2 Rules For Avoiding Cannabis-Related Property Traps
By Dennis Baranowski ( May 22, 2017, 3:10 PM EDT) -- The "Green Rush" is upon us! The majority of states have passed laws legalizing marijuana to varying degrees, from limited medical use to recreational consumption. As a result of the ever growing acceptance and legalization of cannabis, a multibillion dollar industry is emerging. Scores of entrepreneurs are looking to capitalize on the Green Rush and many of them are seeking capital to bring their dreams to fruition. Real estate occupies a critical position to the development of the cannabis industry since it is a fundamental need for the operation of most sectors; whether it be arable land, industrial buildings or retail space. Similar to the Gold Rush of 1849 where the majority of prospectors realized little to no return from their labors, the Green Rush is destined to yield the same result. However, those that know where to mine for gold, will be able to stake their claim in an infant industry that is on the rise. So what can you do to weed out (no pun intended) the bad deals from the good? The likelihood of success in lending to and investing, directly or indirectly, in real estate used for the operation of a cannabis business can be achieved if you follow a couple of basic rules in evaluating the proper market value of the subject property....
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