In the unstable and risky marijuana industry anything can happen — your neighbor could wage a Racketeer Influenced and Corrupt Organizations Act suit against you, your bank can tell you that you need to move your money to another institution, or you could lose your license for a small screw up.
But in all of this uncertainty and risk, pot entrepreneurs are making one safe bet: buying real estate.
“With so many obstacles and regulations in our way, owning your real estate is the only thing we can control in this industry,” says Sally Vander Veer, cofounder and CFO of Denver-based marijuana cultivator and retailer Medicine Man. “It’s essential to long-term success.”
Aside from being a simple and time-tested investment, Vander Veer says owning your own real estate is also a smart way to safely store your money, as long as property values hold or increase. And surprisingly, property ownership is actually a flack jacket that protects your business from a frequent nightmare scenario in the pot business. [Read more at Inc. magazine]