Joining AcreTrader and browsing the marketplace requires no payment obligation. For those who choose to invest, there are some pass-through closing fees associated with each initial investment, typically 2% of the total offering value. In addition to these standard administrative and legal fees, there is an annual servicing fee of 0.75% of the value of the land paid to our Affiliate, AcreTrader Management, LLC. This pays for AcreTrader Management, LLC to manage the land, farmers, accounting, reporting, communications and administration. Our primary revenue source is the fee we charge to the seller of the farm, similar to that charged by a real estate broker. This fee is typically charged to the selling farm owner and is expected to be charged at a 5% rate when the entire Property is sold during or after the hold period. Note that neither AcreTrader nor its affiliates charge a carried interest fee on offerings, as we believe these returns should accrue to the investor. We believe in transparency and keeping fees low; you can find the specific fee structure for each deal when you browse through our listings and review offering documents.
Frequently Asked Questions
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
These FAQs contain certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “outlook,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” or other similar words or expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, or state other forward-looking information.
The forward-looking statements contained in these FAQs are based on our current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting us will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.