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Show Summary
In this episode of the Real Estate Pros podcast, host Erika speaks with Coach Henton from ACQ Holdings about his journey in real estate, the challenges he faced, and the innovative concept of tokenization in real estate investing. Coach Henton shares valuable insights for new investors, discusses the impact of tokenization on traditional lending, and emphasizes the importance of having multiple exit strategies. He also highlights his investment strategies in a changing economy and the significance of building a strong network through social media. The conversation concludes with Coach Henton’s vision for the future and his commitment to helping others succeed in real estate.
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Investor Fuel Show Transcript:
Seifuddin Henton (00:00)
tokenization, this is worldwide. It’s on the blockchain. now this is no red line. A lot of times when it comes down to lending, let’s be real. If your address is in a better location, you’re going to have better rates. So now with this, it takes all that away.where even it’s the playing field where you have the same playing field as a black rock. And I don’t think there’s ever been a time where it’s been even playing field with these trillion dollar companies. So that’s the exciting part.
Erika Proctor (02:09)
Hey everyone, welcome to the Real Estate Pros podcast. I’m your host, Erika and today I’m excited to be chatting with Coach Henton and he’s with ACQ Holdings. Coach, it’s to have you on the show today.I’m so excited to have you here. And you know, let’s dive in to your story. Can you share for our listeners who aren’t familiar with your world, how you got started in real estate?
Seifuddin Henton (02:34)
Yes, I was actually born into the game. So my great grandparents, they came here from Jamaica. They bought a bunch of properties and they also was private moneylenders. So they lent money to black people and the banks told them no. So with me, I always grew up knowing that I was going to go into real estate as an investor. I always was interested in commercial real estate because it just made sense to me to. ⁓Acquire properties that was already cash flow. He was like H5 and then from there I became a licensed real estate sales agent quickly. I was like, no, I gotta be on the money side so that I started reaching out to different private money lenders to learn from them. And now we are the source of for us on different aspects of real estate and on top of the client.
Erika Proctor (03:29)
That’s really exciting with building that out. have been some of the challenges of growing and scaling them?Seifuddin Henton (03:38)
Wow. Life. Life. ⁓ Starting with pretty much no money and ⁓ being creative. And ⁓ really the main challenge was just staying confident. That was the main ⁓ challenge because while you’re going this and doing that, you’re like, OK, like that. We could fund this or fund that. And people ask, OK, I’m spending, do you have?No, it’s not. I’m not using my money. don’t know what you mean. So how you funded this but you don’t have money? So it was really just the education part, assisting people with having a proper education.
Erika Proctor (04:16)
Speaking of that for our listeners who are new to investing, what kind of advice would you give them for just starting off?Seifuddin Henton (05:13)
So starting off as a new investor, would say number one, know exactly what do you want. That’s the key. So this really boils down to how do you want to live your life? And then you work your way backwards because there’s many different ways to answer any type of investment, especially real estate.Erika Proctor (05:18)
Mm-hmm.Seifuddin Henton (05:38)
You don’t even have to own, you could be a wholesaler, could be a property manager, you could be a sales agent or broker. You could be the person that sells the money. You could be an appraiser. So it’s really just about really knowing what lifestyle that you want and then align with someone who’s actively doingErika Proctor (05:54)
Was there someone in your life that you saw as a mentor or was there a group that you were involved in that really helped you level up?Seifuddin Henton (06:03)
Not really. With me, I use social media. so I literally put in social media for specifically, like Instagram and like LinkedIn. And so I went on both platforms and I put in private money. And then I literally just started to contact them people from there.Erika Proctor (06:23)
Talk about confidence there.Seifuddin Henton (06:24)
I mean, it’s a search engine. So, you know, it’s, you know, they’re looking to lend money. So I would contact them and ask them what’s needed to, you know, for people to get approved. And then from there, I would just market to people that I’m connected to the money and then when their money shows itself.Erika Proctor (06:45)
Yeah, very true. Well, fast forward to today. What markets are you operating in and what are you seeing in the industry that’s really exciting to you?Seifuddin Henton (06:56)
Right now, the number one most exciting thing when it comes down to the lending space and real estate is tokenization. There are trillions of dollars on the blockchain that’s being tokenized. And so that’s like literally every single asset on the planet will be tokenized. And this is what they’re saying in the next three to five years. And we have…access to the same platform or similar platform that the major players use. That’s already doing the jobs of others.
