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The Advanced Guide to Getting Your Commercial Grow License

Before you spend too much time thinking about your commercial grow room setup cost or how you will develop relationships with retailers who will distribute your cannabis products to consumers, you need to get a commercial grow license that lets you cultivate cannabis plants legally in your state.

Since the federal government still considers cannabis illegal, you will have to rely on guidance from state laws. Unfortunately, each state has its own rules and regulations for the cannabis industry. Getting a commercial grow license in Colorado does not follow the same process as getting a commercial grow license in Oklahoma.

Since the legal cannabis industry involves so much diversity, this advanced guide to getting your commercial grow license will focus on generalities that apply to most situations and direct you to state-specific resources that will help you stay within the law.

Since this guide focuses on commercial grow licenses, you won’t find comprehensive information about medical cannabis cultivation. If your state has legalized medical cannabis, contact the appropriate agency to apply for a medical grow license.

Cut Out the Red Tape and Buy a Cannabis License for Sale

Before getting into the weeds of state-based cannabis licensing, take a few minutes to browse the cannabis licenses for sale on 420 Property. The listings will show you licenses for cultivation and retail, but you can use the keyword filter to narrow your search.

If you don’t want to go through the hassle of applying for a license, you might find it makes more sense to purchase an existing license that will let you start your business as soon as possible.

Where to Get a Commercial Grow License in Your State

The following list will help you contact the right agency to apply for a commercial grow license in your state. Keep in mind that state laws change frequently. If you don’t see your state on this list, search the internet to learn more about getting a license there. You could discover that your state does not allow cannabis cultivation or that it just recently started accepting applications for commercial grow licenses.

Alaska

In Alaska, the Alcohol & Marijuana Control Office processes commercial grow licenses. The office’s website provides useful information that will help you complete all documents correctly and understand the cost of getting or renewing a license.

Arizona

The Arizona Department of Health Services can give you information about commercial cannabis cultivation. The department also has information about medical cannabis, so make sure you read the application process that applies to your plans.

California

California was one of the earliest states to embrace cannabis law reform. Despite its early adoption, it has complicated laws for medical dispensaries, recreational storefronts, and cultivators. You can find the information that applies to your licensing needs at the California Bureau of Cannabis Control.

Colorado

Colorado was the first state to legalize recreational cannabis. It has been at the forefront of cannabis legalization, but it also takes regulations seriously. You can learn more about getting a cultivation permit from the Colorado Cannabis website.

Illinois

Illinois recently passed recreational cannabis, so it’s still learning how to put some of its regulations in place. You can find the latest information about applying for a cultivation license on the Illinois Department of Agriculture website.

Maine

You can access cultivation and other types of permits directly from Maine’s Office of Marijuana Policy.

Massachusetts

You can get guidance for cultivation permit applications from the Cannabis Control Commission in Massachusetts.

Michigan

Reach out to the Marijuana Regulatory Agency for help applying for cultivation permits, opening storefronts, and understanding the state’s commitment to social equity within the cannabis industry.

Nevada

After years of trying to pass recreational cannabis laws, the State of Nevada finally succeeded in 2019. You can search existing licenses and learn more about applying for a commercial grow license from the Cannabis Compliance Board.

New York

New York only passed recreational cannabis laws in 2021, so it doesn’t have all of its licensing requirements in place yet. Unfortunately, the state has faced numerous setbacks. Visit the Office of Cannabis Management website to learn the latest news about the state’s progress.

Oregon

All cannabis applications get processed by the Oregon Liquor Control Commission. You can find applications and requirements on its website.

Vermont

Vermont’s Cannabis Control Board processes, approves, and rejects applications for commercial and medical grow licenses. See the board’s website for more information.

Washington

You will need to apply with the Washington State Liquor and Cannabis Board to get a commercial grow license. The website also offers regulatory guidance to help you submit a successful application.

How Much Do Commercial Grow Licenses Cost?

Obtaining a commercial grow license can cost quite a bit of money, but the price varies significantly from state to state.

In Washington, you must pay a $250 application fee and an annual license fee that costs about $1,500. Vermont charges considerably higher fees. Expect to pay an annual fee of $25,000 after your first year of production.

California has a rather complex fee system. The amount you pay depends on several factors, such as where you plan to grow your cannabis and how you expect to make money from your product. For example, a small outdoor grow operation can expect to pay $535 in annual license application fees, while a medium indoor operation will pay $8,655.

California also has diverse fees for renewing annual permits. A specialty indoor operation pays $19,540, while a medium indoor operation pays $77,905.

Considering the vast differences in commercial grow license costs, you should take extra care when filling out your application. You don’t want to waste money on an application that doesn’t accurately describe your cultivation location and methods.

The Expected Commercial Grow Room Setup Cost

Assuming that you plan to create an indoor grow room that will give you more control over your crops, you should consider how your setup costs will affect your budget. On average, commercial grow room setups tend to cost about $42 per square foot.

The type of facility and the equipment you choose can change that estimate significantly, though. Converting a warehouse into a grow room might not cost as much as building a greenhouse. Your irrigation, nutritional, lighting, pest control, and other systems will also influence how much your grow room setup costs.

Higher setup costs aren’t always a negative thing for commercial growers. If you want to care for 500 plants, you might find you can accomplish much of the labor manually. If you want to care for 5,000 plants, though, it potentially makes more sense for you to spend more money on an automated system that can measure moisture and soil pH to optimize growth.

Other Expenses to Expect Before Getting Your Commercial Grow License

Getting into the recreational cannabis industry isn’t a cheap endeavor. Spending money on the right products and services, however, can help ensure your success. You don’t want to lose thousands of dollars on permit fees and real estate because you didn’t want to spend money on helpful services and products.

You can use 420 Property to find trustworthy professionals with the experience you need to build a successful cultivation business. Some of the professionals you should talk to include:

  • Business consultants who can review your business plan and offer advice for improvement.
  • Accountants and CPAs who can help manage your money.
  • Architects and designers who can make the most of your indoor cultivation space.
  • Environmental experts who can recommend soil supplements to improve crop growth and health.
  • Appraisers who can help ensure you pay a reasonable price for your cultivation real estate.
  • Insurers who will make sure you have all of the policies needed to protect yourself, business partners, and company from liability.

If you do not have enough capital to fund your cultivation startup, 420 Property can help connect you with private lenders that work within the cannabis and hemp industry. Unfortunately, banks must follow federal laws, so they will not work with cannabis cultivators even when they operate in legal states.

Considering how quickly the recreational cannabis industry has grown over the last decade, it often makes sense for entrepreneurs to start their commercial grow operations as soon as possible. Otherwise, you could miss opportunities as states limit permits and other companies gain prominence with retail stores and customers.

Get a Commercial Grow License on 420 Property

Obviously, it can take a lot of work to get your commercial grow license. Save yourself the trouble by browsing the cannabis licenses for sale on 420 Property. Instead of filling out mountains of paperwork, you can buy an existing license directly from the current owner. As more states legalize commercial cannabis, permits will become available on 420 Property.

July 7, 2021Comments Off
What Are the Types of Greenhouses for Cannabis Growing Operations?

If you plan to start a cannabis grow operation, you probably want to learn about the various types of greenhouses available. It’s not always an easy question to answer. What are the types of greenhouses? They often vary by size, shape, and material.

Some greenhouses have high ceilings that make them look like buildings. Others have low ceilings that make them look like extremely wide tents.

The following article will help you answer “what are the types of greenhouses?” for commercial cannabis growing operations. After a discussion of greenhouse options, you will learn about some of the systems and equipment that can make your cannabis grow operation even more successful.

Things to Consider Before You Start Exploring Greenhouses

Before you spend a lot of time comparing types of greenhouses, ask some questions that will help you choose the right greenhouse structure and material for your grow operations.

Some of the most important questions include:

  • Do you plan to grow your cannabis plants in the ground, pots, flats, beds, or hydroponic troughs?
  • What type of growing media do you plan to use, such as soil, compost, nutrient solutions, or soilless mixes?
  • Do you want to grow cannabis during specific seasons or throughout the year?
  • What is your annual production goal?
  • How much investment capital do you have to spend on your cannabis greenhouse?

