Cannabis Real Estate FAQs
Starting any business is not easy- and starting a cannabis business is even more difficult, complicated, risk oriented, and can often involve many unexpected upfront costs
Finding a professional that can help lead you through the industry pitfalls is imperative for success in this emerging market. Cannabis consulting companies will guide you to a higher chance of success based on their past experiences.
No matter what stage of business growth you are in, a trusted partner can help you establish a budget, predict a timeline, find a legal property, secure permit & cannabis licenses, stay compliant with regulations, and establish long-term business planning.
Canna-advisors and cannabis consulting firms are crucial in avoiding costly mistakes. By reading this blog post, we hope you learn from our research and experience to keep your business venture operational for many years into the ever-changing legal market.
Ready to just get started? Click here to contact us about consulting and find a cannabis consultant to help!
Finding A Property
The cornerstone of your operational business is finding the real estate for it. Securing your location would be the first task after you decide what type of cannabis business you’d like to have.
A general checklist for acquiring a property for this special industry includes:
Finding the right agent or broker. There are a lot of great real estate agents and brokers out there. Perhaps you may be one yourself. However, this particular kind of real estate is another animal, and personal knowledge of the cannabis industry is a must. Your agent must have the skill to not only find you a property, but find you a property that is best for your business type. Knowing the day to day business operations for a cultivation, manufacturing, dispensary/delivery, distribution, or testing facility are important. Getting the details right is what can make or break a sale.
Locating a legal 420 property. Identifying green zones and viable properties within take time and know-how. You must identify sensitive uses and the buffer zones where your business cannot legally be located. For example, in Los Angeles you cannot have two retail cannabis businesses within 700 feet of each other, a school, park, public library, drug and alcohol rehabilitation center, day care or permanent supportive housing, or within 200 feet of a residential area. (It can get pretty complicated, and is designated by license type)
Finding 420 friendly landlords. Even though this industry is booming, there are still complications with regard to prejudice and stigmas about cannabis. Not everyone is onboard and it takes time, patience and education to ease this process at times.
Frequently check up on local regulations/ordinances. These can sometimes be changing from month to month. Staying on top of what your city council is proposing, amending and commenting on assists in locating the best properties and staying ahead of the curve.
Green rush consulting puts you in the hands of professionals who understand the industry and can help you find solutions to these real estate problems you may not have realized were going to be an issue.
So you’ve secured your location, your license, and you’re ready for operations!
Do you still need consulting?
Staying compliant with local and state regulations for cannabis operations is vital, as non-compliance can result in losing your license and damaging all the work you’ve done to get to this point. There is a lot to know and you want to find professional companies for each aspect of your business for ensure compliance.
Examples of how to stay compliant:
- Pay Your Taxes. Do not let this take you by surprise. Being ill-prepared for the amount of taxes that must be paid has been the downfall of many a cannabusiness.
- Test Your Products. Testing is required by law in most legal states, and selling untested products can result in a loss of licensing.
- Understanding Caps. Often times, municipalities will have square-footage caps for cultivation and nurseries. Being aware of these can help you zero-in with your real estate search and meet the city’s requirements.
- Packaging Compliance. Making sure any packaging or labels of products follow all state regulations is vital. Failure to do so can cause you to be shut down.
- Proper Security. Setting up proper securities as outlined in local ordinances with regards to guards, video cameras and design.
- Taking Inventory. Most ordinances will outline procedural compliance with regards to how to take inventory.
- Sales Procedures. State regulations are usually very specific about how to make a sale. Ie: asking for ID twice.
- Implementing Seed-to-Sale. Understanding and participating in seed-to-sale tracking of products. This affects every license type.
- Marketing Laws. You must be rigorously compliant in how you market your company or products. There are specific laws on how anything cannabis related is marketed.
It’s extremely important to keep your company compliant, or you run the risk of missing out on that $50 Billion Dollar pie if you don’t.
If this all seems overwhelming– please don’t worry. A good consulting partner can help you map all this out and create a comprehensive plan for success.
Cannabis becoming a regulated product means licensed businesses are required to work with other licensed businesses.
If you are a grower, you will want a reliable and trusted distributor to get your product to a retailer. If you are a retailer, you will need to be connected with loads of licensed cannabis vendors. The supply chain from seed-to-sale gives way for a myriad of business types and ancillary cannabis services to flourish.
Consulting companies typically have a large network of licensed businesses that they’ve worked with and want to connect you with. Developing strategic partnerships with your canna-consultant can help expand your network and introduce you to a trusted partner to help you grow. Even if you are just looking to invest in cannabis, there are many options and experienced assistance can be a significant difference between profit and loss.