Real Growth, Resiliency, and Diversification through Agriculture

Everyone needs a place to live and EVERYONE needs to eat. 

In good times and bad, we all need food. For centuries, agriculture has been synonymous with wealth and productivity. 

(Maybe that’s why they call it “produce!”) 

Agriculture relies on real estate. It also provides investors with an opportunity to create cash flow from cash crops. 

So, we’re revisiting the opportunities in agriculture … even in the midst of a rapidly changing world. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your high-growth host, Robert Helms
  • His fruity co-host, Russell Gray
  • Agricultural investing expert, David Smith

Listen


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Opportunities in agriculture

We love all kinds of real estate investing, and we’re spending a few weeks talking about what you might consider to be alternative investments. 

Today, we’re talking about a real estate investment that can make a ton of sense if you’ll just open your mind … agricultural real estate. 

Agriculture was THE original use of land. People have been investing in agriculture for thousands of years. 

Agriculture produces something of high value … food and commodities for textiles! 

The population is increasing. Everyone born needs calories … and yet the resources to produce calories across the globe are either diminishing or the costs are increasing. 

So, today we see lots of opportunity in the agricultural space. 

If you will, your tenants are trees … so things like tenant and landlord law go out the window. 

And you don’t have to get the geographic market as exactly right as you do when you’re buying an apartment building.  

Agriculture also offers an opportunity to diversify some of the risks that are present in other assets during changing times. 

What does agriculture investing look like today?

David Smith is an agricultural investing expert. Why does he think people should consider agriculture?

“First and foremost is the diversification of your investment portfolio,” David says. “Also, agriculture in general creates generational wealth.”

Agriculture is a long-term investment in many cases. You’re looking at 10, 20, or even 25 years of producing … while most tenants typically stay a year or two. 

When you think about agriculture, you may envision fields with corn or wheat or rice. But a lot of commercial produce grows better in a greenhouse. 

“You just have to open your mind to see that agriculture doesn’t mean just rows out on a highway. There’s lots of different kinds of agriculture,” David says. 

So, part of agriculture is picking the right market and product for you. 

Paraguay

Let’s talk about markets. There are areas of the world that are just more prone to agriculture. 

“It’s just as important to pick the right product and the right country,” David says. 

David’s team focuses, for example, on Paraguay. Paraguay exports produce all around the world. But David and his team work with the internal market within the country. 

Paraguay has more freshwater than any country in the world by way of aquifers and rivers. It also has very small changes in climate. 

There are about six weeks of winter that take place between August and September. Then, it goes right back to warm weather … making it conducive to growing year round. 

The land in Paraguay is also very fertile. “You can grow anything,” David says. 

In farmland, the composition of the soil is critical. You need to know the nutrients, the density, and what is going to grow well there. It can also help you determine the best tactics for pest control. 

David’s team uses a unique strategy in Paraguay. Instead of exporting to other countries, they focus on selling in the local markets. 

Paraguay currently imports large amounts of food. But by growing locally, David and his team can sell their produce locally for a lower price than the imported products and carve out a solid piece of the market for themselves. 

Getting started in agriculture investing

So, how does investing with an organization like David’s work? 

There are currently two investments … oranges and greenhouses. And there are two main components. 

The first component is simply a real estate transaction. 

“You have a  purchase contract for buying land. Then, the land is dismembered from the main master plan of the plantation. A new title is created in your name or the legal entity that you prefer to use,” David says. 

The second component is the farm service agreement … an agreement between the investor and the farming company to operate the plantation and care for your land and your crops, harvest the produce, and take it to market. 

From that point on, it becomes a completely passive, hands-off investment. 

“The only exception is in the case of greenhouses where after 10 years, an additional amount has to be paid for refurbishing and renovation,” David says.  

The greenhouses aren’t the small backyard version you are familiar with … each is 6/10 of an acre!

In the greenhouses, David’s team is growing vegetables that are used in almost every meal in Paraguay … tomatoes, cucumbers, and peppers. These can grow year-round and offer year-round cashflow.

The oranges on the other hand are a once a year crop with a large once a year payout.  

Essentially, these are a hard asset, passive turnkey investment.

To learn more about agriculture investing … listen to the full episode!


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Agriculture Investing – An Opportunity to Diversify Globally

Everyone needs a place to live … and everyone needs to eat.

Food is the original wealth. The world’s population is growing … and there are more mouths to feed every day!

Investors don’t have to limit themselves to properties with assets like houses, commercial buildings, or shopping malls.