You may not know the answer to every question just yet. That’s okay. Schedule a meeting with an environmental services professional to talk about how your approach to cultivation will influence your decision. You may find, for example, that it makes more sense for you to grow potted plants in high-quality dirt and nutritional supplements. Then again, a hydroponic system might help you reach your goals more easily.

You can also schedule a meeting with an architect or designer to talk about the structures, materials, systems, and amount of space you need for your business plan to reach its goals.

The Basic Types of Commercial Greenhouse Structures

Hypothetically, you can hire a greenhouse company to build practically any shape or size. A small number of options, however, have stood the test of time. While you might want to explore customizations, you will probably want to choose one of the following basic types of commercial greenhouses.

Quonset (Hoop) Greenhouses

You have almost certainly seen this type of greenhouse before. Many people have miniature versions in their backyards and on hobby farms.

With a Quonset — or hoop — greenhouse, you get a long, fairly narrow structure. Hoop greenhouses have arched structures because they rely on bent poles for support. More often than not, you can expect to cover the hoops with a plastic film that captures sunlight and retains heat.

Venlo Greenhouses

Venlo greenhouses offer excellent flexibility to meet the needs of cannabis in a variety of regions. Many cultivators choose Venlow greenhouses because they cover large areas, which means they can accommodate more plants.

Rooftop ventilation attracts a lot of cannabis entrepreneurs to this style of greenhouse. Some designs have air vents built into the roofs. You can adjust the vents to control how much air flows into your cultivation area. Controlling the air ventilation helps you maintain an appropriate temperature for your cannabis strains.

Other versions of Venlo greenhouses let you open the roof completely, which comes in handy on sunny days with near-perfect outdoor temperatures. 

Greenhouse designers and builders usually let you customize your Venlo so you:

  • Save money by harvesting sunlight and airflow.
  • Can choose between glass, film, and polycarbonate cladding.
  • Improve growing factors in hot regions.
  • Get a greenhouse that’s correctly sized for the number of plants you want to grow.

Talk to a greenhouse architect or designer to get the specific features that will improve your crop yield and health while helping you control overhead costs.

Gutter-Connected Greenhouses

Gutter-connected greenhouses look more like a row of transparent townhouses. They have triangular ceilings that collect water. When it rains, the water runs down the roofs into gutters that supply the greenhouse with the moisture necessary to grow healthy plants.

Gutter-connected greenhouses do not usually have curved designs like hoop greenhouses. They’re much more rigid. Because of this, you can expect to cover the greenhouse in panels. The panels provide similar services as transparent plastic — they collect sunlight and heat.

The Pros and Cons of Different Greenhouse Structures and Materials

All types of greenhouses have pros and cons. However, one will likely match your cultivation and propagation needs better than others.

Hoop Greenhouses Pros and Cons

Cannabis growers who choose hoop greenhouses usually want to grow plants directly in the ground, although some prefer to grow plants in pots and flats.

Pros of Hoop Greenhouses

  • Hoop greenhouses usually have affordable prices because they do not rely on expensive materials and are relatively easy to install.
  • Farmers can erect them to extend their growing seasons while exposing plants to natural sunlight and wind during the optimal growing time.
  • You can move a hoop greenhouse if you decide to relocate to a new farm.
  • Temperature control often involves little more than turning on fans or heaters that blow air through the tunnel.

Cons of Hoop Greenhouses

  • The plastic used to cover hoop greenhouses can get damaged rather easily by strong storms, so you might find yourself repairing or replacing parts every few years.
  • The hoop structure can minimize the amount of room you have on the sides of your greenhouse, which can feel like a waste of cultivation space.
  • Plastic coverings don’t offer as much protection from animals, pests, and disease as greenhouse panels (although they certainly work better than nothing!).

Gutter-Connected Greenhouses Pros and Cons

If you have visited recent cannabis greenhouses, you have probably seen gutter-connected designs that look like large, semi-transparent buildings. Large cannabis companies tend to prefer gutter-connected greenhouses, especially when they operate in urban or suburban green zones.

Pros of Gutter-Connected Greenhouses

  • The panels you choose for your greenhouse can capture specific light spectrums to improve cannabis growth.
  • The panels tend to last longer than plastic coverings, although an intense hail storm could damage them enough that they need replacement.
  • The gutters capture water, which you can potentially use on your crops.
  • You gain more control over the interior environment, but you will have to invest in systems for temperature, humidity, and other factors.
  • Gutter-connected greenhouses provide increased security and better protection from pests that want to nibble your plants.

Cons of Gutter-Connected Greenhouses

  • You will pay more for the design, materials, and construction of a gutter-connected greenhouse.
  • Gutter-connected greenhouses are stationary, so don’t expect to move them.
  • Panels don’t break often, but they cost a lot to replace when it happens.

Features and Systems You Should Look for When Comparing Cannabis Greenhouses

Whether you choose a hoop greenhouse or a gutter-connected greenhouse, the option will probably work well for your adult cannabis plants. As long as the plants get enough water and light, they will grow. 

You will, however, probably need more than water and sunlight to take your cannabis from a seed to a product consumers want to buy. That’s why you need to look for other features and systems when choosing a greenhouse.

You might not find all of the below features necessary for your cannabis greenhouse. Still, you should know about their benefits. Whether you decide to use them is up to you.

Germination Rooms

You can germinate your cannabis seeds inside your greenhouse. You will get better results, though, by germinating seeds in a controlled environment. A germination room or chamber should have the heating and fog system you need to get every seed started right. By controlling all of the variables, you should see faster germination times and healthier seedlings that will eventually grow wonderful flowers.

Supplemental Lighting

A greenhouse can only do its job well when your area has abundant sunlight. What happens when you experience a prolonged period of cloudiness or storms? Even a few days of cloudy weather could stunt your plants’ growth and throw off your schedule.

Supplemental lighting ensures that you always have the appropriate amount of light to keep your plants on track. You don’t need nearly as many lights as someone with a warehouse grow operation, but you should — at the very least — have some LED lights for days when the sun can’t energize your cannabis plants.

Irrigation

Obviously, your plants need water to thrive. Too much water, however, is just as deadly as too little water. A drip irrigation system should deliver the appropriate amount of moisture to your cannabis plants. In most cases, that’s a third of a gallon per square foot per day. Factors like temperature and soil can affect how much water your crops need, though, so make sure you check your system frequently for optimum delivery.

Water Purification

The quality of your greenhouse’s water can also affect your crops. Hire a professional to test your location’s water before you start your grow operation. Have them pay particular attention to pH levels, suspended sediments, hardness, electrical conductivity, and dissolved solids.

All water supplies contain some impurities, so you need to take this seriously if you harvest and use rainwater. Municipal water supplies can also contain chemicals that have adverse effects on plant growth. You wouldn’t mind using your municipal water to grow tomatoes in your backyard, but you might not want to rely on it to water your cannabis crops.

If the test reveals any concerns, invest in a water purification system that will help deliver clean water to your plants. 

Fertilization

All plants need nutrients to grow and flower. Current research shows that cannabis plants likely benefit from soil — or hydroponic water sources — rich in the macronutrients phosphorus, nitrogen, and potassium. 

Studies also show that some micronutrients might also improve cannabis health and flowering. Critical micronutrients include calcium, magnesium, and sulfur. 

When exploring fertilizers, look for options that include these nutrients. While there isn’t definitive research showing the benefits of boron, copper, iron, chlorine, zinc, molybdenum, and manganese, anecdotal evidence encourages using them.

When in doubt, talk to a horticulturist who specializes in cannabis plants.

Heating

During some parts of the year, your greenhouse may become too chilly to grow cannabis. Install a heating system to control the temperature. Most experts recommend hot water heating systems that provide ambient heat throughout the greenhouse. Heaters that radiate heat from a specific point may not heat the entire greenhouse. They could also burn plants near their heat sources.

Cooling

Excessive heat can stunt cannabis growth, so greenhouses in many areas should have cooling systems installed. Often, this just means installing fans that can circulate the air and maintain an even temperature throughout the interior. Many experts recommend horizontal airflow systems that circulate air from the floor to the ceiling.

Shelterbelts

High winds outside the greenhouse can affect the greenhouse’s interior environment. Areas that might experience high winds should use shelterbelts that slow the air’s movement. 

