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Now we'll do a quick walkthrough of the actual investment process. This is just an example farm just strictly for the purposes of showing what the investment process is like. Right now you can see the “Invest Now” button on the right side of the screen here. Prior to the offering window becoming available, that would say “Notify me.” And you can sign up for a text alert to have a text reminder sent to you whenever the offering opens up.
If you select that “Invest Now” button, you would first be prompted with your investment amount. And so this would be the number of shares that you would be investing. For row crop farms, share is equal to 1/10th of an acre. So you can see the minimum here for this example is 25 shares, or the equivalent of 2.5 acres. As long as you meet that minimum, you can get pretty close to your target allocation.
Our permanent crop offerings are unit farms. And so there, it would typically be a 25,000 or 40,000 increment that you would set your allocation.
After you select your allocation, you’re then prompted with ownership information. This is where you would select if you want to hold this as an individual, a trust, an entity, and it would pull all the information from that entity profile that you filled out in your user dashboard.
Whenever you select on both of those slides, the allocation, and how you're going to own the farm, will populate an investment agreement, and then you select the investment agreement, and it pops out in a DocuSign window. This is where you can review and sign the investment agreement for the shares of that LLC that you're purchasing.
And I want to call out that in the “Documents” section of the preview farm—so if there's a farm that's going to be listed in, or going to be open for investment in the next couple of days, that preview farm functionality would house all of the soil information, the maps, and the documents. So you can see a template of this and review it prior to beginning the investment process.
But after you sign that—this is mobile-friendly as well, if you're investing on your phone, you can sign these agreements mobilely—you're prompted with your payment information. I detailed earlier the different options for payment. If I had linked a bank account for this example, you would see Michael's Bank of America Checking Account.
If you select ACH would be prompted for the routing and account number. Wire would simply share the wire instructions on the linked bank account, and ACH: Once the investment is confirmed, that would trigger the transfer; the wire is on your end to actually push the funds to fund the investment.
And the last step here is the accreditation verification. So, I mentioned this previously, you would upload your file and the “Choose File” section here for net worth. It's typically easiest to verify with account statements. And you can redact those; you would just need to show account statements with your name dated in the last 90 days, and over one million in assets.
If you're going to verify with income, typically W-2s or tax returns are the simplest form. Also, a professional letter: If you have a CPA, financial advisor, or attorney, they can actually verify on your behalf and upload that. Importantly, this is whichever is the lowest friction for you, though one of those would need to be completed prior to the investment being confirmed.
So you would upload that file, move on to the next step, review all of the information, and you have to select the “Confirm Investment” button at the bottom of the page, and that is actually what reserves the shares. And then you receive your investment ID.
If there are any questions with your verification, you would get an e-mail in the hours or days following the investment. Your shares would still be reserved at your, you know, you won't lose your place in line, but we would need you to furnish those documents in a reasonable time in order to continue holding the shares for you.
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.