Is your community cannabis zoned for recreational cannabis use? Many cities across the country have recently voted to make recreational cannabis illegal, and landlords are having a difficult time replacing marijuana smokers with non-pot smokers. The result of this trend is that landlords of cannabis-themed real estate are not only losing potential tenants, but may be facing potential fines as well. Property owners who are caught in these types of situations may be at risk of losing their buildings to foreclosure, evictions, or even violence. In order to remain solvent, many property management companies and landlords are now focusing their attention on real estate investing in licensed cannabis facilities.
Real estate investors looking to invest in a retail marijuana facility will be pleased to know that marijuana is completely legal under most state laws today. However, to make any real estate investing transaction successful, it is essential that you comply with state and local laws. Investing in cannabis related real estate is the perfect opportunity to do just that; investing in cannabis based real estate allows you to reap the benefits of state cannabis tax revenue while avoiding any legal trouble or financial losses. Just like investing in other types of real estate, you can choose between investing in a commercial property, apartment, storefront, mobile medical marijuana unit, and other types of cannabis related real estate properties.
When it comes to choosing between the different types of properties that fall under the cannabis industry umbrella, there are a number of things to keep in mind. First of all, if you want to legally buy, rent, sell, or lease any type of cannabis-related real estate, whether it is in a retail facility apartment, storefront, or any other location, you need to understand the laws pertaining to marijuana. This means understanding the taxes and licensing fees associated with operating a licensed cannabis business as well as understanding the local zoning regulations in your area.
Whether it is a cultivation facility or any other type of cannabis-related real estate, you will also need to determine if the property is allowed under your state’s laws. Often, the answer to this question will be found on the application for the registration of the business. Many states have early day laws that go into effect immediately after implementation. It is a good idea to check with your state’s department of revenue to confirm that the property is allowed to operate before investing your money in any type of cannabis-related real estate investment. Additionally, you may want to speak with your local law enforcement to find out if there are any restrictions or limitations placed on the actual cannabis cultivation facility as well as any other type of cannabis facilities that may be set up in your city or county.
The final consideration when it comes to investing in cannabis real estate is the possibility of regulation. Many cities, counties, and states throughout the United States have passed comprehensive marijuana laws that will severely punish anyone who is found operating a marijuana cultivation facility, selling pot, or collecting personal assets from the sale of cannabis. While each jurisdiction is different, you can conduct research on your own to determine which cities and counties will be stricter about enforcing these types of laws. While you may not need to consider this if you are planning on solely renting or owning the property, it is always a good practice to familiarize yourself with the local laws prior to investing in any type of commercial real estate.
With all of these considerations in mind, you should feel comfortable investing in real estate related to cannabis if you are careful, research the market, and understand the regulations that surround the facility. This is a wise move for any individual considering investment in property that is zoned for cannabis use. As long as you are diligent and do not invest more than you can afford, you will have nothing to worry about.