AcreTrader is currently only open to accredited investors. However, we plan to open up the platform as soon as possible to all U.S. investors, subject to limitations.
Frequently Asked Questions
Everything you need to know about farmland investing and more
Who is eligible to invest on AcreTrader?
If I invest on AcreTrader, do I own the actual property?
While you don’t own a specific location on the subject property, you do have ownership in the entity that holds legal title to the land.
Is there a minimum to invest on AcreTrader?
Most of our offerings require a minimum initial investment of 10 shares, or the equivalent of 1 acre. Given most farmland acres sell for $3,000 to $10,000 each, we would typically expect this to be the minimum on the initial investment.
Who is AcreTrader?
Acretrader is built by investment professionals that have historically invested in land among other assets. We have always sought ways to make farmland a more approachable investment, and believe that AcreTrader is finally a way to provide investors with direct and easy access to this attractive asset class.
To learn more, please visit the About Us page.
Is AcreTrader secure?
Yes. We have taken extensive steps to ensure that all personal data entered into AcreTrader is safe and secure. We use 256-bit encryption, the highest level of encryption commercially available, to ensure that every transaction, financial or otherwise, is secure with the maximum level of protection.
What happens if AcreTrader has business problems?
Each farmland entity (typically an LLC or LLP) is purposefully bankruptcy remote, so that you will retain your legal ownership regardless of any potential business issues with AcreTrader, Inc. In the unlikely event of our insolvency, the entity has instructions to assign reputable external management and counsel administration, and ultimate liquidation per the existing lifetime schedule of the farmland in question. Additionally, this external management and counsel shall become responsible for management and distributions. Please consult documentation for additional details.
What are the costs for using the platform?
Joining AcreTrader and browsing the marketplace requires no obligation. For those who choose to invest, there are some pass-through closing fees associated with each initial investment. In addition to these standard administrative and legal fees, there is an annual servicing fee of 0.75% of the value of the land. This pays for us to manage the land, farmers, accounting, reporting, communications and administration. Our primary revenue source is the fee we charge to the seller, similar to a real estate broker, where we earn a fee from the acquisition and the disposition of land. We are big on transparency and keeping fees low; you can find the specific fee structure for each deal when you browse through our listings.
How does the actual investment process work?
An investment is not final until all legal documents are signed and funding has been contributed and cleared. When an investor makes their investment, the money is held in escrow securely at North Capital Private Securities Corporation, a registered broker dealer, member FINRA | SIPC. Once the fundraising target is met and the real estate transaction is completed, the money is transferred for the sole purpose of the specific property that is being invested in.
When will I get my investment back?
Different properties have different expected hold periods, typically either 5, 10 or 20 years. A hold period is the anticipated time investors will be involved with the investment until the underlying property is re-sold. However, should you want to sell before the end of the hold period, you can list your shares for sale at anytime on the AcreTrader marketplace. It is important to read the offering documents for each investment opportunity for a deeper understanding.
How are legal documents handled on AcreTrader?
All legal documents can be sent and signed electronically through our website. This allows for more efficient and seamless transfer of documents between you and AcreTrader, while maintaining the authenticity and security of your information. Investments are finalized once proper legal documentation is accepted, funds are confirmed received, and the overall offering is fully closed.
General Investor Questions
What are the risks associated with investing in farmland?
Investing involves risk of loss that you should be prepared to bear. No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There is no guarantee that investments in farmland will be profitable. Past performance is not a guide to future performance. The value of investments, as well any investment income, is not guaranteed and can fluctuate based on market conditions. Diversification does not assure a profit or protect against loss. Please see additional risk disclosures here and documentation accompanying specific offerings.
How do I receive my crop income from investments in farmland?
We will typically send the excess cash flow income to the same bank account that the investor provided for their original investment, though we can accommodate changing a distribution bank account by request if needed. Dividends will typically be distributed once a year in December.
Distributions are never guaranteed in amount or timing and you should carefully read the offering documents on the specific deal you are interested in to fully understand how projected distributions look like and what risks are involved.
Selling Farmland on AcreTrader
How do I sell farmland on AcreTrader?
We would love to take a look at your land and discuss our marketplace with you. Our quality standards are high, but should your land be a good fit for AcreTrader, listing it on AcreTrader is free to you. Should the investor bids meet your requirements, the land sale process on AcreTrader is easy, transparent and low cost. Please use the form here to contact us.
What if I just want to sell part of my land?
What happens if you don’t get the price I want for my land?
If you list your land on AcreTrader and the bids don’t meet your requirements, we will simply remove the listing and you owe us nothing. No harm. No foul.
I’m a farmland broker or real estate agent. Can I use AcreTrader to place a listing?
Yes. Our quality standards are high, but should your land be a good fit for AcreTrader, listing it on AcreTrader is free to you. Should the investor bids meet your requirements, the land sale process on AcreTrader is easy, transparent and low cost, with our affiliate, AcreTrader Real Estate, LLC acting as a traditional buyer’s agent. Please use the form here to contact us and learn more.
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