Cannabis Real Estate Michigan is a real estate investment property type. This type of property would be in one of the many commercial license areas that are newly legal for Michigan. This includes indoor cultivation, production, testing and packaging, dispensing and transportation/delivery. With this license comes the ability to build a brand new building or add onto an existing facility that is already licensed. As well as access to additional rights to grow on your property, allowing for bigger yields than what is allowed in your current license.
Buying into this type of real estate investment requires more ambition than purchasing stock in a cannabis company because you are buying into an industry that’s still trying to find its footing. This can mean changes in regulation and laws on a state, national and global level. It requires working with land use boards as well as local governments as they get up to speed on legalization. It also requires you to deal with state licensing boards, county clerks and the local county prosecutor’s office to ensure that you have a license under the proper regulations.
How much does Cannabis Real Estate Michigan Cost?
Cannabis Real Estate Michigan properties can be broken down into two categories. The first category is an area with a Medical Home Grow Provision (M-HGP). These are considered separately because the rules on this type of property are much different than what was previously mentioned. The M-HGP property is one you purchase in a county where patients can grow up to 12 plants on their property every renewal period. These properties have restrictions placed on them that limit the ability of the owner to expand the business and can put limitations on ownership in general.
The second category is one you would purchase in a county that doesn’t offer M-HGP. Properties in this group can grow more than 12 plants every renewal period and are not as restricted on what can happen to them and the business they generate. Cannabis Real Estate Michigan properties can be purchased in either an M-HGP or non-M-HGP counties and sold anywhere. This allows the investor to search for the right location to buy the next property before they sell their current property. There is also a place in MI called an outdoor grow, which has fewer restrictions but no ability to have a retail space where you can sell your product.
Does Cannabis Real Estate Michigan have restrictions?
Michigan has a few restrictions depending on which type of Cannabis Real Estate Michigan property you are looking at. First, you have to be 18 years of age to purchase one of these properties in general. Some exceptions for some licenses allow people under 21 and already registered caregivers to buy a marijuana property. Still, they provide different perks than someone who is an investor. If you are looking at places with M-HGP, you must be a caregiver under 21 years old and have a valid MMJ card.
The second restriction is that you can’t have a specific type of felony on your record. This restriction ensures that people with a history of drug trafficking or violent character cannot purchase and own these types of properties. There are also not supposed to be any restrictions on your criminal convictions. Still, there are multiple counties around Michigan where they pose limitations and will deny you a license because of them.
The third restriction is that you can’t operate if your local jurisdiction does not allow it. This is a massive problem for the cannabis industry as many areas in Michigan aren’t allowing for recreational businesses yet. The medical marijuana dispensaries, by their own rules, cannot conduct business outside the state guidelines set forth. You can’t open a retail business to sell cannabis goods until your county allows it.
What are the benefits of Cannabis Real Estate in Michigan properties?
The most significant benefit of a Cannabis Real Estate Michigan property is the ability to expand beyond your current license. There are many reasons a business may want to do this. They may have more people in their location than they can handle. So They may want to focus on one aspect of their business and eliminate the rest. They might buy up properties around them and integrate them into one large growing/processing/dispensing facility. These reasons are all viable for people who have proper licensing and command of what is happening in the industry.
Another significant benefit often overlooked is the ability to make money in your investment. The cannabis industry is still growing, and more people are getting involved daily. This means that the demand for these properties will continue to increase. It also means that you can cash flow right out of the gate when you buy these properties and begin profiting as soon as possible. For a great example, look at a medical marijuana facility called Green Light Grow in Ann Arbor, Michigan. Which has grown from $2.4 million in monthly sales to $8 million in monthly sales in just a year and a half. This type of story is becoming more familiar with each passing day.
What do you need to get started?
This type of real estate is not for the faint at heart. It takes a lot of work and dedication to making this property what it can be. It would help if you had a good grasp of marketing, sound knowledge of the business you are trying to run and, most importantly. You need to ensure that your local township allows for real estate growth. You also need to stay up-to-date with new state laws, business trends and changes in regulations. So that you can decide when it makes sense for you to expand your operation or even sell one of your existing properties.
Labour costs are also a big part of this industry and can be one of the main reasons why some growers buy multiple properties. The individual who is going to be managing. These properties needs to have a basic understanding of cannabis cultivation and operations. To get an idea of what it takes to grow marijuana. Look at this business plan example for Sunbury Growers in Ann Arbor, Michigan. You may need to go smaller than this operation. You will want to ensure that your staff can meet customer demand. Any delays or hiccups in service can cause a clientele loss which results in less profit for you.
Conclusion
Michigan is on the precipice of becoming one of the largest cannabis industries in the nation. With a population of around 10 million people and an expected surge in tourism from neighbouring states as more states legalize medical marijuana. It’s no wonder that investors are looking to get their piece of the pie. This new industry is exciting and offers many different avenues for businesses and investors. Do your homework, stay up to date with changes in laws and regulations, and research local township ordinances. You can find a Cannabis Real Estate Michigan property that will pay itself off with big profits.
