Buying property is definitely a solid solution to grow your wealth if you know what you're doing. Additionally, there are a lot of approaches to toss your hat in the ring with property investing, and one has remained mysterious and alluring to many people: farmland investing.
It's an effective way to diversify your portfolio by having an investment that's a lot distinctive from other things you might have, and that has a lot of desirable qualities. But there's one problem: evaluating good farmland is really a rare skill many of us don't have, and it will take a large number of money.
Until recently, that's: a new company called AcreTrader offers a platform where you could invest in farmland property with simply no knowledge and at a fraction of its traditional price. AcreTrader offers a uniquely new solution to invest, but it's not for everyone. We'll assist you to figure out if it's worth looking at further in this review.
What Is AcreTrader?
AcreTrader is a property 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 up on a family farm in Arkansas. He founded the company in April 2018 and manages operations from AcreTrader headquarters in Fayetteville, Arkansas. The organization is the perfect chance for him to combine lifelong passions for agriculture and investing.
Who Should Invest at AcreTrader?
For now, AcreTrader is ready to accept accredited investors — individuals with a net worth more 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. Learn more about accreditation at the SEC. Investors must provide evidence of accreditation before investing.
But anyone can open an account or browse investments. Based on the FAQs, AcreTrader is actively trying to open the platform allowing investment by all U.S. investors.
AcreTrader is best suited for investors looking to diversify into long-term property investments that not fluctuate with the stock market. Your investment horizon should really be at least three to five years. The estimated investment duration varies by deals.
Farmland is ways to diversify your existing property holdings, or it is actually a desirable place to use property crowdfunding for the very first time.
The AcreTrader investment committee critically analyzes many deals, and only selects the very best for the platform. It's a managed investment platform, meaning you're putting a great deal 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. As 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 once you invest at AcreTrader. However, you'll own a real asset — land, that 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 https://www.scamrisk.com/acre-trader-review/.
Is AcreTrader the right platform for you?
When looking at AcreTrader, it is rather safe to state it is an increasing investment platform that'll have no issue establishing itself as time goes on. The key downsides to the platform, however, are the high minimum investment fee as well as the fact that only accredited investors can invest. Once AcreTrader can take a seat, take a look, and address these problems, we believe that this platform stands to be one of the greatest alternative property investing platforms around right now.
The Bottom Line
Utilizing a crowdfunding platform can 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 profit from farmland and never having to plow a field or study an almanac.
Learn how you are able to invest in traditionally profitable farmland with AcreTrader today.