Storage

Your grow operation will need storage space that serves a variety of tasks, including storing chemicals and equipment, curing cannabis flowers, and separating dangerous items from agricultural items. 

Storage often exists as a building separate from the greenhouse. This makes sense because it typically costs less money to construct one or more small buildings than to add storage space to a greenhouse. Ideally, every square foot of your greenhouse should serve a role in cannabis production.

Office Areas

You need a place to conduct business and store records, such as your license to cultivate cannabis. Again, you do not want to waste space inside your greenhouse for office areas. You can either construct a separate building or use the same building where you store equipment.

Parking

A decently sized parking lot might not sound like an important part of your greenhouse. Just wait until you need to accept numerous shipments of soil, fertilizer, and equipment on the same day. 

Build your greenhouse in a location that lets you add a parking lot where you can load and unload items easily. You also need to provide a place for your employees to park. 

Outdoor Production Areas

Keeping in line with the idea that you should devote greenhouse space to growing cannabis, it makes sense to build outdoor production areas where employees can trim, package, weigh, and label cannabis products before shipping them to retailers.

Why Would You Choose a Greenhouse Over a Farm or Warehouse Growing Operation?

A greenhouse lets you extend your growing season, but you can do the same with a warehouse-based indoor grow operation. Why would a cannabis cultivator choose a greenhouse over a farm or warehouse operation?

Cannabis Greenhouse vs. Cannabis Farms

In some cases, cannabis greenhouses exist alongside cannabis farms. A greenhouse, however, has some advantages that you don’t get from farmland. Some of the reasons businesses choose greenhouses over standard farmland include:

  • Extended growing seasons that let them germinate seeds earlier and keep growing plants later — depending on your location, a greenhouse may even let you grow cannabis throughout the year.
  • More control over the growing environment. Standard farming works well for most crops, but you wouldn’t take the same risk when growing cannabis as you would when growing soybeans or corn. A greenhouse gives you more control over your growing environment’s temperature, humidity, moisture, lighting, and soil to help ensure a healthy crop.
  • Better security. You can erect a heavy-duty fence around a farm, but that will cost a lot of money and you still won’t keep out all the pests that want to eat your crops. You might not even keep out the deer. A greenhouse gives you greater security from harm done by insects, animals, and criminals.

If you still prefer farmland over a greenhouse, 420 Property can help you explore your options. Browse listings that offer details of land for sale and land for lease.

Cannabis Greenhouse vs. Warehouse Grow Operations

You can potentially save a lot of money by choosing a greenhouse over a warehouse grow operation. A greenhouse lets your plants get nutrients and energy directly from the sun. You might need to spend money on irrigation, but sunlight doesn’t cost anything.

In a warehouse, you need to supply every aspect of your plant’s needs, including water, nutrients, and artificial sunlight. You can easily spend $1,000 on commercial lighting for just a few plants. Then, you have to pay for the energy it takes to run the commercial lighting. The costs add up quickly.

If the costs were equal, most people would prefer warehouse grow operations since warehouses provide greater control and security. A warehouse costs so much more, though, that it often makes sense for businesses to build greenhouses.

If you are interested in setting up a warehouse grow operation, 420 Property can help you explore warehouse space for sale and warehouse space for lease.

How Much Should You Expect to Spend on a Commercial Greenhouse?

Given how many decisions you can make before having someone build your greenhouse, it’s not surprising that costs vary considerably. The amount of money you spend relies heavily on things like:

  • What type of greenhouse you prefer for growing your cannabis
  • Whether you purchase or lease land for your cannabis greenhouse
  • The location of the land you buy or lease
  • The types of systems you install for watering and feeding plants (manual systems cost much less than automated systems, but they also require much more work on your part)
  • The size of your greenhouse
  • Whether you plan to hire a horticulturist and other professionals to manage your plants

While it’s impossible to say how much you will spend, most experts say that cannabis entrepreneurs should expect to spend $40 to $50 per square foot on a greenhouse.

Explore Various Types of Cannabis Greenhouses for Sale on 420 Property

July 6, 2021Comments Off
The Pros and Cons of Buying a Cannabis Greenhouse

A crop of high-quality cannabis can sell on the legal market for millions of dollars. Many 420 entrepreneurs want to protect their crops from sudden changes in weather and hungry insects, so they turn to cannabis greenhouses. With the right cannabis greenhouse, you can cultivate an excellent crop of trending strains while protecting your plants from the outdoors.

Consider the pros and cons of buying a cannabis greenhouse before you commit to this option. There are obvious perks, but there are some downsides too. Knowing about the advantages and disadvantages will help you make an informed decision that benefits your cannabis business.

Pro: A Cannabis Greenhouse Can Extend Your Growing Season

If you grow cannabis on an outdoor farm, you have a limited growing season determined by your geographic area. During the early stages of growth, cannabis enjoys temperatures between 68 and 77 degrees F. Once your plants start flowering, you need temperatures between 65 and 85 degrees F. Most strains prefer it on the warmer side while they flower.

Outdoor cultivation doesn’t give you any control over temperature. You have some control over moisture and pest maintenance, but you can’t do anything about the temperature. That limits your growing season.

By moving your plants into a greenhouse, you extend your growing season by gaining more control over the temperature. During early spring, you can add heat to your greenhouse to grow young plants. By the time you near summer, you already have healthy cannabis plants ready to start producing flowers.

If it gets very hot in your area, you can protect your plants from excessive heat by cooling the greenhouse. A few fans kept at the greenhouse’s entrance and exit can create a breeze that encourages the plants to grow large, impressive flowers that dispensaries will want to purchase from you.

As the season starts to turn cold again, you can use the sun’s energy to produce an extra crop of cannabis. Some cultivators install heaters that let them continue growing throughout winter.

Con: Cannabis Greenhouses Can Add to Your Expenses

Cannabis entrepreneurs in the United States already face numerous challenges when trying to fund their businesses. Many states welcome new cannabis cultivators. The federal government, however, has not adjusted its laws to make cannabis legal. Since banks and credit unions must follow federal laws, they usually decline applications from cannabis companies.

The situation becomes difficult when you want to purchase a cannabis greenhouse instead of basic farmland for cultivation. First, you have to pay the extra expense of a greenhouse that’s large enough for you to grow crops. Second, you have to pay for additional utilities — such as gas and electricity — that help you control the growing environment.

It certainly helps that some private lenders understand the challenges you face. At 420 Property, you can find commercial cannabis and hemp real estate financiers willing to help fund your cannabis greenhouse.

Despite help from private lenders, it still costs more money to buy a greenhouse than farmland. Many business owners find the additional expense intimidating even though they understand that a greenhouse can help them generate more revenue over time.

Cannabis Greenhouse Tip: Explore the cannabis greenhouse listings on 420 Property to find an option that fits your business plan and capital.

Pro: Some Cannabis Strains Seem to Thrive in Greenhouses

Not all cannabis strains prefer the same growing environment. While some love the fresh air of the outdoors, others prefer the controlled environment of a greenhouse.

If you want to grow popular strains with high retail values, it makes sense for you to invest in a cannabis greenhouse. You might find that the greenhouse pays for itself over a few growing seasons.

Some of the best strains to grow in a greenhouse include:

  • Northern Lights
  • Jack Flash
  • Tahoe OG

These strains show tremendous resistance to mold, so they often grow well in moist, indoor environments. They can also tolerate mild changes in temperature, so you can grow them in small greenhouses without expensive equipment. Of course, it always helps to add equipment that improves irrigation, soil nutrients, light exposure, and other factors that influence growth.

Con: A Cannabis Greenhouse Doesn’t Offer as Much Control as Warehouse Cultivation

Cannabis greenhouse systems give you more control than growing cannabis outdoors. You do not, however, get nearly as much control over your cultivation environment as growers who choose warehouse cultivation.

A cannabis greenhouse can extend your growing season, but you still rely on the sun as your primary source of light and warmth. A cloudy growing season could mean you get small flowers that don’t command high prices. Warehouse cultivation gives you complete control over your plants’ environment.

Explore cannabis warehouse listings to decide whether you want to pursue this option.

Keep in mind that warehouse cultivation also comes with pros and cons. While you gain complete control over the growing environment, you also have to invest a lot of money in cannabis growing systems. When you remove the sun and rain from your growing operation, you have to pay for lighting and irrigation systems. You can also expect your utilities to cost quite a bit more than cultivators growing in greenhouses.

