Real estate investing is a common way to diversify one’s financial portfolio while collecting passive income.
While most people connect real estate with commercial buildings, apartments, or single-family homes, there are a variety of real estate assets that benefit from the ground under our feet.
Farmland is one of the essential real estate assets in the United States since it provides food for communities.
While most individuals would never own a whole farm, FarmTogether is an investment platform that enables you to purchase fractional shares of farms, orchards, and other rural asset classes.
This Reviewe will look at FarmTogether to determine whether it is the greatest farmland investment platform available.
First and foremost, I must inform you…
FarmTogether is a real estate investing program. Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this FarmTogether review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about FarmTogether, keep reading.
What Is FarmTogether?
FarmTogether, created in 2017, is a platform for accredited investors to invest in farmland in the United States. Their goal is to promote farmland investments by using a real estate crowdfunding platform in agriculture.
A group of professionals with decades of combined expertise in food, agricultural, and farmland investing manages the platform.
Artem Milinchuk, the company’s CEO, was previously the VP of Operations for Full Harvest Technologies, a B2B platform for purchasing and selling surplus produce.
FarmTogether was started in San Francisco by a team of four people, including the current CEO. According to Crunchbase, they have $3.7 million in venture capital funding.
How Does FarmTogether Work?
The FarmTogether platform functions similarly to other kinds of real estate crowdfunding. This is how they do it:
Their team searches for potential farming areas in the United States that need professional financial advice.
Suppose the property meets their investment requirements (such as crop kind, property location and value, and the operator’s expertise and aptitude). In that case, they will negotiate the terms and sell it on their marketplace.
Then, investors can go through the available properties and their investment profiles (such as target IRR, holding period, cash yield, and how much capital investors have already committed to the deal).
The required minimums begin at $15,000. Depending on the size of your allocation, this is usually low enough to allow you to diversify among a few different properties.
FarmTogether and their contractual partners handle day-to-day crop maintenance and harvest sales after you invest.
Returns are earned in three ways:
- annual or quarterly cash flows from harvest sales
- lease payments from operators, and
- revenues from the eventual sale of the property at the conclusion of the investment holding period.
The FarmTogether platform supports individual and corporate accounts, self-directed IRAs, and 401(k) funds.
Who Can Invest With FarmTogether? Is It Limited To Accredited Investors Only?
To be an investor in FarmTogether, you must satisfy certain requirements. These guidelines guarantee that investors are financially secure and have a backup plan.
To invest in FarmTogether properties, you must be the following:
- An accredited investor
- You must have a net worth of at least $1 million
- Alternatively, you can make $200k each year
How Much Does FarmTogether Cost?
The FarmTogether platform is completely free to use. There will be no fees until you invest. These costs vary and are unique to each property. In general, the FarmTogether fees listed below should be expected:
- A one-time, upfront cost that averages around 2%
- Transaction fee
- Annual management fee
- A yearly charge between 1 percent and 2 percent goes to the partners managing the day-to-day farm operations.
However, it is critical to thoroughly examine the offering documentation because each deal has its own fee structure, and some may even incorporate profit sharing for the managers.
What Is The Minimum Investment?
The initial investment is little. On the low end, $15,000 might rise to $50,000 or more depending on the specific asset class.
It is investing jargon. It might last as little as five years, but it’s more likely to last seven to 10. Some investments may take much longer.
The frequency of net rent distribution. Depending on the investment, rent payments might be issued weekly, semi-annually, or yearly.
Eligible investors. You can invest as an individual, a limited partnership (LP), a limited liability company (LLC), or a real estate investment trust. Farmtogether investors may be US citizens, permanent residents, or foreign nationals.
Eligible accounts. Investment accounts that are taxable, yet can be held in a self-directed IRA account. FarmTogether collaborates with Alto IRA on this project.
Distributions of income. Rent payments might be received quarterly, semi-annually, or annually. Distributions, like annual income, are placed directly into a linked bank account.
Year-end tax reporting. Individual investments structured as LLCs will have year-end results reported on IRS Form K-1. This includes rental income and expenses, which are taxable each year. When the property is sold, any gains will be taxed at lower long-term capital gains rates.
Fees for FarmTogether. The particular fee structure will differ depending on the investment offered. On average, you should anticipate paying an “intake charge” of 0.5 percent to 1.0 percent of your initial investment. You should also anticipate paying an annual management charge, normally roughly 1% of your investment value. However, no fees are levied on the selling of the underlying farmland.
Customer support. Because you’ll need to plan a call, phone interaction is limited. And because the company is headquartered on the West Coast, time zone differences must be considered. The lack of phone contact is common in the real estate crowdfunding industry.
Is FarmTogether Safe?
When you invest in FarmTogether, you own an interest in the farm via a distinct legal entity (often an LLC) rather than a share in the stock market .
If FarmTogether falls into financial problems or becomes bankrupt, your farmland holdings are not at risk.
Furthermore, since FarmTogether is not a farm operator, any interruption in its operations has no direct impact on the farms you invest in.
However, since FarmTogether serves as the asset manager, there will certainly be some (though temporary) interruption to a few items for investors.
Such as access to reporting or documentation, distribution payment, or communications with the farm operator, because FarmTogether plays a key role in managing those things.
There are several safeguards in place to mitigate this damage, with each agreement containing a survivorship plan for continuous administration.
The most significant risk for investors in farmland real estate acquisitions is that the farm will not produce satisfactory results. This can be caused by many factors, such as:
- Weather that is catastrophic
- The operator made a mistake
- Disease or pests
- Commodity prices are low
Or, more often than not, a mix of those above. Due to bad luck or poor farm management, investors may not get the expected rewards if a farm fails to produce projected cash flows.
In the worst-case scenario, a farm may have to be sold—possibly at a loss—if conditions deteriorate enough. It is unusual to occur with well-verified agreements and trained operators, but it does happen. The losses may be multiplied in the worst-case scenario if a debt is involved.
What is the takeaway? Make sure you do your homework. Before you invest, understand the financial institution of any business and determine whether the risks fall within your own risk profile.
Having said that, there’s a lot to admire about FarmTogether and what it has to offer investors. Farmland is not an investment class that many people have had the opportunity to invest in, but its risk and return profile, as well as its future potential, should put it on your radar.
Is FarmTogether A Scam?
So, is FarmTogether a scam? Not technically. You can make money with this program, but it’s definitely not as easy as Artem Milinchuk makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
<INSERT IMAGE HERE> SAYING GOODBYE TO OUR JOBS
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To FarmTogether?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face
Now, the choice is yours. You could continue browsing, looking at opportunities like FarmTogether which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.