The Top Benefits of AcreTrader
May 3, 2021 (Investorideas.com Newswire) AcreTrader is a unique, niche-specific investment platform for investing in the agricultural sector. Specifically, AcreTrader provides investors the ability to invest in agricultural real estate through crowdfunding. If you ever dreamed of owning a farm, you can easily own one with a minimum investment of just $10,000. Investors make money from land appreciation and tenant fees.
AcreTrader has been featured on leading investment advice media, including The Motley Fool, Bloomberg, Forbes, and more.
Agricultural is here to stay; it is a vital food source for humans and farm animals alike. With the ever-growing population, it's hard to imagine the agricultural sectors decrease in the long term. To learn about the top benefits of AcreTrader, read this entire article!
Check out this excellent AcreTrader review for an in-depth look and rating of their service.
AcreTrader has a Small Upfront Investment
AcreTrader allows you to own a piece of farmland for a minimum investment as low as $10,000. Land is a limited resource, and AcreTrader offers an easy way to invest in this type of real estate. Investors can get exposure to the agricultural sector and make money off of it through rental and appreciation.
AcreTrader only selects the best farms for their platform. They review thousands of parcels and only choose less than 1% of those to list for customer investment. As such, if a property is on the AcreTrader platform, you can be confident that it is fully vetted.
Each farm (and legal title) are put in a unique entity such as an LLC by AcreTrader. As an investor, you can view all available farms through their platform. Each listing provides details such as the minimum investment for the specific property, the "AcreTrader Rating" (an A through D rating), a thorough description of the property, a farm map, type of crops, average annual return, gross cash yield, additional financial information, and other relevant documentation.
As you can see, you can view all relevant information on the farm before you make your investment decisions.
AcreTrader is Certified
AcreTrader has only been around since 2018. With it being that new, some investors may question if it's a legitimate, stable service. The founder, Carter Malloy, has a significant stake in the business- he is the largest shareholder in the company.
Additionally, all their funds are in escrow with North Capital Private Securities Corporation (NCPSC). NCPSC is a member of both FINRA and SIPC, so your investment is insured. Owning property is a neat method to reduce risk in your retirement plan. Plus, all your investments are made outside of AcreTrader. So, if they file for bankruptcy, your money is still safe and sound.
AcreTrader Allows You to Own Farmland
If you ever wanted to own land, or particularly a farm, AcerTrader is an excellent avenue for that. While owning land is satisfying in its own right, purchasing farm real estate is satisfaction on a whole other level. Farmland gives back to the community through the food it produces and the work it provides. It also gives back to you through tenant income and appreciation.
However, "owning" land or a farm through AcreTrader is not proper land ownership. You only own a piece of it, with many other investors. It's crowdfunding, and you are only a partial owner. With that being said, having partial ownership of a farm is better than owning no farm at all. For example, a small farm may be worth over $1M, which most Americans cannot afford. With AcreTrader, you can buy in for just a tiny fraction of this- down to $10k.
Annual Cash Flow from AcreTrader
Arguably the most significant benefit to AcreTrader is the annual cash flow it provides. You, as the investor, can make both rental and appreciation income yearly by investing in farmland through AcreTrader. However, you have to be a qualified accredited investor, which is a downside. AcerTrader is working on adding support for retail investors, though.
If you need a high-yield savings account to deposit your farm cash flow, start by looking at this review of Axos Bank. They offer a rate 5-6x higher than the national average.
The annual income is excellent and considering that farmland helps diversify your investments and has a great track record of long-term returns, many investors are flocking to farm assets. Diversifying your investments across different asset classes might be difficult to track each month. Financial planning platforms can make your life easier- check out this Tiller Money assessment for more info.
Farmland has low volatility, low leverage, an attractive yield that typically outpaces the stock market, and is an excellent hedge against inflation. As you can see, owning a farm can be a great, low risk and high-yield investment.
No Management Paperwork Required with AcreTrader
When you invest through AcreTrader, you don't have to act as a landlord or property manager. You only ever own shares of a farm. This frees up a lot of time, energy, and paperwork compared to owning a property outright.
Sell Your Shares on AcreTrader
Some people enjoy buying and holding investments for the long term, in other words, many years. Buying and holding allows investors to benefit from years of compound interest, which maximizes their growth. While AcreTrader recommends you hold your farm ownership for 5-10 years (to the terminal date), you may be able to sell your shares on their platform at any time.
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