Purchasing property has always been a powerful way to grow your wealth if you know what you're doing. There's also plenty of methods 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 having an investment that's a lot different from other things you may have, and that's plenty of desirable qualities. But there's one problem: evaluating good farmland is a rare skill many of us don't have, and it requires a large amount of money.
Until recently, that is: a fresh company called AcreTrader offers a platform where you could invest in farmland property with zero 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 allow you to find out if it's worth looking at 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 up on a household farm in Arkansas. He founded the company in April 2018 and manages operations from AcreTrader headquarters in Fayetteville, Arkansas. The company is an ideal chance for him to mix lifelong passions for agriculture and investing.
Who Should Invest at AcreTrader?
For the present time, AcreTrader is just open to accredited investors — those with a net worth greater than $1,000,000 or income above $200,000/$300,000 (single/married).
Accreditation is required because investments with limited regulatory oversight present a greater 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 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 seeking to diversify into long-term property investments that do not fluctuate with the stock market. Your investment horizon must certanly 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 might be a desirable place to try property crowdfunding for the initial time.
The AcreTrader investment committee critically analyzes many deals, and only selects the most effective for its platform. It is a managed investment platform, meaning you're putting a great deal of faith in their in-house investment team to find good deals.
But investors should still be prepared to perform due diligence on each investment opportunity. As an accredited investor, you must 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 chance when you invest at AcreTrader. However, you'll own a real asset — land, that is of limited quantity on this planet. So 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 at AcreTrader, it is fairly safe to say that it is a growing investment platform that'll have not a problem establishing itself as time goes on. The main downsides to the platform, however, would be the high minimum investment fee as well as the fact only accredited investors can invest. Once AcreTrader can sit back, take a peek, and address these problems, we believe that this platform stands to be one of the best alternative property investing platforms around right now.
The Bottom Line
Using a crowdfunding platform could be a great way to dip your toes 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 in your part.
AcreTrader provides you with ways to potentially profit from farmland and never having to plow an area or study an almanac.
Discover how you are able to invest in traditionally profitable farmland with AcreTrader today https://www.scamrisk.com/acre-trader-review/.
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