You can harvest dollars from land that doesn’t have anything to do with tenants … and has everything to do with crops.

Agriculture investing is one of the most enduring and common sense investments there is.

Learn firsthand how money CAN grow on trees from a well-seasoned expert in international agricultural investing.

In this episode of The Real Estate Guys™ show, hear from:

  • Your food-for-thought host, Robert Helms
  • His food-loving co-host, Russell Gray
  • Expert agricultural investor, David Smith

Listen

 


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Digging into agriculture investing

We live in a big world with lots of mouths to feed … that means lots of crops … and lots of ways to profit.

In the past, agriculture investing was a difficult business to get in to on a small scale. If you didn’t have huge capital to buy huge plots of land … you were hugely out of luck.

But in the last several years, we’ve seen lots of folks who have figured out a way to let mom and pop play alongside them.

When it comes to investing in agriculture real estate, the pizza theory comes into play … fitting since we’re focusing on food.

Someone buys a large pizza. They take it to a party, cut it into slices, and sell each slice for a little bit of a markup.

At the end of the day, the person who brought the pizza makes a little bit of profit for their effort … and everybody gets to have a slice of something they might not be able to afford on their own.  

In agriculture, somebody buys a large parcel of farmland and puts all the operations and distribution channels in place.

Then, they divvy up a slice of the deal for a small markup to give many small investors the chance to play in that space. We see this as a great opportunity.

Everyone needs to eat

Crops come in all sizes, shapes, and degrees of durability … not to mention that different regions of the world have different opportunities.

In real estate, we often talk about getting the market right. Buying an investment property in the wrong market can get you into trouble.

But with crops, it’s not exactly the same.

It doesn’t really matter where the hungry mouths are … and it doesn’t matter where the food is grown.

Wherever the best farmland is … that’s where you want to buy. With today’s shipping technologies, you can get the food wherever it needs to go.

Another perk of agricultural investment? It is a staple. It meets a basic human need … just like housing.

Everyone needs a place to live … and everyone needs to eat.

And the population … the number of consumers demanding food … is steadily GROWING.

Crops and cash flow in Paraguay

David Smith is an experienced investor. He started in real estate, and for the last several years, he has been involved in agriculture in Latin America.  

After many years living and working in real estate in Latin America, David knew he needed to diversify.

After some due diligence, David decided to invest in agriculture.

“I was so interested in the business model,” David says. “It was a passive, turnkey investment not subject to the whims of the market. I really liked the security of it.”

David landed in Paraguay … a big farming country a bit off the radar … and invested in oranges.

Why oranges?

David says one of the biggest things that struck him about this particular crop was its durability. It also has a great distribution area.

Paraguay imports about 85 percent of all the citrus products consumed in the country.

“We can’t even meet the demand in Paraguay, let alone try to export yet,” David says.

Today, David is expanding to new segments of citrus fruits like lemons, limes, and sweet limes … ingredients that are important in the local diet.

Paraguay is traditionally a row crop producer … foods like soybeans, wheat, corn, and chia. It imports citrus from Brazil and buys greenhouse vegetables from Argentina.

Looking for ways to provide foods locally that are traditionally imported can open up lucrative niche opportunities in agriculture.

By providing a local alternative to imported foods, David provides a cheaper option for local grocers while creating income for his investors.

Going bigger with greenhouses

Like any investment niche, creative solutions can pay off … literally.

In Paraguay, one of the biggest challenges to growing vegetable is the heat.

“Paraguay gets very hot … and when I say very hot, I’m talking Tucson hot. It can be 120, 130, even 140 degrees in many locations,” David says.

The vegetables grown locally under normal farming conditions don’t grow very well. Their growth is stunted, their colors aren’t as bright, and they don’t taste as good as imported vegetables.

That’s where GREENHOUSES come into play.

By growing high-use … and typically high-priced … vegetables in greenhouses, David and his team can provide a local, tasty, and affordable solution to consumers.

This also provides a unique opportunity for investors. Instead of investing in land, individuals can purchase a greenhouse.

Each greenhouse is approximately 26,000 square feet … that’s a good amount of space for growing some green.

Greenhouses are also a popular investment because of their quick returns. Most investors will receive a return after just one year of making their investment.

“It’s a very stable business that runs 24/7,” David says.

And it’s a business that you don’t have to worry about managing. David and his team employ expert staff members that specialize in growing each crop.

These employees are even more motivated to provide extra levels of care, because they share in the profits.

“We offer them bonuses based upon produce amount, not net profit. In turn, they really put a loving touch into their work,” David says.

