Agriculture Real Estate Investing
We are wanting to test the market for the demand of institutional grade Agricultural/Farmland investments syndicated for individual investors. Some of the key points for discussion:
- Tax Advantages
- Inflation Hedge
- Low-Income Volatility
- High total risk rated returns.
- Counter-cyclical to the general economy
Look forward to questions and great conversations around this asset class.
Most Popular Reply
@Jay Graham
Consider the following situation. You buy 100 acres of crop land in the Midwest for $5k/acre (extremely conservative). If you put 20% down at 4% over 30 years the payment would be $28k/year. You cash rent for $250/acre, for annual income of $25k. This results in a net loss of $3k/year. If you pay cash, you have a 5% ROI. Who knows what's going to happen to land prices. How can they continue to rise when commodity prices are falling?