Erika Proctor (07:30)
With tokenization, it’s pretty new to a lot of people. So can you walk through a real example with how you’ve taken a physical commercial property and turn it in the tokenized shares?Seifuddin Henton (07:43)
Absolutely, absolutely. So think of it as crowdfunding but on steroids. And instead of owning shares of the actual property, you own shares of the notes. only shares of the mortgage. So let’s say a property is for sale for $5 million. And so how do you normally purchase that property? normally show proof of funds or show that you are approved for a loan.right? And then they’ll give you that sales purchase agreement. And then you have extra mile of time frame for that money to be created by the bank, and then utilize that money to purchase the property. So it’s pretty much similar. in the sense of a tokenization, ⁓ same thing, show proof of funds, get the property on the contract. And then from there, ⁓ now that that
that property goes on a tokenization platform. And now people have the ability to buy ⁓ shares of that note that’s being created. And it’s all done by the Security Exchange Commission, that’s it. And so that’s that super duper huge, you definitely want to be aligned with the Security Exchange Commission. And then from there, now the money’s raised, now they take that capital and purchase the asset.
Erika Proctor (09:00)
That’s so interesting because it’s very different than ⁓ anything we’re used to seeing. When you’ve been talking to other people about tokenization, have there been any myths that you’ve had to bust to show investors how tokenization can beat other forms of lending?Seifuddin Henton (09:53)
Yeah, absolutely. I just break it down. when it comes down to let’s say someone looking to purchase a commercial real estate property or a cash loan business. So normally when it comes down to say it’s 2 million and better, normally you got to put down how much? Usually it’s like 25 % or 20%, right? And so when it comes down to the tokenization,That’s just $250,000 one time to have their own white label tokenization platform. So automatically, numbers-wise, that $250,000 is less than 20 % of a $2 million, million, and so forth. And then on top of that, when it comes down to traditional lending, it’s based on your credit. So it’s based on your credit. It’s based on your income.
It’s based on your address. now with tokenization, this is worldwide. It’s on the blockchain. now this is no red line. A lot of times when it comes down to lending, let’s be real. If your address is in a better location, you’re going to have better rates. So now with this, it takes all that away.
where even it’s the playing field where you have the same playing field as a black rock. And I don’t think there’s ever been a time where it’s been even playing field with these trillion dollar companies. So that’s the exciting part.
Erika Proctor (11:23)
Right, that is really exciting. Now, are there any downsides or pitfalls that people should be aware of when it comes to tokenization?Seifuddin Henton (11:34)
That’s a great question. think the only, if there is a downside, it’s kind of difficult to see it because it’s on the blockchain and on top of that, aligned with the security exchange commission. So…It’s really difficult, so… ⁓
really difficult to beat it. That’s why that’s why all these these uh like once these children are giving in to to something like this they can’t even beat it and and they run the world.
Erika Proctor (12:04)
It’s a huge advantage to have the playing field level there. Coach, I want to go back in time. Maybe we don’t have to go back in time, but just with all the experience that you’ve had over the years, I’m sure, as you know, every real estate pro has a moment where things go sideways. Maybe you have to completely pivot with a deal.Maybe you gotta get out of a deal. Can you share one of those moments on your journey and what you learned from it?
Seifuddin Henton (12:35)
Most definitely. And so I acquired a home brownstone. It appraised at 1.5 ounces. And I acquired it without any money, credit, income, or loans. And so I did, it was creative where the person owned it. ⁓ And I brought everything else to the table for the private money lender or the construction company to the table.And I brought the vision false. What can we done? And so from there, we did a quick claim deed from the owner to the new LLC that I created. And then we both owned the property together. And then the world shut down. But before that, before that, the same day we took out a $900,000 cash out repo against the property. And then three months later, the world shut down.
So now we got this $900,000 and we can’t pull permits because the city’s closed. it was like, uh. And so eventually we wound up having to sell it. So we sold it for like 1.2. So that was the pivotal moment.
And so we then so we didn’t lose because we sold it and we still and we had the money invested in other things. So. Yeah, so.
That was a huge problem.
Erika Proctor (14:00)
It’s good that you were ableto find a solution there. Were there those lessons? Do you still carry that? What do you still carry with you today from that experience?
Seifuddin Henton (14:14)
From that experience, it was really about have more than one solution. You have to have multiple exit strategies. Multiple exit strategies, think. If not, then you’re at the hands of the economy or whatever.Erika Proctor (14:38)
Yeah, the economy can really, really change things a lot with ⁓ real estate. of which, there any strategies or any properties in the market that you’re looking for in particular given the way the economy is right now?Seifuddin Henton (15:37)
That’s a great question. So with me, I’m more looking towards sports teams, because sports run the world. So I’m looking at anything to do with sports. So I’m the sports teams. I’m looking at TV networks, because no matter what, people like to be entertained. And the spread is just so ridiculous. And I’m also looking at refineries.like like gold refineries, nickel wire, things of that nature because ⁓ while the dollar drops, gold has been clipped.
And that’s on a larger scale. on a smaller scale, ⁓ like, I absolutely love supermarkets. Absolutely, absolutely love supermarkets because I ask people this. When there’s, when there’s, when people panic, what do they do?
