All Forum Posts by: Richard Anderson

It's interesting these threads around crop cultivation/land leasing keep popping up. One of the practical issues anyone involved in the marijuana industry faces is banking. The vast majority of banks do not want any exposure to the potential legal risks involved and actively pursue the termination of any accounts related to marijuana. It does not matter if pot is "legal" in a state as several people have pointed out in this thread it is still illegal federally. Most banks have federal regulators or are in a correspondent banking relationship with nationally chartered banks. They will not risk the legal ramifications of banking anyone involved in the industry. And of course if anyone attempts to mask the origin of their funds, especially cash, they are headed down the road of violating BSA/AML regulations.

@MJ Barnett In addition to the items that @Account Closed pointed out, your client may have a significant challenge in banking the proceeds from the parcel rental. Banks are stuck between a rock and a hard place when it comes to providing services to the cannabis industry. 

I don't think anyone can say definitively it is a good time or bad time because it depends on the market you are looking to invest in. And even in some markets it depends on the area. My wife and I are working on putting together deals in Indianapolis. Some areas in Indy are so hot they have become overpriced. Yet other areas there are absolute bargains to be found. You have to know your market. Ultimately it is about the deal. Either way, plan your work, and then work your plan.

Hi @Account Closed this is actually a good question. Without being able to perform a pretty comprehensive audit on your lender, you would not be able to know. And it's actually a good opportunity for someone to launder. Especially if they are involved in multiple deals and perhaps using profits to purchase properties for cash to further cleanse the funds. Treasury, and therefore FinCEN, have issued geographically based filing requirements related to cash purchases. But those are in specific markets and for large dollar amounts.

@Deanna Anderson

@John Woodman any time you show up with cash a bank is going to want to know where it is coming from. If you have a definitive trail of where the cash comes from it will aid in reducing red flags for laundering.

I'm looking forward to meeting some new investors!

Associates in Economics

BA double major in Finance, and Econ

MS International Commerce and Policy

JD focused in transactional law, and estate planning

All of that expensive education taught me to invest in educating oneself and to find others who have blazed a path beforehand...which if you listen to a ton of BP podcasts you should be able to figure out for yourself. Of course the law, finance, and econ degrees help in other ways.

Great seeing everyone last night!

Hi, there are conventional lenders that will allow you to borrow under you own name, but title in a trust, or LLC. Or better yet, if they are available in your state, title in a Land Trust. Good luck!