Buying real-estate happens to be a solid way to grow your wealth if guess what happens you're doing. There's also lots of methods to toss your hat in the ring with real-estate investing, and one has remained mysterious and alluring to many people: farmland investing.
It's a good way to diversify your portfolio having an investment that is clearly a lot distinctive from other things it's likely you have, and that's lots of desirable qualities. But there's one problem: evaluating good farmland is just a rare skill most of us don't have, and it will take a huge amount of money.
Until recently, that is: a new company called AcreTrader provides a platform where you are able to purchase farmland real-estate with absolutely no knowledge and at a fraction of its traditional price. AcreTrader provides a uniquely new way to invest, but it's not for everyone. We'll allow you to figure out if it's worth looking into further in this review.
What Is AcreTrader?
AcreTrader is a real-estate crowdfunding company. But unlike other platforms that offer investments in residential or commercial property — such as Fundrise — AcreTrader's listings are working farms.
The CEO of AcreTrader is Carter Malloy. Despite his background in finance, he's no “city slicker” — Carter grew through to a family group farm in Arkansas. He founded the business in April 2018 and manages operations from AcreTrader headquarters in Fayetteville, Arkansas. The business is the perfect chance for him to combine lifelong passions for agriculture and investing.
Who Should Invest at AcreTrader?
For the time being, AcreTrader is only available to accredited investors — people that have a net worth more than $1,000,000 or income above $200,000/$300,000 (single/married).
Accreditation is required because investments with limited regulatory oversight present a higher risk to investors.
The accreditation threshold protects investors who cannot withstand a substantial capital loss. Read more about accreditation at the SEC. Investors must provide proof accreditation before investing.
But anyone can open an account or browse investments. In line with the FAQs, AcreTrader is actively attempting to open the platform to allow investment by all U.S. investors.
AcreTrader is most effective for investors trying to diversify into long-term real-estate investments that do not fluctuate with the stock market. Your investment horizon should be at the least three to five years. The estimated investment duration varies by deals.
Farmland is a way to diversify your existing real-estate holdings, or it could be a desirable place to use real-estate crowdfunding for the very first time.
The AcreTrader investment committee critically analyzes many deals, and only selects the most truly effective for its platform. It is a managed investment platform, meaning you're putting much of faith inside their in-house investment team to find good deals.
But investors should still anticipate to perform due diligence on each investment opportunity. Being an accredited investor, you should understand the investment.
Regulation authorities don't provide just as much oversight as stocks or non-traded REITs.
Like all investments, you assume the danger when you invest at AcreTrader. However, you'll own an actual asset — land, which will be of limited quantity with this planet. As long as the soil is fertile, the land can produce income and help investors grow wealth.
Is AcreTrader the right platform for you?
When looking into AcreTrader, it is fairly safe to express it is an increasing investment platform that will have no problem establishing itself as time goes on. The key downsides to the platform, however, would be the high minimum investment fee along with the truth that only accredited investors can invest. Once AcreTrader can sit down, take a look, and address these problems, we believe that this platform stands to be one of the greatest alternative real-estate investing platforms around right now.
The Bottom Line
Utilizing a crowdfunding platform can be a great way to dip your toes in to the potentially lucrative pool of real-estate investing. It's truly passive income. Once you've invested your money, there's no work to be done on your part.
AcreTrader gives you a way to potentially make money from farmland and never having to plow a field or study an almanac go url.
Learn how you are able to purchase traditionally profitable farmland with AcreTrader today.