Summary:
Welcome to the Startup Junkies Podcast!
Our hosts Jeff Amerine, Caleb Talley, and Davis McEntire, were joined by Carter Malloy and Michael Iseman of AcreTrader. AcreTrader’s goal is to simplify farmland investment. It’s no joke that the global population and, therefore, demand for food is proliferating, Carter and Michael believe in offering a truly diversified investment opportunity with long-term returns. Hear how this company is not only leveling up in asset acquisition but also a stellar company culture!
Thanks for joining us!
Shownotes:
(1:03) Introducing Carter & Michael of AcreTrader
(5:07) From Listing to Sign-Ups
(7:49) Farm Styles Offered
(10:13) Due Diligence of Saying Yes or No
(15:53) Adapting to Challenges
(22:09) Evolution of Leadership from a Small to Large Team
(27:50) What Winning Looks Like
(30:45) Craziest Business Experience
(35:22)Advice to Younger Self
(37:18)Wrap Up
Links:
Jeff Amerine
Caleb Talley
Davis McEntire
Carter Malloy
Michael Iseman
AcreTrader
Quotes:
“And as a result, we ended up having a great product. We have really great investments to come through and ultimately really great outcomes for those that we work with.” (4:15) – Carter Malloy
“Within your team, the people who are closest to any particular interaction are going to understand it better than you. So trusting your team, trusting the process, and ultimately trusting the data very quickly, in this case proved out.” (16:46) – Carter Malloy
“We work really hard, but we have a lot of fun too. We celebrate the wins and the milestones, and then everyone comes back and works harder to achieve the next one.” (29:19) – Michael Iseman
Buying The Farm with Carter & Michael of AcreTrader
For those familiar with The Startup Junkie Podcast, you will know Carter Malloy and Michael Iseman. As a bit of a refresher, Acre Trader is a platform that identifies farmland investment opportunities then enables you to buy shares. Not that only, but AcreTrader handles all of the management, administration, and making a completely passive investment. After years of depreciation, when the land is ready to be sold, you would have your portion. The life cycle of the deal becomes the initial investment plus the depreciation return.
With over a hundred million dollars of deals in over a dozen states and tens of thousands invested, we were determined to hear the tricks and tips of how they garnered these accomplishments!
Your People Matter
Who you hire makes the company. This may be the thing that AcreTrader cares about above all others. This means a slow hiring process and a fast-firing process. Maintaining talent density and a healthy work environment, which they are proud to work at, is not just a want but a need.
“And as a result, we ended up having a great product. We have really great investments and ultimately really great outcomes for those that we work with.” (4:15) – Carter Malloy
Democratization and first come, first serve has proven this to be a fascinating asset class. The desire is to have more and more people participate, so when one or two large buyers take out chunks of land, the response is to continue hiring more people and finding more farms.
AcreTrader has a team of farm analysts, financial analysts, and data scientists scouring the entire United States, only accepting the best, most exciting offers. Even though demand rises and supply goes down, they never have to lower their standards of where they’ll say “yes.”
What deems a yes is not just found upon a quantitative basis, but a large amount of qualitative analysis occurs with the human interaction of the tenants.
Specialty Crops
Something that makes AcreTrader stand out among the rest is its focus on specialty crops. By allowing investors the opportunity to participate in crops such as almonds, apples, or pecans, they get a chance to see consistent cash yields.
On their website, there is a spectacular competitive matrix by asset class showing where farmland sits versus the stock market. Check that out for all of you visual learners!
Challenges
A shift that helped AcreTrader exponentially was shifting its audience. The marketing team collaborated and changed the messaging and targeting to consumers who were not just looking for one-time transactions but already owned a piece of land. Those who were expanding and looking to continue but did not have the capital could steer clear of debt service or conventional finance. It’s a win-win.
“Within your team, the people who are closest to any particular interaction are going to understand it better than you. So trusting your team, trusting the process, and ultimately trusting the data very quickly, in this case proved out.” (16:46) – Carter Malloy
Moving from a family to a village to a tribe has been the most considerable success and challenge. To keep culture and values, to not let go of hiring standards and vision while growing at a pace bigger than the original team can manage takes a major effect on the day-to-day operations. When all is said and done, it takes trust alongside a willingness to try again.
What Winning Looks Like
AcreTrader is already breaking the norms of the asset class, but the main goal is to create better outcomes for their clients. Carter believes that if that is the foundation, success, growth, and fun will also come.
“We only got so much time on this earth. You gotta have fun today. If you’re not having fun today, then think about doing other things.” (28:52) – Carter Malloy
One of the core values is to celebrate the wins. The big and small wins are celebrated together as a team, and the next goal to achieve is set out for as a team.
Lastly, winning looks like thinking bigger and pushing back against the current of complacency.
“It’s easy to get comfortable doing something that you know how to do or taht you’ve already done… but when there’s so much opportunity, just think bigger and make sure to go after it.” (36:42) – Michael Iseman
We are so thankful for Keep up with us each week as we get to speak to more women and men about their adventures into the entrepreneurial ecosystem. Want to learn more about our services here at Startup Junkie? Contact us today!
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