Pro: Cannabis Greenhouses Help Protect Plants From Pests

All kinds of insects and other creatures enjoy munching on cannabis plants. Some of the most troublesome pests include:

  • Spider mites
  • Black flies
  • Aphids
  • Inchworms
  • Caterpillars

Plenty of cannabis farmers also have horror stories of deer and other mammals destroying their crops. When animals get hungry, many of them don’t mind turning to cannabis. They might even get a psychoactive boost that keeps them coming back for more.

A cannabis greenhouse does not create an impenetrable wall that prevents all pests from harming your plants. It can, however, give you more control over the growing environment.

Perhaps some spider mites sneak into your greenhouse. Outdoors, you would have to spray your plants with insecticides to kill the pests. Those chemicals might save your crops, but they can significantly lower the value of your products, especially when you focus on consumers who prefer organic flowers.

Inside a greenhouse, you can manually remove spider mites and other pests without resorting to harmful chemicals. It takes a lot of work, but you can maintain the value of your plants by doing the job by hand.

Similarly — and much more easily — you can introduce beneficial insects that will control the pest population inside your greenhouse. Praying mantises and ladybugs, for example, will eat a lot of pests before they reproduce and become a major problem for your business.

Con: Cannabis Greenhouse Repairs Can Get Expensive

A cannabis greenhouse helps cultivators control their interior growing environments. What happens outside, however, is up to Mother Nature. Unfortunately, that can mean damage from weather events like windstorms and hail.

Repairing a cannabis greenhouse can get expensive. Of course, the amount of money required for repairs depends on the greenhouse materials and the type of damage that occurs. Fixing a rip in plastic lining probably won’t cost very much. Replacing a large greenhouse panel, however, could cost thousands of dollars.

Anyone getting into the cannabis cultivation industry should prepare for unexpected expenses. They might not happen this year, but they will happen eventually.

Greenhouse cannabis cultivators can protect themselves from unexpected expenses by purchasing insurance policies that pay to replace necessary systems and ensure the value of crops.

When learning more about cannabis business insurance, look into options such as:

  • Crop coverage — you could get up to $10 million in coverage for living plants.
  • General liability that pays for the care of anyone injured on the property.
  • Landlord coverage for cannabis greenhouse owners who rent their space to cultivators.
  • Equipment breakdown that will cover lost revenues when important equipment breaks.
  • Workers’ compensation that pays employees when they get injured on the job.
  • Product liability that protects you from the legal costs of defending your products.
  • Directors and officers liability that covers the legal expenses of executives.

Cannabis business insurance can cover practically any type of operation or event you can imagine. With the right level of protection, cultivators don’t need to worry about the high cost of repairing greenhouses and the systems that produce healthy plants.

Pro: Cultivators Can Choose Cannabis Greenhouses That Match Their Needs

A commercial cannabis greenhouse doesn’t look anything like the greenhouse your neighbor uses to grow vegetables. After all, you’re not growing for personal use. You want to start a business that serves thousands of consumers.

Commercial cannabis greenhouses come in a variety of sizes to meet your business’s unique needs. Popular structures include:

  • Freestanding greenhouses that you can erect practically anywhere.
  • Wide-span greenhouses that create a large, indoor area with a controlled environment.
  • Curved glass greenhouses that capture more sunlight throughout the day.
  • Low-profile greenhouses that don’t use as much energy to heat or cool.
  • Greenhouse lean-tos that can make an excellent addition to an existing warehouse grow operation.
  • Cold frames that extend the growing season at minimal cost.
  • High tunnel crop protectors that let your cannabis plants grow naturally while shielding them from extreme weather.

Obviously, you have a lot of options to explore. 420 Property makes the process easier by letting you review cannabis greenhouses and other green zone properties for sale. You can filter your results by area, listing type, or keyword. If you already know what type of greenhouse your business needs, you can quickly find the perfect solution. If you want to explore designs, you can use 420 Property to compare diverse structures on one website.

Con: You Need Land for Your Cannabis Greenhouse

When you buy a cannabis greenhouse, you might also need to purchase the land that it sits on. Even if you can buy a cannabis greenhouse and its related systems without buying a specific plot of land, you still need space for your greenhouse.

If you plan to purchase a greenhouse that isn’t already connected to a piece of land, you should take some time to explore green zone real estate for sale. You might also find that you can keep your expenses lower by leasing green zone land.

Pro: Investing Now Could Maximize Future Profits

The cost of green zone real estate will likely increase as the legal cannabis industry grows. Already, more states in the U.S. are exploring laws that would let more patients and adults access the products they desire. Investing in the right land, greenhouse, and grow systems now could give you a head start. While other businesses scramble to catch up with evolving laws, you will have a business model and cannabis greenhouse in place to start making money.

Find the Right Cannabis Greenhouse on 420 Property

Are you ready to start comparing available cannabis greenhouses? Search cannabis greenhouses for sale and cannabis greenhouses for lease on 420 Property.

July 3, 2021Comments Off
How Equipment Leasing Works in the Cannabis Industry

The cost of equipment can make it much more challenging for entrepreneurs and investors to enter the cannabis industry. Equipment leasing, however, offers a more affordable option. With help from an equipment leasing and financing association, you can start growing cannabis and creating consumer products immediately without paying the high price of upfront ownership.

If “sticker shock” has prevented you from accessing equipment commonly used in the cannabis industry, equipment leasing companies could have offers that help you generate income quickly without spending a lot of money now.

What Types of Equipment Does the Cannabis Industry Use?

The type of equipment that you might lease or finance depends on how you want to make money in the cannabis industry. Some popular types of equipment leasing options include:

  • Irrigation systems that ensure your plants receive the optimum amount of water throughout their growing cycle.
  • Lighting that helps your plants grow quickly and healthy by putting you in control (this equipment is essential for indoor farms and grow operations).
  • Solar panels that generate electricity so you can power your warehouse or storefront without paying the hefty price of public utilities (and also letting you advertise your commitment to the green economy).
  • Packaging machines that help you create labels and packages that protect your products and follow your area’s regulations.
  • Extractors that can remove specific chemical compounds (such as THC, CBD, and terpenes) from cannabis and hemp, making it possible for you to create and sell a wider range of products, including edibles, tinctures, and oils.
  • Ventilation systems that improve air quality.
  • Dehumidifiers that pull moisture from the air to prevent fungi and other problems that can harm plants.
  • Greenhouses and grow tents that can extend your growing season.
  • Security camera systems that protect your property, cannabis plants, equipment, and other assets.

As you can see, some types of equipment leasing could apply to practically anyone in the cannabis industry while others are only interesting to people who rely on indoor cultivation and making consumer products.

The Cannabis Industry Relies on Private Equipment Leasing Companies

Most small businesses that wanted to borrow money would go to a bank or credit union to apply for a loan. Unfortunately, very few financial institutions will work with businesses in the cannabis industry. Despite growing legality at the state level, the federal government still considers cannabis and many cannabis products illegal. Banks and credit unions worry that financing cannabis businesses could get them in trouble with federal authorities. Understandably, they don’t want to take the risk.

Private leasing companies, however, don’t need to worry about following federal laws nearly as much as banks and credit unions do. Instead, they can extend private loans directly to you and other small businesses. This gives you an equipment leasing financing option that didn’t exist years ago.

How Much Does Equipment Leasing Cost?

The cost of cannabis equipment leasing and financing depends on many factors, including:

  • The type of equipment you want to lease.
  • Whether you want to lease new or used equipment.
  • Whether you prefer lease-to-own agreements.
  • Your credit history and credit score.
  • The amount of collateral you have to offset the risk of leasing expensive equipment to your business.

Typically, you can expect to fund your equipment through loans with interest rates between 6.99 percent and 19.99 percent. You will need a minimum 550 FICO score. You do not necessarily need to put any money down on the equipment since you can finance up to 100 percent of the lease or purchase through a private lender.

Many equipment leasing companies in the cannabis industry prefer to work with businesses that want to access at least $100,000 worth of equipment. If you have an exceptional credit score, however, you could qualify for $25 million or more in funding. The overall amount and the price you pay ultimately depends on you and what you want for your business.

