Investing in property happens to be a strong way to grow your wealth if guess what happens you're doing. Additionally, there are lots of methods to toss your hat in the ring with property investing, and one of them has remained mysterious and alluring to numerous people: farmland investing.
It's an effective way to diversify your portfolio having an investment that is clearly a lot distinctive from anything else you might have, and that's lots of desirable qualities. But there's one problem: evaluating good farmland is just a rare skill the majority of us don't have, and it takes a large number of money.
Until recently, that's: a new company called AcreTrader offers a platform where you can purchase farmland property with absolutely no knowledge and at a fraction of its traditional price. AcreTrader offers a uniquely new way to invest, but it's not for everyone. We'll help you figure out if it's worth looking into further in this review.
What Is AcreTrader?
AcreTrader is a property crowdfunding company. But unlike other platforms offering 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 household farm in Arkansas. He founded the business in April 2018 and manages operations from AcreTrader headquarters in Fayetteville, Arkansas. The business is the right opportunity for him to combine lifelong passions for agriculture and investing.
Who Should Invest at AcreTrader?
For now, AcreTrader is only open to accredited investors — those with a net worth higher than $1,000,000 or income above $200,000/$300,000 (single/married).
Accreditation is needed because investments with limited regulatory oversight present an increased risk to investors.
The accreditation threshold protects investors who cannot withstand a significant 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 trying to open the platform to allow investment by all U.S. investors.
AcreTrader is most effective for investors looking to diversify into long-term property investments that do not fluctuate with the stock market. Your investment horizon should be at the very least three to five years. The estimated investment duration varies by deals.
Farmland is ways to diversify your existing property holdings, or it might be a desirable place to use property crowdfunding for the first time.
The AcreTrader investment committee critically analyzes many deals, and only selects the very best for its platform. It's a managed investment platform, meaning you're putting much of faith in their in-house investment team to locate good deals.
But investors should still anticipate to perform due diligence on each investment opportunity. Being an accredited investor, you need to understand the investment.
Regulation authorities don't provide the maximum amount of oversight as stocks or non-traded REITs.
Like all investments, you assume the risk whenever you invest at AcreTrader. However, you'll own a genuine asset — land, which will be of limited quantity on 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 state it is an increasing investment platform which will have no issue establishing itself as time goes on. The key downsides to the platform, however, are the high minimum investment fee along with the fact only accredited investors can invest. Once AcreTrader can sit back, take a look, and address these problems, we believe that platform stands to be one of the best alternative property investing platforms around right now go now.
The Bottom Line
Using a crowdfunding platform could be a smart way to dip your toes in to the potentially lucrative pool of property investing. It's truly passive income. Once you've invested your hard earned money, there's no work to be done on your own part.
AcreTrader offers you ways to potentially make money from farmland and never having to plow a subject or study an almanac.
Find out how you can purchase traditionally profitable farmland with AcreTrader today.