About 8 months ago I decided to invest in cannabis, our state has a new medical program, and it's booming. The stock market is slow and boring, so I looked for, and found, a grower that already had a successful business delivering across the state. He routinely grows 24% to 27% thc, and his buyers can't get enough. He just didn't have enough room to grow more than enough to support his family. I went in with $30K. We've tripled the size of his grow room to 900 sq ft with a new insulated steel building, 18 2-foot lights, air conditioning, and stores of nutrients and supplies. His first crop isn't full size, since it was started in the smaller facility, but we have 45 plants ready to harvest. He plans to harvest about every 6-7- weeks, as the crops will be staggered. My take will be 10% of his profits until I recover my initial investment, then 10% for 5 years. I'm interested to hear from others with similar experiences, or just if you want to opine on my deal. I'm new at this, so I'm not certain that I made the right call going in, but I'm having a great time.
That’s a hell of an investment. And it seems like low returns from our state. We’re more like 20-30 percent depending how bad people need the cash infusion. But as long as everyone is happy with it then it’s a good deal. Also it depends on how much the guy gets per square foot, and the price he charges for that. Also if he can unload the new bud that he didn’t have before. Sent from my iPhone using Grasscity Forum
20 to 30% are loanshark rates. Legitimate business rates are more in line with what OP has worked out.
Thanks for the comments from both. Just a quick update; we've since found that while the air handling scheme he had worked out for his original facility worked well, it didn't up-scale exactly with the new grow room. We're installing new air equipment, upgrading more lights, and other small improvements. I'm now at 60K, and he and I have agreed to a 50/50 partnership in a dispensary. We're building something new, and it's going to start a movement. Stay tuned.
Hello. I trust you're well. I wonder if you'd be interested in talking about using restored soil to increase your yields.
Thanks. Here's an October update: We couldn't land either of the two pieces of land we wanted, so we've scaled back our plans and are not going to build the "game changer" in our original plans. We've leased two office suites in a small 3-office building in the middle of town, our business name and license are complete with the state, we're doing our own interior construction, and we have an experienced dispensary manager on board setting up the retail. It's a thing of beauty, and beyond exciting. We're hoping we can get it open before Christmas (we're going to sell gift certificates). Stay tuned.
How does someone invest in cannabis? Is it not illegal? But from your explanations, it seems that this is the best investment someone could ask for. It might not be illegal in your country, but it’s unlawful in mine, and that is why I’m not interested in this. I prefer to continue investing in cryptocurrencies and trading forex. Even though I lose sometimes and the profit is low, it is better than having a problem with the government. Especially now that I have gotten a good strategy for my trade from 6 of the Best Swing Trading Strategies - Tim Thomas, I’ll keep trying hard no matter how slow my success will come. I’ll only have to be patient.
Hats off to OP. Unfortunately, when I invest “locally” it’s a felony so stocks are my choice. I dream of the day when businesses like that exist around here but something something, snowballs in hell, something.....