Can Equipment Leasing Pay for Itself?

Many small businesses in the cannabis industry find that equipment leasing pays for itself as long as they can market their products profitably. Of course, there are no guarantees in a competitive marketplace. Leasing, however, makes it much easier for companies to explore new opportunities in the industry.

Lease equipment for your cannabis now by reaching out to qualified financing companies. While 420property does not provide leasing of funding, the website does help cannabis and hemp businesses connect with financiers that can offer affordable leasing agreements. Explore your options to find equipment leasing and financing that helps your business improve its harvest size or start making products that appeal to cannabis consumers.

June 23, 2021Comments Off
What Is Crop Insurance and How Your Cannabis Business Can Benefit

If you plan to make money by cultivating cannabis or hemp, you need to protect yourself from loss by getting a reliable cannabis crop insurance policy. Unfortunately, not all crop insurance agents sell policies to cultivators in the hemp and cannabis industries. The good news is that 420 Property can help you find a crop insurance agency that welcomes your business.

What Is Crop Insurance?

A crop insurance agency can sell policies that cover various situations. For example, you might buy a crop insurance policy that pays you a specific amount when an unexpected weather event destroys your crops. That might include:

  • Tornadoes
  • Droughts
  • Floods
  • Fires

A policy could also protect you from financial loss when insects destroy your crops. You might be surprised to learn that a lot of insects eat hemp and cannabis plants. Your crop could get ruined or harmed by:

  • Stink bugs
  • Cutworms
  • Budworms
  • Aphids
  • Fungus gnats
  • Corn-borers
  • Crickets

Yes, even crickets want to feast on your plants! Typically, you probably don’t need to worry that your area will have enough insects to cause significant damage. But you never know when a hungry crowd of bugs will show up at your farm. Such events have destroyed farms and even caused regional famines.

You can also find crop insurance agents with policies that ensure you earn a minimum amount of money from your hemp or cannabis plants. A drought might not kill your plants, but it could significantly reduce the size of your harvest or the quality of your flowers. In that case, crop insurance would step in to fill the gap between the money you make and the minimum amount promised by your policy.

Similarly, what would you do if the price of hemp fell between planting and harvesting? Perhaps so many people have gotten into the industry that the product loses value. Maybe someone developed a low-cost way to create CBD in laboratories. Regardless of the reason, the lower price would not destroy your business because crop insurance would ensure you get paid a certain amount.

Why Your Hemp or Cannabis Business Would Need Crop Insurance

Think about how much money you plan to invest in your hemp or cannabis business. Could you survive an entire year or longer without the revenue you expect? Forget about whether you will make a profit. Crop destruction could mean that you don’t generate any revenue. Suddenly, you can’t even afford to make your monthly loan payments, let alone expand your business as planned.

You might think that you don’t need to worry about crop insurance because you cultivate cannabis indoors. Problems can devastate indoor grow operations, too. If insects find their way into your warehouse, they could multiply over the weekend while you’re away. When you come back on Monday, you discover that they have eaten half of your plants.

Unexpected issues with your growing equipment could also hurt the amount of revenue you generate from your indoor cultivation. What happens if your grow lights or automated irrigation system malfunction? Within a matter of hours, your lights could get so hot that they burn your plants. Your irrigation could flood all of your small plants. They might recover somewhat. That doesn’t mean they will meet their full potential.

Don’t think of crop insurance companies as unnecessary expenses. Think of them as hedges against risk. Instead of jeopardizing all of your investment money, you get a chance to secure a minimum payment that keeps you afloat and able to operate next season.

Compare Policies From Crop Insurance Companies

Just because you need crop insurance jobs doesn’t mean that you should accept a bad offer. Just like any type of insurance, you have plenty of options to consider. Policies can vary quite a bit by:

  • How much they cost.
  • What types of events they protect you from.
  • How much they will pay you for lost revenue.

You must compare policies from several crop insurance companies to make sure you get one that fits your budget and goals.

Compare Crop Insurance Companies, Too

Don’t assume that two policies that say the same thing will give you the same level of coverage. Just like with other types of insurance, some companies offer better customer service. You want to find a crop insurance agent that will follow through with guarantees quickly instead of making you jump through hoops.

You might have experienced bad customer service from health or vehicle insurance companies. Dealing with an uncooperative insurance provider is a nightmare when you just want to focus on solving a problem that could ruin your business. You could lose millions of dollars from one year of poor crop performance. You don’t need the stress of arguing with an insurance company on top of the stress of worrying about your investment.

Protect Your Investment With Help From a Crop Insurance Agent

Everyone involved in horticulture needs crop insurance that protects their investments. It doesn’t matter whether you grow heirloom tomatoes or purple haze cannabis. If you rely on income from your crop, you need crop insurance.

The difference between your farm and other farms is that you invest in an extremely high-value crop. Each of your plants might generate hundreds or thousands of dollars in revenue. Very few farmers can say the same. An acre of damaged cannabis is an expensive loss that could ruin your future investment plans. Don’t put yourself in that position. A reliable crop insurance agency can make sure you avoid such devastating loss.

Get a quote from a crop insurance agency today so you can start comparing your options. Ideally, you want an affordable policy that gives you as much protection as possible. You can’t run an indoor or outdoor farm without one.

June 19, 2021Comments Off
Cannabis Real Estate Investment Trusts (REIT)

A real estate investment trust (REIT) is a company that owns – and often operates – one or more properties that generate income. Cannabis real estate investment trusts are a sub-type of REITs that focus on the properties that businesses in the cannabis and hemp industry need.

Cannabis real estate investment trusts come with several benefits that help make them profitable. Before anyone gets invests in a cannabis REIT, it makes sense to learn about the options, opportunities, and competitors.

Types of Cannabis Real Estate Investment Trusts

Like other REITs, cannabis real estate investment trusts typically fall into three categories:

  • Equity
  • Mortgage
  • Hybrid

Equity Cannabis REIT

Most REITs operate as equity REITs, providing investors with the opportunity to invest in portfolios of income-producing real estate. With an cannabis equity REIT, one or more investors own property, such as farmland, storefronts, and warehouses. They have a few ways to make money from these options.

Mortgage Cannabis REIT

Mortgage cannabis REITs act more like lenders than property owners. When someone invests in a mortgage cannabis REIT, they profit when their company lends money to business operators to purchase real estate.

Hybrid Cannabis REIT

A cannabis REIT doesn’t have to fit into one of the above categories. A hybrid cannabis REIT makes money from owning property and from lending money to businesses that don’t want to lease property. That way, the investor can profit even when someone uses property their REIT doesn’t own.

Opportunities for Cannabis REITs

REITs have some shared benefits, no matter what sector the company focuses on. One of the biggest advantages is that several investors can combine their money to purchase real estate. Individually, these people might not have enough capital to buy the property. Together, they can buy that real estate without borrowing money.

Borrowing and lending money has always been challenging in the legal cannabis industry. State-level regulations put a lot of pressure on cannabis and hemp businesses. Regardless, the federal government still sees cannabis as an illegal product. Until the federal government changes its laws, most financial institutions will avoid the legal cannabis industry. That means business owners need to find alternatives to traditional banks and credit unions.

Cannabis REITs Can Fill the Lending Gap

Since cannabis entrepreneurs cannot rely on typical financial institutions to fund their ideas, cannabis REITs have an opportunity to fill the lending gap. When someone wants to borrow money to lease a dispensary, a cannabis REIT can step in to provide the capital. If the cannabis REIT owns the property, it and the business owner can find creative ways to reach their financial goals without involving federal law more than necessary.

Cannabis REITs Control a Large Portion of the Market

Cannabis businesses – whether they grow plants, manufacture products, or sell to consumers – can only operate in “green zones.” Operating in a state with cannabis-friendly laws does not mean businesses can open anywhere they want. They have to get licensed and follow a lot of regulations.

In some cases, communities and cities only let cannabis and hemp companies operate within specific areas.

Since the investors involved in cannabis REITs pool their money, they can purchase a lot of property in green zones. In fact, they could purchase so much property that they practically control a green zone’s retail spaces. (This doesn’t happen as often with farmland and warehouses because there is so much property left to buy.)

When a cannabis REIT controls much of the legal cannabis real estate, dispensaries must work with them before they can sell products to consumers.

