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We'll spend the next few minutes on both how to use the platform and what to expect working with AcreTrader. We’ll go into a detailed description of our offering expectations and the investment process here, but it's important to note that this is a self-service platform. It's incredibly easy to use. And we're happy to assist in any way possible.
So first on offering expectations: Our new offering volume is typically weekly. We’ll have farms that are announced, there'll be a mix of those permanent and row crops that Carter just outlined. They’ll be announced from email@example.com, which is likely how many of you found out about this webinar recording. You can add that to your contact list and we'll also have a preview farm up on our website in the days leading up to the farm being available so that you can review all the details.
The subscription windows vary for each farm. They’re typically measured in days, or even hours sometimes. And that's partly why we have that preview farm available beforehand; we want everyone to have the opportunity to review the offering in detail prior to making an investment decision.
Subscription is simply on a first come, first serve basis. So once the investment window opens up, there's an “Invest Now option on that site. And once we reach, you know, $3 million—if it's a $3 million offering, then the system does not allow for any new investments.
Minimum investment range is typically in the $15,000 to $40,000 range. That's informed primarily by the size of the offering; a larger total offering would typically have a larger minimum investment. There are also some cap table limitations, but we also want to have the minimums low enough that many investors are able to build a diversified portfolio across different offerings if that is what their intention is.
MI: Zooming into the AcreTrader investment process, there are a few different ownership options that you can have. It will default to an individual investment, but you're also able to invest as an entity, like an LLC, a corporation, a trust, a solo 401k, or a self-directed IRA. You would have to do a one-time verification for that, and it's called KYC, or AML: it’s an Anti-Money Laundering verification that is one time for each profile. And you can get that all set up within your user dashboard.
Your funding options within the investment process: We would encourage everyone to link a bank account directly. That makes it much easier for funding an investment, and also makes it much easier for sending you distributions because we can deposit them directly to your AcreTrader wallet. You importantly do not need to pre-fund your wallet to invest; you can transfer the funds during the investment process. The wallet is just primarily used for sending distributions back to investors.
But there are two other options for funding an investment. You can do a one-time ACH, where you would just be prompted for the routing and account number for the account you're transferring the funds from. And you can also select “Wire Transfer” and initiate a wire transfer on your end in the one or two days following the investment.
For the AcreTrader investor accreditation verification: So the way that we liste these offerings, they’re under Regulation D of Rule 506C, which details that we must verify all investors are accredited. And there are several ways to be an Accredited investor. You only need to meet one of them versus all of them, and we're happy to discuss your situation and the lowest friction way to verify your account.
The two most common methods would be to demonstrate that you have a net worth of over one million dollars in assets, not including your primary residence, or income of over $200,000 for the last two years.
If you're investing in multiple offerings—you see here the net worth and income accreditation window—our system can recognize that we recently verified you as accredited. You can bypass that if you've recently been accredited. But if you continue to invest, we would have to re-verify your account. So just have those ready during the investment process. That's where you'll be prompted to upload those documents.
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.