Investing in Turnkey International Coffee Farms
Mark S.Pro Member
Rental Property Investor · KY · Member since 2013 · 1k+ posts · 540 votesI recently heard an (non-BP, don't know if I'm allowed to say where) REI podcast where the guest talked about investing in international coffee farms (in Panama).
The pitch was basically $15,000 for 0.5 acre parcel on an under-performing commercial coffee farm his group acquired with the expectation of a conservative 13% annual yield. There would be a 3+ year minimum hold and the opportunity to sell later, if desired.
His team apparently hires the coffee farmers and provides them a good job, fair wages, health and pension benefits, etc. Often, they simply re-hire existing talent that have already been working on these farms for many years, just under new, better-capitalized management.
It sounds great at first glance, but I feel like I might be missing something. Have you ever invested in anything like this? What questions would you have about it?
I like that it's turn-key, cash-flowing, and I will not have to deal with tenants.
By the way, I like the BP podcasts much better (this one is always a bit "salesy," which is another reason I am skeptical).