You can also become an accredited investor by becoming someone who holds a valid Series 7, 65 or 82 license.Īccredited investor status is required with farmland crowdfunding because it has unique risks, and a long time horizon that will not be suitable to smaller investors. That means you’ll need to prove either an annual income of at least $200,000 (or $300,000 jointly with your spouse) in the most recent two years, plus a reasonable expectation of the same income level in the current year, or a minimum net worth of at least $1 million, not including the value of your principal residence. One factor to be aware of with both AcreTrader and FarmTogether is that investing with either requires you to be an accredited investor. This enables farmers to get the funds they need, and investors to participate in what has historically been a very lucrative investment opportunity.ĪcreTrader has a Better Business Bureau rating of A+, the highest rating the agency issues based on a scale of A+ to F. To do so, they sell the land itself, then rent it back from AcreTrader. You can hold your farm investments in your portfolio, much the same as you do with stocks and bonds.ĪcreTrader functions as an online farmland marketplace, were farmers come to raise capital to run their farms. This eliminates the need to invest six or seven figures for acquiring and managing an active farm. Best of all, you can participate in farm properties offered on the platform with just a few thousand dollars. AcreTrader handles all the investment and management details, limiting your involvement directly to investing. This is unlike most real estate crowdfunding platforms, that focus on commercial real estate investing.ĪcreTrader enables investors to add farmland to their portfolios, even without any previous experience in the farming industry. AcreTrader is a real estate crowdfunding platform, but one specializing in productive farmland. It was founded by a group of individuals who already had extensive experience with investing in farmland and wanted to extend the opportunity to other investors. The company is not rated by the Better Business Bureau, nor does it have a profile with the agency.Ĭlick Here To Sign Up With FarmTogether! About AcreTraderĪcreTrader is based in Fayetteville, Arkansas, and was launched in 2017. Total assets under management across all FarmTogether products are in excess of $170. Through their all-in-one digital platform, investors can browse carefully vetted farmland investments, review due diligence materials, and sign legal documents, seamlessly online.įarmTogether began operations in 2017 and today, they serve more than 1,000 clients invested in more than 40 properties in eight states covering 14 crop types. So, let's dive in and compare AcreTrader vs FarmTogether.ĪcreTrader vs FarmTogether: Which is the Better Farmland Crowdfunding Platform? About FarmTogetherįarmTogether is a farmland investment manager that allows qualified individuals to invest in institutional-quality farmland opportunities in prime growing regions across the US.įarmTogether provides access to farmland through a variety of channels, including crowdfunded farmland offerings, 1031 Exchanges, sole ownership bespoke offerings, and their more recent Sustainable Farmland Fund. If you want to add farmland to your portfolio, either of these crowdfunding platforms is worth a look. Two of the biggest names in farmland crowdfunding are AcreTrader and FarmTogether.Įach will provide a combination of an annual distribution of income from property rents and, ultimately, capital appreciation on the sale of the land. Farmland real estate crowdfunding platforms have sprung up in recent years that enable accredited investors to participate in farmland investing with as little as $15k. Investing in farmland isn’t nearly as difficult as it once was. Over 20 or 30 years, that 1% to 3% additional return can really add up! Real estate has historically been considered one of the top alternative investments to stocks.ĭuring a recent 44-year period, commercial real estate outperformed the S&P 500, with annual average returns of 9.29% to 6.86%.īut did you know that farmland outperformed both stocks and commercial real estate during the same time span?įarmland had an average annual total of 10.23%.
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