How To Invest In Agricultural Real Estate
As a real estate investor, you want to invest in a market where housing demand outstrips supply. That’s just “Economics 101”.
On the day that you buy, you can estimate current (rental housing) demand vs. supply, and often a few years into the future.
But what if you invested in a real estate type where you could better forecast supply vs. demand fundamentals for decades?
The world’s population is expected to swell from 7.5 billion to 8.5 billion in the next twelve years, 9.7 billion by 2050, and 11.2 billion in 2100. (Source: Wikipedia)
While there are more mouths to feed, earth has lost a third of its arable land in just the last 40 years! (Source: The Guardian)
“Agriculture is going to be the big thing in the next 20 years.”
-Jim Rogers, renowned Economist and Investor
For 3+ years, I’ve been investing in agriculture this way:
- By buying half-acre parcels individually titled to me (for <$25K each). No “Wall Street” dilution.
- The investment produces cash flow from the annual crop harvest. Cash flow starts slow while the young crops mature.
- Turnkey-managed by a trusted, highly professional team: crop growth, harvest, processing, and sale.
- The team adds value through professional agronomy and soil science.
- Environmentally responsible.
- Making conditions better for the farm laborers.
- My land has appreciated 13% per annum since I’ve owned it, in addition to the cash flows. (I don’t expect this same high rate to continue.)
- I’ve walked my exact parcels. The company offers tours.
- The provider is transparent, visible, and communicative.
(I cannot legally “endorse” this investment. This is merely my experience.)
Learn more by grabbing the provider’s great free Coffee Farm Investing Report and / or Cacao Farm Investing Report.
The provider offers parcels producing high-grade specialty coffee in Panama, and high-grade fine flavored cacao in Belize.
I toured my own coffee parcels in 2015, and just returned from a trip to Belize where I toured the cacao parcels. (Cacao is the base product for chocolate.)
I discuss my cacao trip with the company Founder on a recent GRE podcast.
Though residential turnkey real estate investing is my favorite, this agricultural real estate has:
- More predictable cash flows.
- No tenant vacancy.
- No tenant damage to units. The trees show up everyday, they’re quiet, and they know what to do — grow!
- Lower market risk.
- Appreciation potential.
- A low cost of entry for investors at <$25K per half-acre parcel.
- Either invest with cash, or Americans are often eligible to use IRA funds.
Yes, I’ve actually drank coffee with beans grow on my very own cash-flowing coffee tree parcels! (Isn’t that amazing?!) You could too.
How big are the projected cash flows? What are the risks? Learn more by grabbing one or both colorful provider reports about receiving cash flow from agriculture:
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Originally published at www.getricheducation.com on October 30, 2017.
