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AcreTrader is an innovative platform that connects accredited investors with profitable farmland investment opportunities.
Do you want to diversify your portfolio with alternative investments? You may want to consider farmland investing through AcreTrader, which is a platform that allows investors to buy shares of farmland properties.
To date, the total equity raised by AcreTrader is more than $305.1 million. The company claims to provide a hassle-free way to invest in U.S. farmland, but is it trustworthy?
In this AcreTrader review, we’ll help you make an informed investment decision.
What is AcreTrader?
AcreTrader is a platform that allows accredited investors to invest in farmland. Carter Malloy recognized the potential of farmland and founded AcreTrader in 2018. Farmland is a stable and profitable investment tool.
However, there are some barriers to entering the farmland investment space. These include the high cost of investing and the challenge of managing farms. So, AcreTrader’s founder sought to provide a solution.
AcreTrader has an A+ rating with the Better Business Bureau and aims to make investing in farmland more accessible. The company offers investors the opportunity to buy shares of U.S. farmland properties.
AcreTrader also deals with property management and administration.
How AcreTrader Works
First, AcreTrader chooses only high-quality farms to invest in. Then, AcreTrader places the farm into a limited liability company (LLC), which signs a contract with the farm owner.
The LLC secures funds from AcreTrader and ensures everything is legal. This process takes one to three months. Next, you can buy shares of this LLC online.
Each share represents ownership of a tiny piece of the farm. After you purchase your shares, AcreTrader takes care of everything else. AcreTrader handles all the facets of property management and administration.
AcreTrader also works with the farmers to help them improve their farms. Farmers pay rent into a unique bank account administered by a LLC. AcreTrader pays out excess annual income to investors through cash distributions each December.
Generally, people hold onto their shares for 5 to 10 years. When it’s time to sell the farm, investors get a cut from the sale. You can also sell your shares on the AcreTrader marketplace.
AcreTrader makes its money mainly through the fees it charges. The company has a flat yearly administration fee of 0.75%.
Before investing, AcreTrader conducts extensive due diligence. This includes examining the farm’s legal title and assessing its potential liquidity and profitability.
AcreTrader provides investment opportunities that you can easily access online. Investors can purchase shares, each representing a fraction of an acre.
AcreTrader offers a range of farm management services to ensure the farmland is well cared for and optimized for profits. These services include working with local farmers, improving soil sustainability and handling administration.
Investors in AcreTrader receive annual cash distributions from their investments. These distributions are typically in the range of 3-5% of the farm’s value.
AcreTrader for Investors
Are you browsing AcreTrader reviews to learn how to become an investor? Look no further. To become an investor with AcreTrader, you must create an account on the company’s website.
You must also be an accredited investor. Accreditation involves meeting specific income requirements. You can browse the available investment offerings on the platform, choose one and invest your desired amount.
AcreTrader offers different investment options that include core, core plus and opportunistic investments. AcreTrader differentiates these investments based on the following:
- Physical attributes of the farmland
- The property’s location
- The holding period for the investment
- The amount of debt that it runs up for improvements
Core investments focus on owning land in well-established areas with good resources and infrastructure. The holding period is five to seven years, and there is no leverage.
Core Plus investments offer higher returns by taking on slightly more risk. The holding period ranges between five and ten years. For these investments, leverage is minimal or not used at all.
Opportunistic investments aim for high returns. AcreTrader invests in properties with high development or redevelopment potential. Holding periods can range from five to ten years or more.
AcreTrader for Farmers
The AcreTrader platform offers farmers different options that include sale-leasebacks, fundraising opportunities and expansion services.
If a farmer wants to farm on a new property, AcreTrader can buy the property and set up a lease. Alternatively, a farmer may already be using a property that the landlord wants to sell.
AcreTrader can buy the farm, helping the farmer continue to operate on the land. Farmers can also sell a part of their farm to investors on AcreTrader’s platform.
AcreTrader can help set up a long-term lease for three to five years for the land. Additionally, farmers can partner with AcreTrader to sell their farmland and raise capital.
AcreTrader Fees & Minimums
|Minimum Investment||$8,000 to $20,000|
How Does AcreTrader Compare?
| || || |
1.00% - 2.00%
$8,000 to $20,000
Who Should Use AcreTrader?
The ideal customer demographic for AcreTrader is farmers and accredited investors. As a farmer, the farmland real estate investing platform can help you:
- Raise funds for your farm
- Get sale-leasebacks
- Expand your acreage
- Earn passive income
AcreTrader’s opportunities are best suited for those with the financial means and expertise to take on these types of investments. Only accredited investors meet both these requirements.
If you’re considering using AcreTrader, it’s important to understand what to expect. Farmers can expect access to capital and expert support. Accredited investors can expect high-quality investment and diversification opportunities as well as transparency.
Getting Started with AcreTrader
Are you interested in becoming an AcreTrader investor? Here are the steps you must follow to get started:
- Create an account online. You must provide basic personal information. Once you’re done, you can browse the available farmland investment opportunities.
- Connect your bank account. You must have funds available in your AcreTrader account, so connect your bank account to your AcreTrader account and load funds.
- Purchase shares in the entity that owns the farm. This means you’ll own a portion of the farm, but won’t be responsible for managing it. Instead, AcreTrader will handle all the day-to-day management of the property.
Should You Invest with AcreTrader?
You may be an accredited investor looking for a unique farmland investment opportunity. AcreTrader may be the perfect fit for you. Here are some benefits of investing with AcreTrader:
- Portfolio diversification
- Professional farm management
Investing with AcreTrader can be a wise investment choice. However, it’s important to do your due diligence. Don’t hesitate to contact AcreTrader’s team with any questions or concerns.
Here are the answers to some frequently asked questions about AcreTrader:
Is AcreTrader trustworthy?
Yes, it is because of its transparency and thorough due diligence process. AcreTrader is also registered with the Securities and Exchange Commission.
Can you really make money with AcreTrader?
Yes, you can invest in farmland properties that generate income through rent and appreciation.
Is AcreTrader only for accredited investors?
Yes, at present, AcreTrader only serves accredited investors.
Does AcreTrader offer customer service?
Yes, through various channels such as email, phone and an online contact form.
Acretrader is a farmland investing platform that allows you to invest in U.S. agricultural land and start building a portfolio of quality farm land real estate in just minutes online.
Product Brand: AcreTrader