It’s always been a good idea to invest in real estate, provided you have the necessary knowledge.
There are numerous ways to get involved in investing in real estate, and a lot of people are drawn to one of these options in particular: farmland investing.
An investment like this can offer a really unique opportunity to diversify your investment portfolio and include many outstanding attributes. But one issue stands in your way: Assessing good farmland is a rare ability that most of us lack, and it’s really expensive.
Until recently, there was no option for people to invest in agricultural real estate without any knowledge or at a reduced price, but AcreTrader offers a platform that does both.
AcreTrader is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While they each have their pros and cons, there is a ton of potential for success in investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to think about something seriously:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital and is very labor-intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like::
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what AcreTrader looks like on the inside, keep reading.
What Is AcreTrader?
AcreTrader is a real estate investment platform that specializes in farms. It has lower minimum investment requirements for authorized investors than other commercial real estate (CRE) investing platforms.
Furthermore, the nature of the asset class on which it concentrates makes it particularly interesting. Farmland has outperformed every other major asset class since 1990, according to AcreTrader, with not a single bad year.
That’s not to say that individual transactions don’t lose money; low-risk doesn’t mean risk-free.
However, it remains a very interesting asset class, and AcreTrader is one of the first platforms to provide it to individual investors.
AcreTrader conducts rigorous due diligence, including in-person interviews with sponsors and operators, in-person tours to the properties, the expected financial analysis, and comparisons to similar farm transactions in the area.
AcreTrader makes money in a slightly different way than many other real estate investing platforms and focuses on farmland.
While it does charge asset management fees ranging from 0.75 percent to 1 percent per year, it also operates as a real estate broker, earning a commission on each property purchased and later sold.
Real estate listing fees and commissions are a common and typical expense in any property sale. AcreTrader claims that by acting as a real estate broker, it can earn from this fee while keeping other fees lower for investors.
AcreTrader Company Profile: Who Is Carter Malloy?
Carter Malloy, the company’s founder and CEO, was up in a farming family and spent much of his career working for huge private equity and investment banks before starting AcreTrader.
Malloy is AcreTrader’s largest shareholder, giving him a lot of personal stake in the company.
Malloy explained the benefits of farmland investing and how AcreTrader analyses this unique asset class in a 2020 interview.
AcreTrader Company Profile: Who Is Garrott McClintock?
A fifth-generation family farmer, Garrott McClintock, is AcreTrader’s vice president of agricultural operations.
He has extensive farm management experience, having co-managed a portfolio of more than $200 million in active farms and advising agricultural start-ups.
AcreTrader Review: AcreTrader At A Glance
There are presently 15 employees working for the business, which has received over $5 million in venture capital. This platform aims to make farmland investments more accessible to ordinary investors.
AcreTrader investors have the chance to purchase shares in farms in all 50 states, a sector of real estate investing that has been notoriously underappreciated.
The platform now claims to provide annual capital appreciation rates of 7-9%.
Because you are not considered a landlord when purchasing farm shares, you have no management duties, as you would when investing in residential and commercial real estate.
What Is An Accredited Investor?
Individuals and businesses having the status of accredited investors can trade securities that have not been registered with the appropriate authorities.
They are eligible for this privileged access if they meet at least one of the following criteria: income, net worth, asset size, governance standing, or professional experience.
The Securities and Exchange Commission (SEC) uses the term accredited investor in the United States under Regulation D to refer to financially knowledgeable investors and have a lesser need for the protection provided by regulatory disclosure filings.
High net-worth individuals (HNWIs), banks, insurance firms, brokers, and trusts are all examples of accredited investors.
Quick Facts About Accredited Investors:
- For unregistered securities to be sold, they must be sold to accredited investors, who are regarded as financially capable of taking on such risks.
- Accredited investors may purchase and invest in unregistered securities if they meet one (or more) of the following requirements: income, net worth, asset size, governance status, or professional expertise.
- Unregistered securities are inherently riskier since they lack the standard disclosures that accompany SEC registration.
- The United States Congress amended the definition of an accredited investor in 2020 to include registered brokers and investment advisors.
Income Requirements For Accredited Investors
People who have earned more than $200,000 in the last two years and intend to earn at least that much in the current year are considered accredited investors.
Over the last two years, an individual must have earned income over the thresholds, either alone or with a spouse. The income test cannot be met by showing one year of an individual’s income and the next two years of joint income with a spouse.
An accredited investor is also someone who has a net worth of more than $1 million, either separately or collectively with their spouse.
A person is also considered an accredited investor if they are a general partner, executive officer, or director of the corporation that is issuing the unregistered securities.
A private business development corporation or an organization with assets greater than $5 million is considered an accredited investor.
In addition, if an entity’s equity owners are accredited investors, the entity itself is considered an accredited investor.
On the other hand, an organization cannot be founded solely to purchase specific securities.
If a person can demonstrate adequate education or job experience demonstrating professional knowledge of unregistered securities, they can be deemed an accredited investor as well.
What Is The Minimum Investment Amount In AcreTrader?
While minimum investments vary from deal to deal, AcreTrader claims that they might range from $5,000 to $50,000.
So far, I’ve observed that $15,000 to $25,000 is a fairly normal range.
AcreTrader’s minimum is unquestionably on the low end of the scale for minimum investments in stand-alone real estate deals.
Two Ways An Investor Will Earn Returns With AcreTrader:
1. Capital appreciation results from an increase in the value of the land (land appreciation).
2. Dividends are paid to farmers in cash rent payments.
Investments in AcreTrader often have to hold periods of three to five years, making them long-term investments. Some AcreTrader agricultural investments will be held for five to ten years.
