Medical Marijuana Real Estate Facilities
KCTV had this report on medical marijuana real estate facilities, “A warehouse is no longer abandoned as it is now a construction process and Jack Mitchell sees the potential, although indoor grow operations are involved.”
Mitchell runs a company that’s filed several applications for marijuana cultivation and dispensary facilities. One state requirement requires access to a building where a cannabis operation could operate. “We’re hoping to get a license, and we’re going to take some risk,” Mitchell said.
One risk is the preparations. Mitchell is already preparing the building even though his application for a grow license hasn’t been approved yet. “We’re going to go ahead and keep planning, engineering plans, construction plans,” Mitchell said. His lease is contingent on his license.
“It was a tsunami of real estate offers,” Sheryl Vickers, a local realtor said. Vickers is a realtor who’s handled several transactions in the past few weeks of businesses scrambling to find locations for a cannabis operation.
“There was a lot of investment that was nonrefundable for these potential licensees,” Vickers said. “There are places in Kansas City that haven’t been used in years, so it’s a good price for something.”
“We’re aware of some well-financed groups that took the risk and bought real estate they’ll have to dispose of or find another use for or something,” Mitchell said.
The state has received more than 2,100 applications but will only approve 348. Mitchell plans to minimize his risk by re-purposing his warehouse if the license doesn’t pan out, maybe for hemp production, but until December, he’s cautiously optimistic.
“I’d say there’s a lot of nervous people out there,” Mitchell said.
Medical Marijuana Real Estate Facilities
Nervous about an investment in what could be a booming industry if you can get approved.
Here are five tools every marijuana realtor needs based on this Business Wire story, According to Signal Bay, Inc. (OTC: SGBY), a provider of cannabis consulting, research, data, operations & laboratory services,
“Each applicant awarded a stage one license approval will have 365 days from the date of notification to complete all necessary steps to obtain a formal license and to request a final inspection. These steps will include raising capital, acquiring real estate, securing local zoning approvals, construction of facilities, installation of equipment and systems, and the hiring and training of staff.”
With that in mind, a realtor needs to have specific knowledge about the requirements of a medical marijuana dispensary business.
Here Are Five Tools Every Marijuana Realtor Needs:
- Fire Extinguisher – “the making of hash oil, a concentration of the active ingredient in marijuana, involves butane, which can become explosive.” Make sure the fire extinguisher is inspected and maintained, used by one trained in its use, located where it’s accessible, and in sufficient quantity and size to deal with the expected fire.
- Cash – “Most banks refuse to work with legal pot businesses for fear of being prosecuted under federal law, which can make it very hard to get a mortgage or loan. Banks are risk averse, leaving businesses to deal in mostly cash.” In other words, the realtor must learn new ways to launder money.
- Roommate – “If you’re a broker in a state where marijuana is legal, chances are you’re not living by yourself. The rent is probably too high. Taking on a roommate means you must have “the talk.” The Talk All Roommates Must Have – Don’t wait until you and your roommate move in to have the discussion.
- Tyvek Suit and 3MP100 Goggles – “Most buildings were not designed to be greenhouses. They contain many organic substances (drywall, for example), which make them susceptible to mold growth if exposed to water. And wouldn’t you know it, growing marijuana requires water. This can present a health risk to current and future tenants.”
- Knowledge of Miranda Rights – According to the White House website: “It is important to recognize that these state marijuana laws do not change the fact that using marijuana continues to be an offense under Federal law.” Even if a landlord has a successful negotiation with a commercial, industrial or residential tenant in a marijuana-related business, the federal government can seize the property if the tenant purchases assets from money earned from illegal activity or commits federal crimes on the property.
Yes, parts of the “Five Tools Every Marijuana Realtor Needs” is tongue in cheek, but people in the marijuana business will seek real estate with the proper zoning for marijuana cultivation and sales.
Where is Missouri with Marijuana? Cannabis in Missouri is illegal but decriminalized. Medical use was legalized in 2018 through a ballot initiative to amend the state constitution.
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