Today’s Top Cannabis REITs

Several cannabis REITs have already invested significant amounts of money in green zone properties. Some of the biggest cannabis REITs operating today include:

  • AFC Gamma
  • Freehold Properties, Inc
  • GreenAcreage Real Estate Corp
  • Inception REIT
  • NewLake Capital Partners
  • Power REIT
  • Treehouse Real Estate Investment Trust

Most of these companies are privately owned. Some are publicly traded. Power REIT, for example, is a publicly traded company with shares available on the New York Stock Exchange. Anyone with enough money can purchase a share in public companies. Investing in a public cannabis REIT, however, often takes more research, money, and relationships.

Find a Cannabis Real Estate on 420 Property

420 Property can help you explore a wide range of cannabis real estate and business investment opportunities. Start your search for cannabis real estate for sale and cannabis businesses for sale on 420Property.com.

June 18, 2021Comments Off
Qualify for Real Estate Loans in 5 Simple Steps

Unless you have access to millions of dollars in cash, you will almost certainly need real estate loans for businesses before you start your cannabis company. That applies when you want to use real estate business loans to buy farmland, warehouse space for indoor cultivation, or retail space where you can provide a comfortable experience for patients and customers.

Qualifying for affordable commercial real estate loan rates doesn’t happen for everyone. If you struggle to find real estate loans for investors that leave you with enough room to generate profits, you might need to take these five simple steps to qualify for better real estate loans.

1. Check Your Credit History for Mistakes

Most Americans think that they can rely on credit bureaus to provide accurate information about their credit histories. Despite that, about 20 percent of Americans have mistakes on their credit histories. It’s an incredibly common problem that can prevent you from accessing real estate loans for businesses.

Before you apply for a loan, get a free copy of your credit report and scour it for incorrect information.

Federal law requires each of the three major credit bureaus – TransUnion, Equifax, and Experian – to give you a free credit report each year upon request. That means you can get three free copies per year.

Do yourself a favor and check your credit report from each company. They can record different information. One report might show that you have a perfect credit history. Another could show that you have a history of missed payments.

If you find inaccurate information, get the items removed by contacting the company that reported it. If that doesn’t work, reach out to the credit bureau to start an investigation. It can take months to complete, so start well before you plan to apply for a loan.

2. Work Toward Improving Your Credit Rating

Your FICO score provides a snapshot of your credit health. Most financial institutions and private lenders use the number to determine how much risk they assume when lending you money. The higher your score is, the less risky you seem.

You will want a Very Good (740 to 799) or Exceptional (800+) FICO score to qualify for real estate loans that have low interest rates.

You might get real estate loans for businesses with a lower score, but you will pay a much higher interest rate, which makes it harder for your cannabis business to generate profits.

3. Save Money so You Can Offer a Larger Down Payment

Many lenders will require a down payment before approving real estate loans for investors. The typical bank, for example, wants a 20 percent down payment. If you cannot pay 20 percent of the property’s cost, then you can expect to pay extra for private mortgage insurance that protects the lender from loss.

As someone who wants to borrow money to purchase cannabis real estate, you cannot turn to a bank or credit union for help. As long as cannabis remains illegal at the federal level, most financial institutions will not risk upsetting the government by working with cannabis cultivators and dispensaries.

Private lenders, however, also use down payments to lower risk and ensure that you take the arrangement seriously. They might offer to loan you 100 percent of the cost, but you will pay a higher interest rate.

Save money until you can provide a larger down payment that lowers the overall amount of cash you borrow and helps you lock in a lower interest rate.

4. Use Your Existing Assets as Collateral

People who invest in real estate loans want to make sure you can make your monthly repayments on time. No matter how attractive your application looks, though, you still represent some risk since there’s always a chance that your business will not succeed.

Put the lender’s mind at ease by using your existing assets as collateral. If you own a home, you can list the property as collateral for the loan. You could also list vehicles, business stock, equipment, and other types of property.

Keep in mind that collateral will increase the chances that you get a low-interest loan, but it could also mean that you lose property when you fail to repay the loan. You have some protections, but you could lose your home when you list it as collateral on a business loan you cannot repay.

5. Compare Real Estate Loan Options to Find a Lower Rate

Real estate loans are just like any other commodity. Some companies charge higher (or lower) prices than others. It pays to shop around before you accept any real estate business loans. With lower commercial real estate loan rates, you could save hundreds of thousands of dollars over the next several years.

Let’s say you get a $1 million loan with a 10-year term and charges a 15 percent interest rate. Each month, you will repay the lender $16,133. At the end of 10 years, you will have spent more than $936,000 on interest!

Now, imagine that you get the same loan at 7 percent interest. Your monthly payments drop to $11,611. More importantly, your overall interest falls to $393,302. You save over half a million dollars by finding a loan that charges a lower interest rate.

Every interest point matters when you borrow money. Even a 1 percent difference can cost you more than $50,000.

While you should always take time to compare your real estate loan offers to make sure you save as much as possible, you also need to choose a reputable lender. If a company has a reputation for bad customer service, you might want to avoid them even if it means spending a little more money going with a different option.

Find Real Estate Loan Opportunities on 420Loans.com

Apply now to receive real estate loan offers for cannabis properties. 420 Loans can connect you with financing for your cannabis or hemp industry business.

June 17, 2021Comments Off
8 Golden Tips for Investing in Hemp Real Estate

Investing in hemp real estate has become a phenomenal way for entrepreneurs to build wealth. A 2020 survey finds that about 33 percent of Americans have used CBD. They cite stress, anxiety, pain, and inflammation as reasons they take CBD supplements, lotions, and other products.

CBD’s growing popularity, however, does not ensure success in the industry. Follow these 8 golden tips for investing in hemp real estate to make smart choices and maximize your ROI.

Know How Much an Acre of Hemp Is Worth

How much an acre of hemp is worth depends on several factors. An acre that already has an irrigation system probably has a higher value than one that relies on rain for watering crops. Access to a major highway can also affect how much an acre of hemp is worth. After all, it takes time and money to move plants from the farm to the production facility. The shorter the distance, the more you can make from your crop.

Other qualities that can affect land value include:

  • Soil acidity.
  • How previous owners used the land.
  • Whether you already have a permit to farm hemp on the land.
  • Existing infrastructure for water, electricity, and other utilities.

If you have questions about the value of farmland, it never hurts to ask a professional appraiser to look at the property and give you an estimate.

Compare Regional Prices to Get a Good Deal on Hemp Real Estate

How much does an acre of land typically cost in the area? Reviewing regional land prices can help you determine whether you’re getting a good deal on your hemp real estate investment.

Work With an Experience Hemp Real Estate Agent

Even if you’ve purchased agricultural land before, you might not know how to find the best hemp real estate for your investment dollars. Growing hemp isn’t the same as growing other crops, largely because you have to deal with state and federal regulations that can affect how you operate and how much money you earn.

Working with an experienced hemp real estate agent helps ensure that you make informed decisions that lead to higher returns.

Identify all of the Ways You Can Make Money From Hemp

Obviously, you can use your hemp real estate investment to enter the CBD market. Before you decide to purchase or lease property, though, you should identify as many ways as possible to make money from hemp.

For example, you can sell your hemp to a company that makes CBD products. You can also purchase extraction equipment to start making your own CBD products. Is that an additional investment you’re willing to make? And will it lead to increased profits?

Other ways hemp real estate owners can make money include:

  • Leasing land to farmers who want to take advantage of your hemp growing permit.
  • Carefully trim flowers from the hemp plants to sell as CBD buds.
  • Extracting CBD and other chemical compounds from hemp leaves.
  • Selling stalks and other plant materials to companies that make products like cloth and paper.

Hemp isn’t just about CBD production. Use the whole plant to maximize your returns. Can you build a house out of hemp? Believe it or not, some companies use hemp fibers to make a material called “hempcrete.” It’s considered an eco-friendly way to construct houses and other buildings.

Estimate the Overall Cost of Ownership

It’s pretty easy to determine how much hemp real estate will cost to buy. You just negotiate a price with the current owner and add any applicable taxes and fees.

