I want to get into marijuana

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I want to get into marijuana

Rousner E.
Investor · Millington, TN · Member since 2016 · 45 posts · 40 votes
Good evening, I have been looking around at pieces of land in West Tennessee but I am now thinking I should expand into any of the 50 states. I want to buy a parcel of land and lease it out to a company to grow pot/weed. Marijuana has been legalized in a few states and from the looks of it, it appears that 2018 will be a big year for marijuana as it is being considered as ballot items in multiple states. I am looking to see if anyone has any tips or if there is anyone who has done this before I would love to get on the phone or video chat with you. Thank you
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Chris Carson
Real Estate Agent · Jacksonville, FL · Member since 2015 · 102 posts · 65 votes
8y
Based on my knowledge of the industry it makes more sense to grow indoors on a large scale. Variables that impact production (lighting, co2, pests) are more easily controlled in an indoor environment. Security is also a concern given the value of the crop. Might make sense to look for a large industrial space versus a bunch of acreage out in the country. I've never done anything along those lines but I have some good friends who are involved in the industry. If you are serious about this I can put you in touch with someone who can answer specifics better than I can. Edit: Remember that marijuana is still illegal under federal law and state laws vary widely. Make sure to consult a local attorney prior to starting down that path.
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  • Glenn Banks
    Design | Build · Milwaukee, WI · Member since 2014 · 107 posts · 35 votes
    8y
    Rousner Ermonfils Vegas ?
    0Reply
  • Account Closed
    Tuscaloosa, AL · Member since 2017 · 27 posts · 17 votes
    8y
    I've contemplated this a lot as well.
    0Reply
  • Dustin Frank
    Real Estate Agent · KS · Member since 2017 · 157 posts · 71 votes
    8y
    There are banking institutions now that ONLY deal with marijuana funds. Heck...credit card companies have figured out how to make it happen.
    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y
    I have a feeling it could be quite a while before this is federally legal or legal in Tennessee...
    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
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  • B. Eugene Johnson
    Columbus, OH · Member since 2012 · 6 posts · 1 vote
    8y
    I'd like to talk to you more about the land you need. I'm in Ohio and we just legalized it so this is a fresh slate state!
    0Reply
  • Kenneth Anderson
    North Las Vegas, NV · Member since 2016 · 50 posts · 16 votes
    8y
    Rousner Ermonfils that is a great idea. Several cities will be recreational come 2018.
    0Reply
  • Account Closed
    Realtor · Detroit, MI · Member since 2015 · 211 posts · 104 votes
    8y
    Rousner Ermonfils Michigan is the #2 state with the largest amount of medical marijuana patients. Lots of opportunities, now is the time. I have the details.
    0Reply
  • Richard AndersonPro Member
    Professional · Batavia, IL · Member since 2016 · 107 posts · 39 votes
    8y

    @Matt R. That is good to hear the city is realizing the issue with banking and is pursuing a solution. It will be interesting to see how it plays out regarding depository protection. I wonder if the state insurers or FDIC will certify and protect the deposits of those who bank there. It is a complicated matter which of course would benefit from national decriminalization/legalization. Haha, everyone call your legislators!

    0Reply
  • Joshua Howaniec
    Contractor · Indianapolis, IN · Member since 2016 · 267 posts · 144 votes
    8y
    "Your listening to Bigger Potheads Radio. Simplifying controlled substance abuse for investors large and small. If you're here to learn about drugging up the nation, without all the high, you're in the right place. Stay tuned and be sure to join the millions of junkies you have benefited from Bigger Potheads.com. You're home for controlled substance abuse, online. " So glad I'm a member of the Bigger Pockets Podcast and not the above. ;)
    2Reply
  • Josh Collins
    Investor · Woodbury, MN · Member since 2016 · 90 posts · 72 votes
    8y

    I would say it seems like you are putting the cart before the horse.  You are speculating that mj will be legal in your state and then you are speculating that the land you purchased will be allowed to be used for growing mj.  That seems ultra risky unless you just want to get into agricultural land to bank some cash and get farming lease rent (which is approximately $125-175/acre in Minnesota).  The good news is that property taxes on farm land is typically pretty minimal so your land lease should pretty easily cover that.  However, I don't see you making much long-term wealth on 2 acres of land.  Granted, I'm guessing you won't have a huge outlay of cash for the 2 acres so it's not a huge risk.  However, you're much more likely to swing and miss with picking your land for mj if you don't know where the approved grow areas will be once mj is legalized in your area.  Not to mention, if you buy in TownX, there is no guarantee that TownX will even allow it in their city, further making it difficult to hit on your speculation.  I like the idea (maybe not inline with your plans) of buying farmland slowly and steadily on the outskirts of cities (in the path of progress, as they say) and speculating that way.  You can park some money, make a little income from land leases to farmers and possibly sell to a developer or maybe get lucky with the ability to use it for mj farming.  Otherwise, if you can find some farmland that has future commercial zoning, you could put up a mini-storage and make rent immediately (with some investment, of course) while you wait for laws to change.  You can even get an SBA loan for a mini-storage.  I'm guessing you'll want to figure out a way to buy out the SBA loan before converting your mini-storage into a grow house (the feds are likely not going to be happy that you're using their small biz funds for mj).  

    I live in MN and own storage facilities in WI (which doesn't have a very good chance at legalizing mj, by the way) and I figure that this might be a possible exit strategy someday.  I'm not banking on that, but if it gets legalized, I'm guessing there may be a scramble for covered square footage.  

    So that's a couple ideas for making the strategy of buy and holding farmland that make a bit more investing sense (in my opinion) than buy and hope.  

    Lastly, a great series on this subject that was on Netflix a while back was called: "High Profits".  It's based on a medical-turned-recreational dispensary in Breckenridge, CO.  They actually got kicked out of town even though they had a great location that they had leased before recreation mj became legal.  So you never know what kind of pressure TownX will put on you.  

    1Reply
  • Heather Hearsey
    Real Estate Agent · Seattle, WA · Member since 2016 · 34 posts · 5 votes
    8y

    This may have been said already, I didn't read every response... Even in Washington, where it is legal to grow your own in small amounts, I know that people have been denied re-fi's if there was even a single plant in the house. Also, if you have any damages that you need reimbursed from your insurance, will likely be declined if they think anyone was growing, even if it wasn't the source of the problem (gives them a way out of paying). 

    There are a number of start-ups in Washington that though quite popular just didn't have enough $ to pay for all the expenses involved and ended up going under. If you are the owner of the property with others doing the growing you have to be sure that they pay you regularly or you will evict them, often you will be the last to get paid as they need to pay for utilities ($10k+ mo.) and the cost of labor and supplies to keep the operation going and making $.

    I've heard that store owners and production companies do much better financially (in Washington you can't grow and sell or make edibles, there are 3 different licenses) they have less overhead and less risk of issues with the crops to contend with.

    Good luck!

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