AcreTrader platform aims to connect investors, to available farmland for purchase. AcreTrader incorporates each property it acquires under an LLC, and then users are able to buy shares of that entity.
- Low Investing Minimums
- Low Feess
- Unique Offerings
- In Depth Research
- Accredited investors only
- Not a broker-dealer
- Cashflow Income is paid once a year
AcreTrader was founded in 2018 by Carter Malloy who was part of investment equity firm for 5 years. Moreover, this Farmland investing platform aims to provide an accredited investor, the ability to invest in real estate. As a result, make it is easy to buy shares or farmlands and earn passive income.
They recently raised a $5 million seed round led by RZC investments.
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Farmland investing platform
The real estate crowdfunding platform offers US farmland. Investors can buy fractional farmland by acres. The platform provides a full disclosure of crop yields statement such as;
- The total cost of the farm
- Rent estimates
- Operating expenses & net yield estimates
- Annual return
- Gross Cash Yield
- Holding period
- Minimum investment
- Farm Price
- Investment style
- Primary crops
AcreTrader provides all the above with their own scoring system. As a result it help to better navigate investors between prospective farmlands. Moreover, the investor income from farmland in mostly related to renting farmers pay to use the lad. Furthermore, an investor can also benefit from land appreciation. The investment requires a specific holding time, it can be from 5 years to 20 years.
As a result, it provides a less volatile investment with a steady average growth according to AcreTrader.
You should also check out our Startup Options Platform review.
Reviewing Platform Offerings For Farmers
Provide US farmers the means to buy farmlands or the options to sell their farmlands.
If you are looking to sell your farmlands you can expect the following:
- conduct in-depth land valuation
- List the farmlands to AcreTrader users
- Sell it to institutional
- Sell it through AcreTrader partners
For the investor looking to invest in farmlands, the management fees associated with each farmland is typically 2% of the total offering value. In addition, there is an annual servicing fee of 0.75% of the value of the land.
If you are a farmlands owner and you are looking to sell via AcreTrader, you should expect a 5% charge when the entire property is sold.
Summary: Is AcreTrader a good investment?
It offers a unique crowdfunded real estate platforms we’ve seen in some time. Thus, providing accredited investors access to an asset class very few people have any exposure to US farmland.
Regardless of your understanding of US Farmlands it seems like AcreTrader managed to simplify investing in Farmlands which for most of us it unheard of.
According to AcreTrader ”Farmland has provided 11 to 12 percent average annual returns for nearly 30 years”
Disclaimer: All the information stated below is based on Cryptostec personal views, there may be additional conditions for farmer and investor to use the platform