“Why I’m Tokenizing” — Iron Horse Capital Group
By Pete Kavanagh, CEO of Iron Horse Capital Group
For the past 10 years, I have been investing into residential real estate with multiple strategies including long term holds and short term flips with my company, Iron Horse Capital Group.
Iron Horse Capital Group is a private investment and advisory firm focused on aggregating portfolios of single family residential properties. With over 80+ years of single family residential experience across our team and over a decade of Company operations in Columbus Georgia, our firm is well positioned to capitalize on current residential real estate opportunities. I personally have a decade of experience in residential real estate and served eleven years as a Special Operations Officer in the US Army after graduating from The Johns Hopkins University.
Our thesis with our new fund is simple, as we are raising $10m yearly to invest in Single Family Residential, debt-free real estate. We are aiming to offer our investors 7% annualized dividends as we have done with our funds in the past.
A few months ago, as part of a club called “Whale Club”, I was able to learn more about real estate tokenization with some of the STA team.
As my fund is a Reg D 506c, tokenization made a lot of sense to me for two major reasons:
- Attract more investors that were currently outside of my network
- Create liquidity around my assets so my hold period can be as long as I want
Attracting more investors currently outside my network:
The main thing that is attracting me to the tokenization space is to reach a larger network of investors. As a veteran of raising capital, I have developed a network of great accredited investors, but the ability to add to that network can help me raise more capital than ever.
Tokenization and the companies we’re affiliated with, like STA, has opened the door to new investors, domestically and globally. Utilizing networks in the industry, creating an online marketplace, and shifting one of our greatest value adds to having a liquid real estate investment has to be one of the most attractive.
Create liquidity around my assets so my hold period can be as long as I want
The other main concept that attracted me to tokenization is the liquidity aspect. As a real estate owner and before I was considering tokenization, I understand that real generational wealth is created through holding real estate for long periods of time. Typically, I am faced with investor pressure to have shorter hold periods than I’d like, because my investors want to see their principal back in a fair amount of time.
With tokenization, I get the best of both worlds, giving my investors the ability to exit when possible, and allowing IHCG to hold the assets for longer periods. A true win-win!
While these are my two main focuses for tokenizing my upcoming fund, there are many other reasons to tokenize as well.
If you’d like to learn more about my deal and why I’m tokenizing, please do one of the following:
- Watch the replay of my webinar with STA
- Reach out to me directly at pete@ihcg.pro
I’m looking forward to hearing from you and couldn’t be more excited about this project and opportunity!
