value, and then we re-invest up to 20% of the expected fair market value in improvements; thus, creating a premium product and brand. Finally, we stabilize the assets by strategically partnering with the local housing authorities, market renters, charities, and other non-profits to offer a premium rental product to low-income families. Additionally, these partnerships allow us to mitigate rental collection risks while supporting the business model financially. Our operating model is truly a socially-conscious, capital platform.

Back to Top

Inflection Point

To this point in our company's history, we have grown organically investing on our personal balance sheet. Thus, we come to the table independently with “skin in the game”, and a proven track record of execution. Altogether, we own seven (7) properties; five (5) in Atlanta and two (2) in St. Louis. However, to scale, we are keenly aware of the need for outside sources of capital to see continued growth at this inflection point in our company’s lifecycle. We are ready, willing, and able to grow, yet have capital constraints. While many view the global recession as a time of astronomical risks and continued asset devaluation, we see it differently. We realize an opportunity of a lifetime to participate in prudent investment with record-low asset values and risk-adjusted returns. Additionally, often the underlying land value can represent 33-67% of overall investment value (acquisition + improvement costs); and land does not depreciate.

Back to Top

Capitalization

We have commenced the capital raise for an initial $3-5 million round of funding to target distressed single-family housing units in urban cores. The investment allows the company to scale our operations via our business model, which has been refined over the past 9-years. We envision raising the funds in three (3) tranches of at least $1 million. Operationally, our throughput will be 4 properties per month at a $60,000 per property clip amounting to ~50 properties per annum.

Back to Top

Fund Structure

The fund will have a 7-10 year investment horizon and offer both equity and debt structures. On the equity side, we offer a 8% annual preferred return, with net income flowing through to General Partners. Upon return of investors' original investment capital, operating income will be split (25% Limited Partner/75% General Partner); essentially offering investors a 108% return before the General Partners realize any capital return. Finally, upon asset sale, net proceeds will be split (50% Limited Partner/50% General Partner). This arrangement amounts to a 18-24% IRR over a 10-Year Investment Horizon.

On the debt side, we offer a 6.5% annual coupon, paid quarterly. The term is 5-Years with two (2), 1-Year Extension Options.

Back to Top

Sourcing

We have a detailed plan for the continuous sourcing of assets. We will remain connected with real estate brokers who wholesale exclusively bank-owned properties. We will also form strategic relationships with “Work-Out Divisions” at local banks to structure owner financing arrangements, in which, we share in the operational and improvement costs while the bank carries/finances the acquisition during lease-up until divestment. Additionally, we will also target the non-operating assets of FDIC insured banks currently under cease and desist orders. These institutions clearly have liquidity needs, which positions our “equity infusion” value proposition nicely.

Back to Top

Market

The market for Distressed Real Estate Investment opportunities are ripening by the day. Waypoint Real Estate Group, a California-based real estate investment and development company, has recently signed a $400 million deal with GI Partners, a private equity firm in Silicon Valley. Other large private equity investors — including Colony Capital, GTIS Partners and Oaktree Capital Management, in partnership with the Carrington Holding Company — have committed millions to this new market, and Lewis Ranieri, often called the inventor of the mortgage bond, is considering it, too. Ultimately, this is a highly fragmented marketplace with majority small-scale investors owning 1-2 properties. We see One Touch as a pioneer in creating an Institutional Investment Class offering for Single-Family Residential Assets that have been bundled and stabilized within a healthy and functioning community.

Back to Top

Competitive Advantage

We are uniquely well positioned, nimble, and informed to seize the moment and opportunity to invest in undervalued, distressed single-family housing situated near urban centers. With our local market expertise, it is our bet that transportation costs will continue to rise, and buyers/renters will want to be located near so called “Irreplaceable Corners” – Heavily trafficked locations in major growth markets. Our business plan ensures that partners (tenants) will live inside the I-285 Beltway near city centers and in close proximity to services and amenities. Additionally, our targeted assets are strategically located near and around the Beltline Project, a $2.8 billion public-private initiative interconnecting communities, retail, parks, walking trails, etc., inside of the Beltway. Our assessment above is confirmed by the Atlanta Regional Commission's “Fifty Forward: Metro Atlanta Futures Forum”, which states, “Recent trends see people moving closer into the urban core, and simultaneously housing in these activity and employment centers are becoming less affordable” which bodes well for the One Touch product offering. The document goes on to say, “Sustainable communities will attract people expecting more than the traditional transportation menu. These communities will offer a host of travel options – walking, biking, transit and automobile travel will comingle seamlessly in the communities of the future. Atlanta was founded as a transportation hub, and for its future sustainability, it will have to continue to innovate how people and goods circulate throughout the region.”

Back to Top

Operating Model

Our operating model has several differentiating factors. We offer affordable entry and exit strategies. During the Lease-Up, Stabilization, and Holding Period, we participate in the Housing Choice Voucher Program (formerly Section 8) collecting risk-adjusted rental income via the Housing Assistance Payment (HAP). The HAP is provided by HUD and can subsidize up to 70-100% of the total rental payment. We will also continue exploring community centric Project-based Rental Assistance programs, differing in principle with the Tenant-based subsidy programs; in that, the subsidy is linked to the Asset vs. the Individual. This strategy leads to longer lease terms, lower turnover, and a reduction of rental renewal risk; ultimately a successful strategy leads to consistency throughout the community. Understanding that buildings produce half of all U.S. greenhouse gas emissions, sustainable initiatives focused on the built environment are and will be an important driver in addressing global climate change. It is in this spirit that we commit to eco-friendly and sustainable materials and construction configurations. Additionally, we develop real estate by preserving existing structures vs. transporting new material to the job site. In closing, we have identified several exit strategies:

  • Residential Partners (Tenants); upon successful completion of sanctioned financial awareness and training curriculum
  • Small City Fire & Police Pension Funds in search of a
    risk-adjusted coupon
  • Insurance Companies looking for a similar risk-adjusted return
  • International Investors looking to acquire turn-key operation
    and yield
  • Socially-conscious Family Investment Offices; Land
    Trust Conservationist
  • REIT or Small IPO upon critical mass
  • IRA's and SEP IRA's
Back to Top

Ownership Structure

  • Each Property is owned by a Limited Liability Company
  • Ownership in the LLC based on pro-rata share of total equity invested for a particular property
  • One Touch serves as the managing member of the LLC and manages all day-to-day operations

Investment Structure

  • Risk management and flexibility are integral to One Touch’s Investment Platform
  • Each property investment has the opportunity to be uniquely structured based on the investors’ interest to participate in equity or debt portions of the investment

Contact us

Address

245 N. Highland Ave NE

Suite 230-368

Atlanta, Ga. 30307

Darrick Young

email - dyoung@onetouchholding.com

Roberto W. Young

email - ryoung@onetouchholding.com