Legal changes federally and state-wide have allowed cannabis and hemp growers to come out of the shadows and grow their businesses in more traditional ways. Hemp has become totally legit, with the government recognizing it as just another legal crop. Cannabis has gained full and limited legality in a number of states, and growers have good reason to believe it might become legal on the federal level in the next decade. These changes have a number of ramifications, with specialized real estate businesses being one of the most important. If you want to grow or sell cannabis or hemp, you can find the properties that you need on multiple listing services (MLS)
, just as other mainstream businesses do.
Before the late 1800s, real estate brokers
listed and sold properties for their own clients. This practice naturally limited the amount of business that they could do. Toward the end of the century, brokers began getting together and sharing information on their listings, promising other brokers compensation if they found a buyer. This new era of cooperation led to more sales and a better income for everyone involved. Now there are more than 800 multiple listing services that help realtors, buyers and sellers efficiently and profitably move real estate.
In recent years, the real estate industry has seen the development of cannabis MLS
‘s and hemp MLS
s, which lets those interested in growing pot or hemp find suitable and legal properties for their efforts. Interested parties no longer have to go underground to make their real estate transactions, and there is no need to hide their crops, at least in a number of states. As long as everyone involved has the proper licenses, the deals go through just as any commercial property transaction would.
Growth of Cannabis and Hemp Industries
The amount of legal cannabis
sold in the United States has grown considerably in recent years and is expected to continue its expansion. In 2017, the legal pot industry in the US was $9 billion. Experts predicted that the number would grow to $11 billion in 2018 and $21 billion in 2021. This expanding industry also means jobs for many, with over 100,000 employed by marijuana businesses in 2017. That number is expected to more than double by 2021.
The US government is benefiting from this burgeoning business by collecting billions in taxes from legitimate growers and sellers. In the past, that money was all underground and the government saw nothing of it. In fact, they spent untold amounts trying to find and destroy these crops.
Hemp production was already on the rise after years of being depressed. Now that it’s been made legal through federal law, the business is set to quickly expand in the next few years. Hemp production in 2017 had risen to $820
million and is expected to triple in 2018 to approximately $1 billion. If hemp proves as profitable as some hope, a number of farmers may look to it as a replacement for crops such as soybeans, which are falling in value due to current tariffs.
Cannabis Multiple Listing Services
Since the business is booming, real estate experts
are trying harder to fulfill the specific needs of cannabis and hemp businesses. The laws governing cannabis vary greatly state by state, so those in the industry need brokers who are specialists in this area to navigate local and state regulations. Sellers may also place restrictions on sales, eliminating those in the cannabis industry as buyers.
In response to this demand, some traditional MLSs have a specialist or perhaps two working with cannabis and hemp clients. Of course, that number is not enough, particularly in states such as California where recreational marijuana was recently legalized.
A better solution has been the creation of cannabis MLS
such as 420 Property
. This website touts itself as the largest cannabis marketplace and offers a huge number of listings for cannabis and hemp-friendly properties. It also helps connect users to others in the industry while selling insurance and offering financing options. A number of similar services are also doing business, which means that growers and sellers have a better chance of finding the properties they need at competitive prices. They also receive help navigating the legal issues involved with setting up their businesses.
Since hemp has recently been legalized, farmers should not have much difficulty in finding properties to grow it. The biggest challenge will be for farmers to adjust to this new crop and work it into their current crop rotation.
The cannabis and hemp industries are headed for even greater success in the coming decade and will continue to attract more people to the business. As a result, finding the right real estate for their endeavors becomes more important. Fortunately, specialized cannabis and hemp MLS
s such as 420 Property
fill that real estate niche and make it much easier for individuals and companies to find the land or buildings that they need. The cannabis and hemp boom is real and should continue for years to come. As a result, growers and sellers will find more help from the mainstream business community.