Determine if agriculture investment is right for you

Most Americans haven’t invested overseas.

There are a lot of reasons for this … but one of the biggest is not understanding how things operate on the ground in a different country.

That’s why having a local team managing the day-to-day of your investment is so powerful … especially in a niche like agriculture.

Just like any other investment opportunity, it’s important to do your due diligence.

David and his team help investors get a feel for agriculture by providing informative tours of their operation in Paraguay … and he also prepared a new, informative special report Citrus Fruits in Paraguay Investments that Grow Naturally.

Whether or not this particular opportunity is right for you, expanding your thinking to a bigger picture of real estate than just houses and hotels is important … and can yield lucrative results!


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Citrus Fruits in Paraguay – Investments that Grow Naturally

Citrus Fruits in Paraguay – Investments that Grow Naturally

 

The climate in Paraguay is ideal for growing citrus crops and the demand for produce is strong! 

With farmland in limited supply and the demand for
food increasing annually, investing in agriculture has
always been considered as relatively safe.

Paraguay has been one of the fastest growing economies over the past 10 years.

It’s abundance of natural resources and subtropical climate conditions make it ideal for growing citrus fruits.

By investing in Citrus Fruits you’ll  …

  • Become owner of a hard, physical asset
  • Receive passive income from the citrus crops grown on your land (your returns
    aren’t correlated with the financial markets, providing a great diversification opportunity)
  • Invest in a country with a stable growing economy, have a competitive tax regime and easy
    access to low cost energy and labour

Ready to receive passive income from the citrus crops grown on your land? Simply fill out the form below to get your free copy of “Citrus Fruits in Paraguay – Investments that Grow Naturally


 


Paraguay Citrus & Greenhouse Plantation Tour

Paraguay Citrus & Greenhouse Plantation Tour

 

Dates Coming Soon!

To be sure YOU are among the FIRST to know when the next tour is scheduled, join the Advance Notice List.

 

Discover the exciting growth potential of agricultural investing in Paraguay, presented by The Agri-Terra & Paraguay Ag Invest Team!

 

The tour will be packed with education … and produce!  Plus you’ll dive deep into a real-life farming operation and get an opportunity to get in the game of global investing in the agricultural space. 

Food is a commodity everyone needs.  In a bubble market, concerned investors are drawn to farmland and agricultural commodity investments.

 

Owner and CEO of Agri-Terra KG, Carsten Pfau, will spend some time teaching about what to look for when considering investing globally in agriculture.  

 

While jurisdictions, property rights, and natural resources are not created equal all over the globe … there is growing opportunity in offshore agriculture that savvy investors are picking up on. 

 

Agricultural investments give you the chance to make long-term, consistent income.  

 

Now you can explore how to farm for profit … without getting your hands dirty!  

 

Discover a couple of ways you can get paid for meeting the global needs of the every-increasing demand for FOOD  … by owning farmland and “little green houses”. 

 

Carsten Pfau and his experienced team will guide you on a tour of Paraguay Ag Invest’s beautiful plantations.

 

 

During your tour of the Paraguay plantations you’ll ….

 

  • Experience first hand the agricultural strength of Paraguay and why it is rated so high by many investment experts today

  • See citrus sapling trees and over 115,000 growing orange trees up to 4 years old

  • Tour 20 fully operating greenhouses and learn about the latest in greenhouse technology 

  • Meet the experienced farm engineers and local farm workers

  • Owner and CEO of Agri-Terra KG, Carsten Pfau, for conversational dinners learning about his experiences investing globally for many years

  • Ask all the questions you have about global and agricultural investing

  • Experience another culture

  • Meet other like-minded investors who are pursuing agricultural investments

  • Have FUN!

Trip Diary:

Each tour may vary slightly.  Upon reservation you’ll receive the latest agenda.

Saturday – Arrive in Panama, have dinner with the Paraguay Ag Invest team who will accompany you to Paraguay

Sunday  – Depart for Paraguay on an afternoon flight to Asuncion, arriving before midnight

Monday – Some morning R&R after traveling, mid-day educational presentation with Carsten Pfau, and enjoy dinner

Tuesday – Full day citrus and greenhouse plantations tour (depart 9:30am), enjoy dinner again with Carsten Pfau

Wednesday – Departure for Panama & Home

 

You’re the guest of honor!  All your ground transportation to and from the airport, your stay in a 5-star hotel and all your delicious meals are covered.  (You pay for your airfare)

 

The tour reaches capacity at 12 guests in order to ensure the best possible experience. 

