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Harvest Returns is a unique crowdfunding real estate investing platform that stands out from the crowd.
While there are numerous options for real estate crowdfunding on the internet, Harvest Returns specializes in agriculture-related investments, offering something different for investors looking to diversify.
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|Commercial Real Estate Properties
|US Farmland, Timberland, Vineyards
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.
With a minimum investment requirement of $5,000, Harvest Returns opens the door for both accredited and non-accredited investors to participate in agriculture deals.
These investments often involve farmland and timberland and are designed for the long term, with a multi-year holding period typically expected.
Farmland Investing 101
Investing in farming and agriculture through Harvest Returns provides a distinctive form of real estate investing. It offers stability compared to the stock market and involves investing in tangible assets with inherent value.
Additionally, investors have the option to invest directly or through their IRA, though opening a self-directed IRA is necessary for the latter.
How Does Harvest Returns Work?
Harvest Returns structures its investments as SEC-compliant private placement syndications, where investor funds are placed into limited partnerships sponsored by a general partner.
This setup makes the investment relatively passive, although these private investments lack liquidity and secondary markets, often requiring a longer holding period.
Some deals may allow investors to eventually sell their shares back to the deal sponsor or a third party.
Returns on Harvest Returns investments vary by deal but generally offer upper single-digit returns, with some exceeding 10%.
These returns are distributed quarterly or annually, and since its inception in 2016, Harvest Returns has distributed $1.8 million in returns to investors.
While there is no specific information on principal appreciation, investors can expect to at least recoup their initial investment at the end of the holding period.
One notable advantage of Harvest Returns is that it doesn't charge investors any annual fees; related investment fees are covered by those raising the funds and by Harvest Returns itself.
However, it's essential to note that investments made through Harvest Returns do not have FDIC or SIPC protections, meaning there's a potential risk of losing the entire investment.
Therefore, it's crucial for investors to be comfortable with the idea of diversifying their portfolios with a riskier asset class and a longer holding period.
In conclusion, Harvest Returns is a platform worth exploring for investors interested in agricultural real estate and seeking income-generating investments with a multi-year perspective.
However, those requiring more liquidity in their investments may need to look elsewhere.