The company is very selective about which land holdings it chooses to include on its platform. According to their website, they approve less than 1% of the prospects they review.
How Tax Documents Are Handled
Annual cash payouts are made in December, with tax records arriving in February of the following year.
Each deal on the platform is structured as a partnership, which means that as an investment partner, you will receive a K1 detailing your share of any revenue and losses. You will be able to declare these on your personal tax return and receive any corresponding income or deduction.
Furthermore, the revenues will be taxed as capital gains when the property is sold. If held for more than a year, these will be taxed at a lower rate.
As with any investment platform, there are costs associated with investing.
Though it’s free to sign up for AcreTrader and explore their products, there will be costs if you decide to buy.
The AcreTrader platform charges a 0.75 % asset management fee. This asset management fee is paid annually. In comparison to other crowdsourcing platforms, this is pretty reasonable.
In addition, there is a closing fee with each investment that you make, which varies depending on the deal. The average is about 2% of the total investment amount for such property.
Because AcreTrader also provides services to farm owners, it’s vital to remember that they charge a 5% fee when the underlying property is sold. They accomplish this by serving as the transaction’s real estate brokerage and participating in the standard commission. This has no bearing on their investors because the property’s owner will pay the fee.
AcreTrader makes most of its money from the 5% fee charged to farm owners, and the annual management fee is relatively break-even for them.
AcreTrader does not charge a performance or incentive fee, unlike many other platforms. This means that all upsides go to investors, and there is no cap on possible returns.
How Soon Can You Sell Your AcreTrader Investments?
For the most part, investors should think of their money as being committed to a contract for its life. AcreTrader, on the other hand, seeks to establish a secondary market, so there may be prospects for liquidity.
Is There An AcreTrader App?
AcreTrader doesn’t have an app, but it does have a mobile-optimized website.
It’s simple to set up your accounts and fund them and invest in AcreTrader trades using your smartphone as it’s on a Desktop computer.
In addition to that, you’ll have full access to records, your portfolio, and all of the other resources available on the AcreTrader website’s desktop version.
Is AcreTrader Legitimate?
Although AcreTrader has only been giving investment options since 2018, the founder is the largest stakeholder, implying that he has a significant personal stake in the company.
All escrow monies are handled by North Capital Private Securities Corporation, a member of both SIPC and FINRA.
Because all investments are managed outside of AcreTrader, your money is protected even if the platform goes bankrupt.
AcreTrader has a good A+ rating with the Better Business Bureau as of February 2021, which should relieve most investment partners’ concerns about safety.
There is currently no way to predict whether investors on the platform would profit because farmland normally requires a 5-10 year holding period. AcreTrader only completed its initial set of transactions about 2-3 years ago.
Only time will tell if AcreTrader’s agricultural properties are a good investment.
AcreTrader Review: Is AcreTrader A Good Investment?
If you’re an accredited investment partner looking to diversify your portfolio by investing in less dense or sought-after property, it’s worth your time.
There are risks, as with any alternative investments, because extreme weather conditions, such as excessive rain or natural catastrophes, can cause significant damage to farmland or entirely wipe it out.
Water access issues might also reduce land value because certain locations rely on underground water pumps for irrigation.
However, as previously stated, the Farm Team at AcreTrader performs extensive due diligence to minimize these risks.
Having said that, farmland shares will continue to appreciate as additional farming property is developed and the population grows, necessitating higher food output to meet rising demand. It has a viable market.
So far, the majority of AcreTrader’s deals have been low-risk and debt-free. The initial capital raise includes all capital utilized to finance the project.
Can You Really Make Money With AcreTrader?
Yes, you can!
There’s a lot that comes along with Farmland Investing that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with farmland, but if you’re gonna put in the amount of grueling work to do this business (which isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.
AcreTrader Review: Is AcreTrader The Right Real Estate Investing Platform For You?
AcreTrader is suitable for you if you are willing to wait it out and are interested in a potentially profitable asset class.
If you’re new to investing in farmland and want to know more details, it’s a good idea to get more information.
What Customer Support Is Available?
AcreTrader’s website has a FAQ area and a full instructional center. On their “Contact Us” page, they also provide a phone number and an email address. As a relatively young business, it’s easy to contact them.
Where Can We Find More Information On AcreTrader?
Accredited investors can learn more about investing in farmland and how real estate investing platforms operate by visiting their website and exploring the learning center.
They have videos, articles, and other content that focuses on the agricultural sector, commercial real estate, and other real estate investment options.
Their investment platform does not have any apps. Their website, however, is optimized for mobile-friendly surfing.
AcreTrader Review: Conclusion
Because farmland has emerged as one of the most promising asset classes in recent years, as well as the ease of access that AcreTrader gives, even if it’s a relatively new company, AcreTrader is worth exploring.
There is solid legal support for them, and they are certified and go to great pains to vet the farms that are being offered.
Investment deals are more sophisticated here because they are only available to an accredited business partner. Although risky, it’s a wise decision that will offer some diversity to your portfolio of investments.
It’s necessary to consistently mitigate risks associated with farmland investment, such as poor weather conditions, soil sustainability, and other factors. AcreTrader, on the other hand, has shown to be a reputable and increasingly popular investment avenue for those looking to invest in farmland.
Is AcreTrader A Scam?
So, time for the $1,000,000 question – is AcreTrader a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made by owning the assets and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties or double your profit margins on each property. And I can guarantee you that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities AcreTrader, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.