Discover a Fresh Take on Investing: An in-depth Look at FarmTogether – A Unique Avenue for Investing in Agriculture.
**A Simple Guide to FarmTogether: Farmland Investing Made Accessible**
Are you an investor looking to diversify your portfolio and potentially boost your overall returns? If so, you might want to consider real estate. In recent years, crowdfunding platforms have made real estate investment remarkably accessible—it’s no longer just for those who can buy an entire property.
While many think of buildings or houses when they consider real estate, farmland represents an often overlooked yet historically robust investment opportunity. The primary challenge has been accessibility; it’s rarely as easy to invest in as other forms of real estate or the stock market. Enter FarmTogether.
**What’s FarmTogether All About?**
FarmTogether is a unique crowdfunding platform that focuses solely on farms and agricultural land, bringing these investment opportunities to a broader audience. FarmTogether acquires farmland with a group of investors and then leases or contract-operates it with experienced farmers.
Presently, as an investor, you put your money into a specific farm, not a pool or collection of properties. Each investment is a separate entity, and you become a part owner of that farmland.
FarmTogether’s strategy centers on procuring off-market farmland below market value. It aims to provide returns in two ways: income generated from the farmland and the potential profit from the eventual sale of the land.
The platform was founded by Artem Milinchuk, its current CEO, who brings a wealth of finance and agriculture experience to the table. FarmTogether accepted its first investment in 2019.
Notably, FarmTogether’s investments are currently only available to individuals who qualify as accredited investors. This means you must have an annual income of at least $200,000 ($300,000 for joint filers) for the last two years, or a net worth of over $1,000,000, not counting your primary home.
**How Does It Work?**
Before any investment opportunity is presented to potential investors, the FarmTogether investment committee thoroughly reviews and conducts due diligence on numerous properties with the aid of external experts. Once approved, the details of each opening are posted on the FarmTogether website.
The deals stay open until fully funded or the deadline for investment hits, with most deals being sold out before the deadline. Suppose a deal isn’t funded, all your money gets returned to you. The typical timeline for a deal is between 30-60 days.
Once you’ve invested, FarmTogether provides frequent updates and pays out your share from rental proceeds periodically, depending on the harvest schedule or lease agreement.
Upon reaching the target hold period and when market conditions are favorable, FarmTogether will aim to sell the property and distribute the profits among the investors. Hold periods typically range from 7 to 10 years, although this can change depending on multiple factors.
**What Are the Pros and Cons?**
FarmTogether offers several compelling benefits. It allows for portfolio diversification, serves as a potential source of passive income, and gives you fractional ownership of farmland. Investments could result in substantial returns through both cash flow and appreciation.
However, there are also downfalls to consider. Currently, only accredited investors can participate. The minimum investment, while less than purchasing farmland solo, can still be quite high, ranging from $10,000 to $25,000. Moreover, as a relatively new platform with its first offering closed in 2019, FarmTogether’s track record is limited.
**Is It for You?**
You might find investing through FarmTogether appealing if you are an accredited investor seeking a long-term investment (think 7-10 years) to diversify your portfolio. If this sounds like you, you should visit FarmTogether’s website to explore further.
**Important Details**
Here’s a recap:
– Only accredited investors can invest via FarmTogether.
– Minimum investments usually fall between $10,000 and $25,000.
– The target holding period is generally 7-10 years.
– Investors own a share of a distinct farm, not a pooled portfolio.
– Fees vary by deal, with details on the FarmTogether website.
– Investments opportunities are open to international investors.
– Investors receive monthly or quarterly cash distributions.
– Offerings remain available until fully funded or the deadline is met.
To learn more or start investing, check out FarmTogether.com.