 

Dates Coming Soon!

To be sure YOU are among the FIRST to know when the next tour is scheduled, join the Advance Notice List.

Raising Capital with Cattle in Paraguay

Raising Capital with Cattle in Paraguay

 

Invest in a true cash cow! Buy into your own cattle herd in Paraguay and watch the returns roll in.

 

In the northern pastures of Paraguay, bovines reign supreme. The fertile soil provides good eats to the millions of cattle that graze and grow there.

And boy do they grow! These South American cattle can gain over a pound a day.

Paraguayan beef is exported to more than 65 countries all over the world. Get your own slice of this profitable agricultural market by partnering with Agri Terra … and investing in your own herd of cattle.

Agri Terra consists of a team of highly qualified and dedicated specialists who completely service your herd on your behalf. This set-up offers constant value appreciation with protection against inflation.

Learn why cattle growing is a booming business with this special report from Agri Terra! Delve into specifics about what makes cattle a great investment and why Paraguay produces the best beef you can find.

Simply use the form below to request your complimentary copy of Raising Capital with Cattle in Paraguay.

Growing Greenbacks in Greenhouses in Paraguay

Growing Greenbacks in Greenhouses in Paraguay

 

One thing everyone on earth needs is food! That’s why greenhouse farming can be a secure investment … and Paraguay is a smart place to do it.

Long ago, some ancient human decided that growing food was safer than trying to chase it down. Since then, the agriculture sector has never stopped GROWING.

It’s simple. Demand has grown as the global population soars … expected to come in at 9.7 billion by 2050. In our opinion, NOW is the perfect time to consider agricultural investments … and there’s lots to intrigue us about Paraguay.

Paraguay is one of the most productive agricultural countries in Latin America. Its products feed some of the largest countries in the world … like China and Russia. Its mild climate, year-round sunshine and abundant natural water sources give it every ingredient for growing great produce.

Modern methods have made Paraguay’s fertile farms even more profitable through the use of greenhouses … an artificially controlled environment that ensures reduced disease susceptibility and increased crop yields.

In this special report you’ll explore:

  • The advantages of greenhouse farming … including reduced labor costs
  • Key details on greenhouse investing in Paraguay
  • An overview of greenhouse construction and irrigation
  • And much more!

See all the benefits of high produce yields, reduced plant disease, lower labor costs, and consistent crop production through greenhouse farming in Paraguay.

Start now by filling out the form below. We’ll send you a complimentary copy of Growing Greenbacks in Greenhouses in Paraguay.

 

 


Paraguay Ag Invest – Carsten Pfau

Paraguay Ag Invest – Carsten Pfau

 

Step into the world of AGRICULTURAL INVESTING!

 

Carsten Pfau and his experienced team will guide you to PASSIVE PROFITS investing in peaceful Paraguay.

Consider generating long-term yearly returns as an owner of your very own Paragayuan plot of land. You’ll be seeing GREEN!

Carsten has been personally investing in traditional real estate and agricultural real estate for years and years. He has a business degree from Mannheim University and lived in Paraguay for over twenty years … He knows the language and the culture.

Expand, diversify and GROW your portfolio!

Leverage Carsten’s business-minded sensibility, familiarity with the terrain and his powerful, boots-on-the-ground team.

YOU can OWN farmland … without actually having to manage a farm. Professional farming experts do all the work of running things for you … You enjoy the profits.

So what kind of farm are we talking about? Glad you asked!

Partner with Paraguay Ag Invest and before you know it … You’re a proud Paraguay landowner and producer of sweet, ORANGES, grass-fed CATTLE and FRESH PRODUCE.

YOU can DIVERSIFY your portfolio into OFF-SHORE agricultural LAND that produces a basic human need … FOOD … in GLOBAL DEMAND!

It’s actually quite simple to get in this game. And last time we checked, land and food are not going out of business any time soon.

Intrigued by the possibilities … Contact Carsten and his team to get more information on how YOU can invest in Paraguay farmland

Simply fill out the form below, and the folks at Paraguay Ag Invest will be in touch.

 


Growing Profits Naturally with Farmland Investing

A diverse portfolio offers you a cushion … if one investment suffers, you won’t feel the impact across your entire portfolio. One method for portfolio diversification is to step outside home or apartment investing … and into farmland investing.

Investing in a commodity like produce or cattle allows you to lose your focus on an individual market and start focusing on the GLOBAL market for your product.

Like any real estate investment, there is a learning curve to figuring out agriculture … especially when you’re growing and exporting produce outside your home country.