That doesn’t give you the total cost of ownership, though. Consider that you will probably have to:

  • Pay annual property taxes.
  • Add to the existing infrastructure.
  • Amend the soil to improve crop yield.
  • Renew your hemp growing permit.
  • Pay utility bills.
  • Hire employees.
  • Purchase seeds, equipment, and other essentials.

Determining the total cost is an ordeal, but you can make the process easier by hiring a business consultant who has been through the steps many times before.

Get Crop Insurance to Protect Yourself From Losses

Imagine that one day you look out over your acres of profitable hemp, growing easily in the sun after a gentle rain. The next morning, you wake up to learn that a terrible storm has destroyed area crops. Unfortunately, your farm got hit hard. You lost at least half of your hemp crop.

That’s a sad moment for anyone. All of that hard work gone to waste! You will feel much less upset, though, if you have crop insurance that protects you from financial losses.

Most farmers have crop insurance. Unfortunately, the government makes it a little harder for hemp and cannabis farmers—even though Congress legalized hemp in the Farm Bill. Private crop insurance providers have policies that can protect your hemp real estate investment.

Compare Funding Options to Lower Costs

It’s not always easy to get funding for 420 investment opportunities. You can find funding offers through 420 properties, though.

Always compare your funding options to make sure you spend as little as possible. Few people have enough money to purchase large plots of land without help. That doesn’t mean your loan’s percentage rate should eliminate your profits!

Explore loans and other funding opportunities so you can purchase hemp real estate that will grow healthy crops and earn you significant returns on your investment.

Consider the Benefits of Selling Your Hemp Real Estate Investment

What is an acre of hemp worth? They might have paid significantly less when you bought hemp real estate a few years ago. Today, you could potentially double or triple your money by putting your land up for sale.

Contact us today to get your hemp property listed and attract serious buyers willing to pay for the true value of your land.

June 12, 2021Comments Off
Everything You Need to Know About Finding & Investing in Cannabis Real Estate

The legal cannabis industry has had a tremendous effect on residential and commercial real estate properties. According to research from the National Association of Realtors (NAR), many residents living in states with cannabis properties say that the housing market has been tighter—likely because of the growing industry.

The same report shows that hemp and CBD real estate needs have influenced demand. Some examples of changes associated with cannabis legalization include:

  • 23 percent increased demand in storefronts.
  • 18 percent increased demand in farmland.
  • 36 percent increased demand in warehouses.

It’s impossible to say that the increased demand comes exclusively from medical and recreational cannabis legalization, but there’s a strong connection that industry experts have noticed.

Clearly, there’s a lot of money to make by investing in cannabis real estate. Like any investment, though, you need to make informed decisions to reap significant returns. The following guide cannot ensure that you find and invest in the perfect cannabis real estate, but it can certainly point you in the right direction.

Know the Different Types of Hemp and Cannabis Real Estate

Cannabis and hemp real estate has several categories that you should consider before determining which option fits your investment goals and local laws. Some popular real estate categories include:

  • Retail storefronts for CBD
  • Retail storefronts for recreational cannabis products
  • Dispensary real estate for medical marijuana products
  • Farmland for growing cannabis
  • Farmland for growing hemp
  • Residential real estate for growing hemp
  • Residential real estate for growing cannabis
  • Warehouse space for storing hemp and cannabis products
  • Warehouse spaces for indoor cultivation
  • Industrial space for making hemp or cannabis concentrates and other products

Learn Your State and Local Laws

As of mid-2021, 17 states and Washington, D.C. have recreational cannabis laws that let adults over 21 years old purchase cannabis products from licensed dispensaries or retail stores. Many other states have medical cannabis laws that let patients purchase medicine with prescriptions from their doctors.

The Farm Bill makes CBD legal in all 50 states, but products cannot contain more than 0.03 percent THC, which makes edibles, tinctures, and other products non-psychoactive.

It’s critical to note that every state has its own laws regulating the cultivation and sale of hemp and cannabis. Some states let adults grow a small number of cannabis plants on their personal property. Other states forbid personal cultivation.

Even in states with fairly permissive cultivation and sales regulations, rules can change from community to community. You might find it easy to get cannabis properties in West Hollywood licensed. Growing or selling cannabis in a more conservative area, however, could create many more challenges.

Whether you want to invest in 420 properties in California, Oregon, Colorado, or elsewhere, you must know how local laws will affect your investment. It’s never a bad idea to consult a cannabis business or real estate lawyer before you invest.

Your Cannabis Real Estate Will Require a Permit or License

No matter what type of cannabis or hemp properties interest you, you will need to get a permit or license before you can begin operations. Again, permit and licensing requirements can vary greatly from area to area.

Don’t assume that you can purchase CBD real estate and start growing hemp just because the Farm Bill made CBD products legal. States still require permits before you can grow hemp plants. Hemp and marijuana look extremely similar. In many ways, they’re the same plant. They do, however, contain different levels of chemicals like THC and CBD. States want to make sure that hemp farms follow regulations and do not try to make extra money by growing THC-rich cannabis.

Limited Permits

States, counties, and municipalities often have a limited number of permits for cultivating and selling cannabis products. If you cannot get a permit, it doesn’t make sense to purchase CBD properties and real estate for sale in that area. You have no idea how long you will have to wait before you can receive a permit that lets you start growing or selling.

You might think that 420 properties in California make it easy to cultivate cannabis. That isn’t always the case. Your opportunities might depend on how many permits the area has.

Buying Permits on the Secondary Market

Limited licenses and permits don’t necessarily mean that you cannot start reaping returns on your investment. Even if an area has already given all of its licenses to cultivators and storefronts, you could buy one on the secondary market.

Securing Funding for Hemp and Cannabis Real Estate

More and more states recognize that they need tax revenues from legal cannabis and hemp sales. The federal government, however, still considers cannabis an illegal drug. There is very little chance that the Department of Justice would ever target a cultivator or dispensary operating within a state’s legal framework. Conflict between federal and state laws, however, can make it difficult for investors to secure funding when they want to buy, lease, or rent real estate.

When most people want to purchase real estate, they go to banks or mortgage brokers to borrow money. Since most banks operate across state lines, they tend to worry about following federal laws as closely as possible. This makes them nervous about funding businesses in the cannabis industry. Many even feel uncomfortable lending money to buy hemp properties.

Instead of wasting time with banks that will probably turn down your application, turn to private lenders that don’t need to think as much about following every aspect of federal banking laws. Don’t give up on your investment opportunity until you research funding options through 420property. While 420property does not function as a lender, it does have connections to lenders that might want to help you fund a cannabis real estate purchase.

Make sure you follow these steps before applying for a cannabis business loan. An accurate credit record and high credit rating will make it easier for you to secure funding at an affordable interest rate.

Concentrates, Edibles, and Other Cannabis Products Offer More Investing Options

Edibles have become increasingly popular among people who want to consume CBD and THC discreetly. Edibles—including tinctures, oils, and gummies—also provide a smoke-free way to consume THC and CBD. Health-conscious consumers who enjoy using THC and CBD might shy away from smoking. Edible options make them feel better about enjoying cannabis products.

Commercial and industrial cannabis real estate often makes a good investment opportunity for people who want to get into the edibles market. In addition to purchasing or leasing 420 properties, though, investors need to access extractors that can remove chemicals from raw plant materials efficiently.

Iron Fist Extractors stand out as one of the best options because the company designs and manufactures all of its equipment in the United States. You can also get a customized system designed for the type of extraction that interests you.

If you want to invest in extraction, explore your options to find a cannabis supplier, equipment manufacturer, and warehouse space you can use to reach your goals.

Find a Cannabis Real Estate Broker in Your Area of Interest

Cannabis real estate can a successful investment can take a lot of experience and exploration. Purchasing a plot of land does not ensure that you can grow cannabis successfully. You need to know that cannabis and CBD properties for sale have fertile soil, irrigation systems, greenhouses, storage facilities, and other features that will help you reach your goals.

Unless you have significant experience in hemp and cannabis cultivation, it makes sense to use a cannabis real estate broker who can help you identify the best properties.

Finding and investing in cannabis real estate doesn’t mean that you have to purchase land or buildings in your area. It’s possible to invest in real estate in other states, too. You might discover excellent opportunities hundreds of miles from where you live. You can take advantage of those opportunities when you rely on an experienced, trustworthy cannabis real estate broker to find a property that fits your needs.

