Cannabis Entrepreneur?


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  • If legal in your state, are you planning to incorporate cannabis in to your real estate investing?

    In Colorado, where it is legal, some landlords still forbid it in their rental homes. Some allow it.

    Some AirBnB’s say no some say yes to cannabis

    There are some Bed and Breakfast places which allow cannabis but others forbid it.

    I have talked to some investors in Colorado who are buying houses or warehouses subject-to then renting them out as grow houses – getting 3-4 times more rent.

    What do you think?

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    The best term to describe the various aspects of any cannabis-related business is “the Wild West” because of the many conflicts between what’s legal and what’s practical, what a given state has declared legal versus the federal legal hostility of laws, banking service deprivation, and captive regulatory agencies in bed with the mega-industries that see any cannabis operations as a competitive threat that must be squashed at all costs, or at least until some of those industries can figure out a way to carve out their own monopolies. Here’s who those players are:

    https://web.archive.org/web/20170419080813/http://accmag.com/the-top-five-special-interest-groups-lobbying-to-keep-marijuana-illegal-are-police-unions-private-prisons-alcohol-and-beer-companies-pharmaceutical-corporations-prison-guard-unions/

    It’s not all the easy businesses like the CannaBus (Magic?) rides in California

    Seniors board ‘cannabus’ for trip to medical marijuana dispensary

    which haul loads of seniors to the medical cannabis dispensaries. Because the federales lean on the banking system to deny banking services to the cannabis industry, that industry has to deal in cash, a lot of it, which has to be physically transported. That opens up new avenues of theft, from the classic masked bandits to law enforcement playing the “civil asset forfeiture” racket, where the victims never have to be charged with, or convicted of, any crime.

    http://www.blacklistednews.com/The_Feds_Just_Expanded_Civil_Asset_Forfeiture_%27Laws%27_Nationwide/59828/0/38/38/Y/M.html

    There are stories coming out of Colorado especially about this.

    At the same time, there is one huge marijuana company that just bought an entire near-ghost town in California to convert it to support their business:

    http://www.businessinsider.com/american-green-nipton-california-marijuana-town-2017-8

    I recently saw a national survey that reported 86% of the US population supports legalizing medical cannabis.

    So I’m thinking that any business either on some far edge, or smack in the middle, of the cannabis industry has to come up to speed on a new body of knowledge — what’s legal at the state and local level, what’s tolerated or threatened from the federal level, what the risks of dealing in cash might be, and the civil asset forfeiture risks to one’s property might be, what the churning changes of laws, rules, and practices will be, and one’s tolerance for such chaos.

    Now I realize there is a considerable difference between being in the production and distribution end of any cannabis business and merely being a landlord who permits the use of cannabis (recreational or medical) on the property. But such a landlord must stay current on the laws, rules, local/state/federal practices, and relevant local experience that could affect that rental business. Would local hotels, which despise the competition from Airbnb operations, rat out such a landlord to federal law enforcement as a possible civil asset forfeiture target? I’m thinking — in a heartbeat….

    –Dee

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    Here’s a good link (which I didn’t have handy last night) from the NY Post on the hazards of having to cope with generating so much cash on a daily basis on the distribution end of the cannabis business:

    http://nypost.com/2017/08/03/paying-taxes-is-the-most-dangerous-part-of-selling-legal-weed/

    Another weird possibility in that business are a few stories lately about Jeff Bezos making noises about using Amazon to apply the same takeover tactics to the retail side of pharmaceutical distribution that’s driven so many brick & mortar retail stores into the ground. How far that strategy might go, and how or whether that might change the cannabis retailing business is very much still up in the air.

    –Dee

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