But agricultural investments are worth the effort … they offer the best of all worlds, combining agricultural income with land banking and offshore strategy.

In this episode, global investor Carsten Pfau discusses his journey into the world of agricultural investing … and offers ideas on how YOU can get started as a passive investor in this low-risk option.

In this episode of The Real Estate Guys™ show you’ll hear from:

  • Your orange-loving host, Robert Helms
  • His like-a-lemon co-host, Russell Gray
  • Carsten Pfau, manager of a thriving international real estate business

Listen

 


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Broadcasting since 1997 with over 300 episodes on iTunes!

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How Carsten Pfau got planted in Paraguay

Trees don’t understand what’s happening at the Fed. They just grow. And the fruit, vegetables, and nuts they produce fulfill a fundamental, permanent human need for food.

Bread-and-butter commodities like agriculture will be valuable forever … that’s one reason we were so excited to chat with agricultural investor Carsten Pfau.

Carsten’s family is established as real estate developers and investors in his native Germany and in South America.

He decided to shift from traditional real estate to agricultural investing for one big reason … “You can sell agricultural products word wide.”

That’s one reason agriculture is so great. It’s less about getting the MARKET right, and more about getting the PRODUCT TYPE right.

For Carsten, the primary product is oranges. He also grows vegetables and grazes cattle.

When he stepped into the Paraguayan market with his brother Michael Pfau, Carsten quickly realized oranges were a great choice. Eighty-five percent of the oranges sold in Paraguay are imported, so there’s a huge market for locally grown produce … and potential for favorable margins.

Why Paraguay? One reason is its competitive cost structure. Because it is a developing country, costs are low, but there’s tremendous opportunity to innovate and bring in new technology … resulting in excellent profits.

Paraguay is great, but in order to do business there, Carsten says he had to learn the language … and the mentality. Every nation has different cultural mores, and identifying and learning them is essential to business success.

Growing from the ground up

Carsten says growing his business was an “amazing process.” When he opened up his orange plantation to investors, he expected 10-15 people to join in.

Instead, he ended up with 500 investors.

Agriculture requires a scale approach … the larger you are, the more efficient you can be, and the higher your profits. That’s why Carsten started syndicating.

He also says demand for oranges is growing so quickly that the biggest challenge is growing more. It’s the opposite of traditional real estate … instead of recruiting buyers and renters, he can sit back and CHOOSE from all the buyers who are coming to HIM.

We asked Carsten how he figured out the science of agriculture.

Carsten told us every plant he buys for his home dies … so his oranges aren’t thriving because of his green thumb!

They are thriving because he has compiled a team of the best experts in the business. His advice for investors is to “never think you know it all.” Instead, admit your strengths and weaknesses and join forces with talented people.

Plant your feet in a plot of your own

Agriculture can be daunting because it requires a lot of specific knowledge. One option for investors who want to get involved but don’t have the time or interest to get their hands dirty is passive investing.

“People are interested in two things,” says Carsten, “owning land and getting a cut of the action.”

Carsten combined these two things in his own business by offering investors the opportunity to buy the rights to their own parcel of land … and then sign a farming agreement with his management company, which plants, cares for, and harvests the trees.

This type of investment offers the best of two worlds … a land investment that appreciates over a long period of time, PLUS regular income from the produce.

Investors do have to wait about four years after their initial investment to start seeing proceeds. That’s how long it takes orange trees to mature and start bearing fruit.

Parcels start at 1.2 acres. For an initial $35,000 investment, clients get payroll for the Pfau’s workers, pest control, watering, and the trees themselves … and they never have to pay anything again.

Profits range from $5,000 to $12,000 per plot per year … and continue for 25 years, the span of the trees’ life. That’s a pretty good ROI!

Why agriculture?

“I like traditional real estate and still do it,” says Carsten. But the approach is very different. Marketing, financing, and selling are all different challenges.

The upside? “Here we can sell nation- and world-wide.”

“I like that I can lean back and choose when to stop,” says Carsten.

And he’s confident in the longevity of demand for his product. The middle class across the world is growing … and they’re hungry for high-quality food and water.

Whether you’re in Latin America or on the other side of the world, food is a fundamental human need. Succeeding in the food production business lies in getting the right scale.

The right way to do it is to find a pipeline of deal flow that will allow you to leverage your due diligence into MORE deals.

In many international markets, new technology and techniques allow forward-thinking investors to create massive economies of scale … allowing both syndicators and investors to get decent returns.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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