Masters of Moments Farmland & Agricultural Investing 101 w/ Trevor Hightower - Partner at Macfarlan Capital Partners
With the help of its carefully-selected operating partners, Macfarlan intends to aggregate a strategic portfolio of small to mid-sized high-yielding agricultural assets reaching a target size of ~50,000 acres, operate for targeted cash on cash return over 6-8%, and exit to an institutional investor achieving a projected 13-15% project-level IRR over the anticipated hold period of 8-10 years.
On this episode, Jake and Trevor discuss:
- The importance of a company mission
- Investing in Farmland
- Deal structures
- Raising Capital
- The importance of mentorship
Links:
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:07) - The impact of the Military on Trevor’s career
(00:08:41) - The importance of a company having a Mission
(00:10:53) - Choosing real estate as a career
(00:18:17) - Lessons learned from the GFC
(00:20:46) - Can you create generational wealth without significant leverage?
(00:24:02) - Investing in Farmland
(00:32:25) - The value of experience in RE
(00:39:52) - Finding great operators
(00:42:19) - Deal structures on Farmland acquisitions
(00:49:25) - Crop share vs. lease models
(00:51:15) - What’s surprised you most in doing due diligence on a farm deal?
(00:53:27) - What does value-add look like in this asset class?
(00:56:56) - Where have you seen things go wrong in your acquisition process?
(00:58:52) - How are you fundraising?
(01:00:06) - The experience of working in a father-son business
(01:05:13) - The importance of reputation
(01:13:41) - Mentorship
(01:07:14) - What is your favorite hotel?