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In the realm of alternative investments, AcreTrader and RealtyMogul stand out as platforms offering unique opportunities in the real estate sector.
While both platforms cater to investors seeking to diversify their portfolios beyond traditional stocks and bonds, they differ significantly in their offerings and target audiences.
Let's delve into a comparison of these two platforms to help investors make informed decisions.
AcreTrader specializes in providing investors with access to farmland, a niche yet resilient asset class known for its stability and appreciation potential.
By purchasing shares of individual farm properties, investors can tap into the agricultural sector's long-term growth prospects while diversifying their portfolios.
RealtyMogul offers a broader range of real estate investment opportunities, catering to both nonaccredited and accredited investors.
While nonaccredited investors can access public, nontraded REITs, accredited investors have the additional option of participating in private placements, providing a more diverse array of investment avenues within the real estate market.
AcreTrader is currently accessible only to accredited investors, limiting its reach to a specific segment of the investor population. This exclusivity may deter nonaccredited investors seeking exposure to farmland as an asset class.
RealtyMogul caters to both nonaccredited and accredited investors, offering a more inclusive platform for individuals at various stages of their investment journey.
Farmland Investing 101
Farmland has provided investors with consistent returns for decades, but gaining exposure to this alternative asset has been a challenge in the past.
Today, you can invest passively in farmland through crowdfunded real estate platforms like AcreTrader.
Instead of buying a farm yourself, investors pool their money together. And instead of managing the farmland yourself, AcreTrader takes care of that. They handle everything from the paperwork to finding a suitable farmland renter.
To date, the team over at AcreTrader has funded 149 properties, totaling over $365 Million in equity raised. This has been invested into over 50,000 acres of farmland.
Looking to learn more? Here's our full review of AcreTrader.
This is a sponsored promotion for the AcreTrader platform. Farmland Riches, LLC and it's members may have investments in companies represented on the AcreTrader platform. This informational post is by no means a promotion, solicitation, or recommendation of any specific investment.
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While AcreTrader does not impose a minimum requirement to open an account, the minimum investment amount for individual farm properties typically ranges between $15,000 and $40,000.
This may pose a barrier to entry for investors with limited capital.
RealtyMogul sets a modest account minimum of $5,000, making real estate investments more accessible to a wider audience.
The lower barrier to entry enables investors to allocate smaller amounts of capital across multiple properties, enhancing diversification and risk management.
AcreTrader charges an annual management fee of 0.75% and imposes closing costs, typically around 2%, associated with property transactions. Additionally, a 5% commission is levied upon the sale of an entire property.
RealtyMogul's management fees typically range from 1% to 1.25%, varying depending on the specific investment opportunity.
In summary, both AcreTrader and RealtyMogul offer distinct advantages and cater to different investor preferences within the real estate investment landscape.
AcreTrader appeals to accredited investors seeking exposure to farmland, while RealtyMogul provides a more diverse array of real estate opportunities accessible to both non-accredited and accredited investors.