Buying Is Better Than Leasing
Keep an Eye on Zoning
Especially in California, cannabis businesses and growers are restricted to designated zones. These zones differ depending on whether the business is a dispensary, cultivator or manufacturer. Observing a few basic guidelines can help you determine whether a site is suitable for your business:
- Most zoning regulations limit the number of cannabis businesses. Avoiding dense concentrations of cannabis-related stores is usually a good idea to stay within the letter of the law.
- Residential areas may place added restrictions on businesses operating in their area. This is especially true for growers and manufacturers of cannabis products.
- Zoning regulations typically require a 1,000-foot distance between cannabis businesses and schools, parks and other areas where children congregate.
- Environmental issues should also be considered by growers of cannabis products in California and throughout the West Coast.
Most counties and cities require cannabis-related businesses to submit an application to sell, grow or manufacture these substances within their city or county limits.
Keeping a close eye on changes to zoning and local regulations can help you stay on the right side of the law when pursuing your cannabis-related business on the West Coast.
Monitor Rising Prices
Consider Legal Repercussions
Most experts recommend setting up a limited liability corporation (LLC) or other entity as the owner of your cannabis-based business.
This can shield you from potential legal entanglements created by the federal government’s ongoing prohibitions on marijuana and cannabis while ensuring that your other real estate properties are securely separated from your cannabis-related investments.
Investigate Alternative Lending Arrangements
The uncertain legal status of cannabis-related investments can scare off traditional banks that rely on federal backing for their financial transactions. Working with an alternative lender, like ReProp Financial, is the best way to get the necessary funding for your cannabis-based real estate investments.
Taking these factors into consideration can help you make the most profitable and practical moves when entering the cannabis marketplace and obtaining the right real estate properties to pursue your investment goals.