Erika Proctor (16:26)
They buy groceries. Or toilet paper.Seifuddin Henton (16:31)
Exactly, exactly, exactly.So that’s one of the things that people don’t really talk about. So supermarkets, storage facilities, storage units, storage facilities, because a lot of times, anytime you go to a storage facility, how many people are you working? It’s normally like…
three. So it doesn’t take that much. It’s not that much overhead as as payroll. so things of that nature, parking lots. Parking lots would be like one person. And lots of people think about parking lots. They think about like cars, but also you have truck stops. So you could buy land and literally turn it into a truck stop. And there are companies
that you can pay to be a part of their network where they handle everything for you.
Erika Proctor (17:26)
Are you referring to property management or something different there?Seifuddin Henton (17:31)
I’m referring to owning, owning the property.When you say property management, it’s about the I mentioned of church side.
Erika Proctor (17:33)
Yeah, know, going.It cut out a little bit. I just mean that, you know, when people typically talk about property, property management, that they, you know, they take care of any issues that any tenants have. So how, how would that, that work with, ⁓ you know, a parking lot or a supermarket or a storage unit?
Seifuddin Henton (17:56)
Oh,no, I was still my own in it. I was still as the investor.
Erika Proctor (18:00)
got it, got it. You know, when it comes to these examples that you were giving, how do you determine if the location is a good place, if it is a good investment? What are some of the things that you’re looking for there?Seifuddin Henton (18:15)
I have a team for that. I delegate. I have specific team that handles that for them, so I can just chill.Erika Proctor (18:18)
HaAnd I think the next natural question is, is how did you find someone for that?
Seifuddin Henton (18:27)
social media. You’d be so surprised. Alright, so how many people there are on the planet? They say it’s about little over 8 billion, right? About half of that population is on meta, which meta is Facebook, Instagram, and WhatsApp.Literally social media. have these phones and which are these devices where we’re literally able to connect with pretty much any person on the planet directly. All we got to do is put in the search engine, whatever it is that we can pull. And then we start talking to the people.
Erika Proctor (18:58)
Yeah, it’s so simple when you think about it.Seifuddin Henton (19:01)
Exactly. social media, I’m you, it’s free.Erika Proctor (19:08)
Yeah, it’s free and it’s amazing that the connections that you can make, you just gotta go for it.Seifuddin Henton (19:14)
I’m talking about, look, if you’re looking for property managers, put in property manager, you get in Facebook marketplace or Facebook or Instagram or LinkedIn, people are gonna come up and then you talk to them and then you bet them out and see if you’re looking for an attorney. Most of my team, I built them through Instagram.Erika Proctor (19:38)
That’s amazing. Well, with what you have going on with ACQ holdings, with tokenization, what’s next on the horizon?Seifuddin Henton (19:49)
What’s next on the horizon for me is really just spreading the word and helping more people. the funding source for the people, where we’re in the process of grabbing some, having our own streaming companies. And so being the marketing for the people and being the basic needs for people who are looking to own businesses. And then on top of that,There are over a trillion dollars worth of cash-flow businesses that’s available. So assisting people with being able to own these cash-flow businesses where now, because I’m like this, a family’s life can change tremendously from one cash-flow business that’s bringing in at least $10,000 profit for them monthly. Most families are living in a whole different financial aspect from $10,000 a month.
So just, you know, and it’s a need. You have these baby boomers, the baby boomers that are retiring and dying. And so now we have all these cash-flow businesses that’s available. So now it’s being the funded source to assist people with having the cash-flow businesses, having the commercial real estate. It all goes hand in hand, because a lot of these cash-flow businesses are in commercial real estate.
you know, lot of these businesses own the property. You follow me? So, so just being a being an assistance to the people.
Erika Proctor (21:15)
It’s a win-win situation when we don’t want to see these businesses close, when you want to help people succeed by getting these cash-filling businesses. And ⁓ it’s helping folks like you, too.Seifuddin Henton (21:28)
Exactly, exactly. Because then on top of that, we’re living longer. so pensions are not what it was. 401Ks are not guaranteed. It’s so many variables. So now you have so many people who are literally having to go back to work at like 65.Imagine if you the solution for that, which we are. So being the funding source and assist people with being able to have that, they, okay, you got this cash phone business, got this person that needs the funding, merge the two together.
Erika Proctor (22:07)
Well, Coach Henton I’ve loved our conversation today. If someone reaching out wants to connect, learn more about what you’re doing, what’s the best way for them to reach you?Seifuddin Henton (22:18)
So two ways. We have social media, Instagram, at Coach Henton C-O-A-C-H-H-E-N-T-O-N. And then we have my email address, ⁓ E-Z, ez123funding@gmail. Keep it simple.Erika Proctor (22:24)
YeahThanks again for being here.
Seifuddin Henton (22:37)
I appreciate you. Congratulations on the success.Erika Proctor (22:40)
Thank you. And for our listeners today, if you got value from this episode, make sure that you’re subscribed to the real estate pros podcast. We’ve got more conversations lined up with operators like coach Henton who are building fantastic real estate businesses. We’ll see you on the next episode.
