Get the latest in farmland investing and selling farmlandSubscribe
So finally, just a little bit about what to expect when investing. We just covered the investment process of purchasing the shares.
Soon after that, and actually at the point of the investment process, the farm is under contract, but we haven't actually purchased it yet. We're raising the funds from investors to execute that purchase contract, and so usually in the weeks or month after the investment is confirmed, a deed would be uploaded after closing, and you'd be notified that the investment window has closed.
Next would be distributions, you can anticipate annual distributions. Those would typically be delivered to your AcreTrader wallet. Those would be either annual or semi-annual, if not otherwise stated. It would be December 15th, is when you can anticipate those.
Your farm updates: This will be a biannual report of what is actually happening on your farm. You can expect a little summary of weather in the region, any improvements that we made on the farm.
For example, we may be raising an additional $40,000 for an offering to improve drainage on the farm. So you could see updates, both written and and photos of what's actually happening on your farm and some additional timely information.
So if the sponsor of a permanent crop offering just put in a two million gallon pond, we may send a quick notification just to keep you updated with what is happening on your property.
Next year's taxes: This would be an investment in the LLC taxed as a partnership, so you would have an annual K-1 and that's simply just uploaded to your user dashboard where you can find it and download it. Fortunately, farmland P&L is typically a pretty simple one to close out, and so these are very timely. There was one that was early March, otherwise all of the K-1s have been distributed in February. It's our goal to never be the reason you're waiting to file your taxes.
And finally, the exit strategy: Typically, you'll see an investment horizon, or an estimated ownership period of 5 to 10 years, or a range of a few years. And that's because we don't want to be locked in to May of year eight to sell the farm because we don't know exactly what the market conditions will be there.
Our investment committee here will be monitoring those local market conditions, being responsive to any local offer, and so whenever we can achieve the highest returns for you our investors.
At that point, the capital gains to be distributed to the investors, similar to the annual income, to your wallet. And that's the life cycle of a deal.
This video is a segment of a longer introductory webinar covering farmland as an investment, how AcreTrader works, and common questions asked by new investors. You can view the webinar in its entirety, or go to the next video in the series.
Note: The information above is not intended as investment advice. Past performance is no guarantee of future results. For additional risk disclosures regarding farmland investing and the risks of investing on AcreTrader, please see individual farm offering pages as well as our terms and conditions.