When you find cannabis real estate that interests you, 420property will help you locate a cannabis real estate broker in that area. You might want to visit the property before finalizing your purchase. Outside of occasional visits, though, the investment property can largely function without your involvement. That way, you make money from real estate without spending much time or expending much effort. You let your investment generate profits for you.

Explore Cannabis Investments With 420 Property

Want to learn more about investing in hemp and cannabis real estate? Search for cannabis real estate listings to find a property that meets your budget and business interests. Take some time to explore your options and learn about the advantages of investing in certain areas. The more you know about cannabis real estate investing, the more likely it is that you will reap significant returns on your money.

June 10, 2021Comments Off
7 Reasons You Need Cannabis Business Consultants to Grow Your Company

Now that you have a clearer idea of what cannabis business consultants do, you can start learning about some of the most important reasons you need them to succeed.

1. Vet Applicants to Hire the Best Executives and Managers

Owning a company doesn’t always mean you have the experience and skills to hire the best executives and managers. A cannabis business consultant can review applicants objectively to determine which ones can do the jobs best.

Eventually, your consultant will leave. The executives and managers will stay behind. Make sure you have professionals who can do their jobs well.

2. Use the Consultant’s Existing Connections in the Cannabis Industry

If you’re starting a new cannabis company – or expanding your existing company into new areas of the industry – you might need a cannabis business consultant’s connections to grow.

Imagine that you have developed a new strain that your test group loves. It tastes amazing and creates an energetic high without any anxiety. Right now, it’s sitting in your warehouse. You need to get it into dispensaries that can sell to consumers willing to pay for high-quality products.

The question is: Do you know which storefronts in your state are willing to sell your new strain?

An experienced business consultant can point you in the right direction. A truly hands-on consultant might even do a lot of the work to get your product on shelves.

It’s much more likely that a company will want to distribute your products when its owner has a personal connection to you. A business consultant can act as that connection.

3. Abide by All Regulations to Avoid Penalties

A business consultant’s services often include reviewing company guidelines to make sure they align with industry regulations. That matters more in the cannabis industry than most.

Even states with relatively permissive recreational cannabis laws enforce strict rules on businesses. For example, you might not have the option to advertise in certain places, or you might need to ensure the presence of security during your hours of operation.

To make matters even more complicated, regulations vary from state to state. They can even vary from community to community. Business consultants in Florida might not know how to answer questions about regulations in Oregon. Similarly, professionals in Oregon might not have the information needed to help Florida cannabis businesses grow without breaking laws unintentionally.

Avoid penalties by following recommendations from experienced consultants who understand your area’s laws.

4. Overcome Growing Pains That Hold Back Many Businesses

Most businesses experience growing pains when owners try to expand. Opening a new storefront, for example, requires more than paying for more real estate and staff members. The growing business also needs to make sure that it has enough merchandise to keep shelves stocked. If you expand too rapidly, you could find that you do not have enough suppliers to satisfy patients and customers. Suddenly, you find that you’ve spent a lot of money opening a store that can only operate for a few hours a day before it runs out of merchandise.

Other common growing pains experienced by expanding businesses include:

  • Changes in tax requirements.
  • Determining whether you need to give employees more benefits to match state and federal regulations.
  • The increased costs of distributing products to multiple locations.
  • Streamlining supply chains to keep costs low without experiencing interruptions.

Unless you’re prepared to tackle these issues on your own, you need a business consultant who has helped other companies overcome these issues.

5. Determine the Best Ways to Spend Money on Your Business

Your business has a set amount of money that you can spend on growth. What’s the most effective way to use your cash and credit? Should you spend money on marketing the products you have or open a new location to reach more customers? Does it make more sense for you to start manufacturing your own edibles and concentrates, or should you dedicate that money to securing merchandise from other companies?

You have a lot of questions to answer. A cannabis business consultant can review your financial situation, research growth opportunities, and synthesize the information to help you make a smart choice.

6. Identify Emerging Opportunities in the Cannabis Industry

The cannabis industry evolves quickly. More states seem to loosen their laws every year. As areas start to allow more medical and recreational cannabis, you could expand your business and attract more patients or customers.

Emerging opportunities can also include spending money on new products. Do you have a customer base willing to spend 10 percent more on high-quality strains promoted by celebrities? Perhaps that’s an area you should pay attention to. Your business consultant can help you figure out the right path to growth.

7. Avoid Common Mistakes That Ruin Businesses

A good business consultant will help you avoid some of the common mistakes that ruin many businesses. Some of those mistakes might include:

  • Taking on more debt than you can repay.
  • Growing too fast for you to maintain quality.
  • Hiring employees who won’t commit to doing excellent work.
  • Putting people in leadership positions without teaching them how to lead.
  • Setting up an employment package that does not attract the best candidates.
  • Choosing outdated technology because it’s cheaper – even though it will eventually hurt your business by slowing operations.
  • Following a flawed business plan.
  • Refusing to adjust to the industry as it evolves.

A cannabis consultant’s services probably can’t solve all of your problems, but they can make growth much easier by helping you avoid common pitfalls.

Choosing a Cannabis Business Consultant

Now that you know the seven reasons why cannabis business consultants are essential for growth, you need to know how to identify the right professional for your company. The following tips should lead you to a reliable person.

Tip 1: Find a Cannabis Business Consultant With Experience Working in Your Area

As mentioned above, the cannabis business has diverse laws that can vary from community to community. Unfortunately, it doesn’t look like that will change soon. Unless Congress acts to legalize cannabis products, states will continue dealing with this hodgepodge of regulations. At the moment, Congress doesn’t even recognize cannabis as a medical treatment despite ample evidence showing that it can curb symptoms of depression, anxiety, ADHD, Alzheimer’s disease, and many other conditions.

Because of this unfortunate situation, you should choose a cannabis business consultant with experience working in your geographic area. If you operate in Florida, find a cannabis business consultant in Florida. If you have a store or farm in Michigan, find a consultant based in Florida.

Don’t take any chances by hiring someone who might not understand the nuances of your local laws.

Tip 2: Know What Areas of Help You Need for Your Business

Since many business consultants focus on specific issues in business development, you should start your search by identifying what areas of help your company needs. If you aren’t sure what areas apply to your plans, talk to a general business consultant to get a clearer idea of what you can expect.

Tip 3: Always Ask Cannabis Business Consultants About Their Qualifications

Does a cannabis business consultant really have the experience you need to grow your company? Before you hire someone, ask consultants about their educational degrees, real-world experience, and other companies they have helped.

Tip 4: Get References Before You Hire a Consultant

Ask business consultants to give you references so you can contact other companies that have worked with them. Reach out to those businesses in the cannabis industry to talk about their experiences. If they were happy with the consultant, there is a good chance that you will also have a positive experience. If they have a lot of complaints, it’s probably safest to choose someone else.

Tip 5: Choose a Cannabis Business Consultant Willing to Focus on Your Company’s Needs

Business consultants should never put their needs first. The client’s business matters more than anything else. If you get the impression that a cannabis business consultant near you cares more about enriching themselves, keep interviewing people until you find someone you trust.

Tip 6: Follow Your Instincts but Use Your Brain

Hiring an excellent business consultant isn’t always a straightforward decision. Someone can look perfect on paper. Despite that, you get a bad feeling about them. The opposite can also happen: Someone you click with might not have the experience you prefer.

Remember that this decision will have a direct impact on the growth of your business. Making the wrong decision could hurt your profits substantially. You want to hire a cannabis business consultant that appeals to your instinctual gut and your analytical brain.

Tip 7: Always Get a Contract Before You Use a Business Consultant’s Services

You’ve found someone you think can help your cannabis business grow. Congratulations! Now, take the time to have a lawyer write a contract that defines everyone’s expectations in the relationship. The contract could include:

  • Bonuses for reaching milestones.
  • The number of hours the consultant will work for you each week.
  • A timeline for meeting goals.
  • How much money the consultant gets paid.
  • How you can protect your business from consultants that don’t commit to your needs.

Talk to a Cannabis Business Consultant

Find a cannabis consultant today by searching the the listings on 420property. The website does not provide business consultant services, but it can help you find a reliable consultant for your cannabis business.

June 9, 2021Comments Off
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