AcreTrader

AcreTrader is a real estate crowdfunding platform that allows accredited investors to invest in US farmland. Founded in 2018 and based in Fayetteville, Arkansas, the company aims to make investing in high-quality farmland properties more accessible. AcreTrader thoroughly vets potential farmland investments, accepting less than 5% of opportunities it reviews. The company forms an LLC to acquire each farm property, and investors can purchase shares representing fractional ownership interests in that LLC. AcreTrader manages all aspects of the properties, including working with tenant farmers, collecting rent payments, and eventually selling the land after a typical holding period of 5-10 years.

Key Product Offerings:

Investors purchase shares representing fractional ownership in LLCs that hold title to institutional-grade farmland properties across the US. Typical minimum investments range from USD 10,000 to over USD 30,000 depending on the property. Offerings span various crop types like corn, soybeans, almonds, and timber. AcreTrader aims to provide annual cash yields of 3-5% from rental payments, plus potential land appreciation upon sale projected at 7-9% annually for lower-risk properties. The company thoroughly vets each opportunity, seeking farms with no major issues like flooding risk, water access problems, or lack of an existing tenant farmer.

AcreTrader charges investors a 0.75% annual asset management fee and standard closing costs. Its main revenue comes from a 5% fee paid by the property seller upon sale. The company does not charge performance fees or promote use of leverage in its deals.