One overwhelming piece of feedback that we have heard is that some of our investors would like to have options for liquidity earlier than the end of the hold period (granted, some of you have also asked for much longer hold periods of 10-20 years—this is coming too, stay tuned!).
Other platforms in the crowdfunding investment space, such as Cadre, are already successfully operating these types of secondary liquidity markets. FarmTogether is planning to roll out a Secondary Market Pilot in September 2020.
Here is how the Pilot is projected to work.
Once a year, beginning in September 2020 for our El Nido almond investors, existing investors will be able to offer some or all of their units of ownership for sale.
This option will be available on all our current and future deals unless constrained by the specifics of a particular deal.
We are excited by the success of this program on other platforms, and we look forward to bringing the same capabilities to our investors!
See current investment opportunity: the Chester Farm is going fast! The deal offers a net IRR of 11%+, ~11% average cash yield, and a 7- year target hold period. We have secured an operating agreement with an excellent and reputable operator for this property. We anticipate that this orange and almond farm will be open to the Secondary Market as early as April 2021.
Disclaimer: The Secondary Market rollout is subject to FarmTogether, Inc and its principals securing all the necessary legal licenses and approvals from federal and state regulatory bodies. We cannot guarantee that we will be successful within the timeframe specified. We cannot guarantee that every investor will be eligible to participate in the Secondary Market. Current or new regulations may prevent us from rolling out the Secondary Market option. Non-US investors may be subject to additional restrictions. Please consult your own counsel with respect to any tax or legal implications with respect to the Secondary Market.
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