Those of you who are following my blog know that about 3 weeks ago I put out an all-points-bulletin regarding investing in farmland, specifically one of the farms we lease. The owners have decided to sell (it's been in that family for 5 generations). We've leased it for 8 years and brought it from a bramble patch to a productive grassland. We've enjoyed the transformation, including 3 hoop structures to store hay and keep pigs in the winter. Their compost adds to the soil fertility.
My initial blog simply asked: "Does anybody want to buy a farm property?" It's 134 acres, asking $750,000, no house, no electricity. About 10 of you responded but nobody had that kind of non-earmarked money sitting around. Two of you, however, had the same idea: "How about creating an LLC where we could buy shares for $5,000? Lots of people would love to invest like this but need smaller increments to do so."
So I've been to an attorney we've used here in Staunton and he says such a plan would run afoul Virginia's blue sky laws and federal securities registration laws. I'm a farmer and don't do this kind of stuff for a living. All I have are ideas and a book titled "Everything I Want to do is Illegal." Perhaps this is another case of that.
But I know some very savvy people read this bog and I'm casting this into the universe for advice. I'm not ready to visit every attorney in town to get multiple opinions, but I am glad to follow recommendations and leads and do the legwork to present the idea.
Does anyone out there think this attorney is negative unnecessarily? Where do I go from here? Thank you, and feel free to pass this along to someone who might want to weigh in on it.