Achieving ‘Accredited Investor‘ status was (as my father would say) burning a hole in my pocket.
So What did I go and do?
If you guessed ‘bought into a salmon farm’ you would be both weird and right.
Farmland was the asset I was planning on snagging with my new ability to invest in rich guy risk. I figured it was stable and the returns look good (north of 8%). There are a handful of companies which help you do just that. Here is a brief list I got from over at the Motley Fool;
FarmFundr is a crowdfunding platform that allows accredited investors to invest in a variety of opportunities like farmland and agricultural facilities.
FarmTogether is an online marketplace for farmland investing. It provides accredited investors with direct access to pre-vetted U.S. farmland investment opportunities. Investors can invest directly in specific farms or in a fund that holds several farm investments.
Farmland LP focuses on buying commodity farmland and converting it into more valuable organic farmland. It offers accredited investors the opportunity to participate in a private equity fund that has the flexibility of eventually becoming a REIT and going public.
Harvest Returns is a crowdfunding platform offering a variety of agricultural deals that are mainly open to accredited investors.
Steward is a crowdfunding platform focused on investing in sustainable farms. It aims to provide farmers with capital (in the form of loans) to sustain and expand their farms. Its initial offering, Steward Farm Trust, will own a portfolio of loans made to farmers and will be open to all investors with a low minimum investment of $100.
After looking them over and testing out how annoying it would be to browse without commitment (Everybody wants you to start an account there first).
I went with Harvest Returns.
This particular investment was somewhat unorthodox compared to most agricultural investments. It was also not cheap.
Most of the offers were to buy into land or crops or livestock and get an annual dividend plus the promise of appreciation. That is what I intended because that makes sense and is pretty stable.
No, I went with a $20,000 up front investment in a business model that has yet to turn a profit and will not see any return until 4-6 years from now. But here is what I liked about it.
I am one of those conspiracy guys who always thinks the world is going to end. I think the outlook for fishing the oceans is bleak to say the least. Then there are the fenced in ocean ponds for salmon farming outside. This method still involves a lot of chemicals and antibodies to control the environment. And most of those are Atlantic Salmon.
LocalCoho (The name of the company I invested in) is an indoor facility that raises Coho salmon. Way higher start up costs, but then nice controlled environments.
The Coho salmon farm is past a proof of concept stage and is ready to ramp up. Hopefully with my help.
Later on, I will have the option to sell out or roll over and get a bigger chunk of the equity stake through Harvest Returns. Our pooled money as an LLC will own a percentage of the company.
I like this salmon farm because I feel good about, aquaculture is very future forward.