Real-World (Hypothetical) Investment Example

  • Acquisition: 1,000 acres at $10,000/acre = $10 million
  • Annual Lease Income: $250/acre = $250,000 annual rent
  • Annual Expenses: $50,000
  • Management Fee: 1-2% of AUM ($10M) = $100,000/year
  • Net Annual Income to Investors: $100,000
  • Appreciation (10 year historical = 4.7%): $470,000 annual appreciation
  • Investor Returns Target (net of fees): 6.2% – 8.4% IRR over a 10-year hold (including accumulated appreciation, low leverage, and rent growth)
Risk Factors & Mitigation