Farmland & Agricultural Investing 101 w/ Trevor Hightower - Partner at Macfarlan Capital Partners

Masters of Moments

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:

Macfarlan Capital Partners

Trevor on Twitter

Trevor on Substack

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?