Buy Low And Sell High
Colorado, Washington, Oregon and Alaska all have recreational marijuana regulations. And there’s a very good possibility that Nevada, California, Maine, and Arizona will follow in the footsteps.
Lets start with the facts.
Colorado, Washington, Oregon, Alaska, Nevada and California have seen an increase in real estate transactions and an increase in property values. Properties are in demand and causing a lack of inventory. This demand has seen the cash buyer and the cash buyer makes for a quick closing.
Compound this with the cash buyers from overseas. The bulk of foreign cash investors are from Canada, China, and Japan.
Here is another factor that inflates real estate values…
Institutional investors are causing part of the demand.
Institutional investors can be defined as buyers purchasing at least 10 residential homes in a calendar year, and are Wall Street backed companies. The institutional buyer’s almost always use cash and average 10 home closings per day. Their intention is to spend billions and amass a portfolio of many thousands of properties.
Let your imagination run wild here.
There are reports that the people representing these institutions never even walk thru some of the properties. Wall Street plans on making money. In the meantime, rentals have become inflated and you can plan on rentals being incredibly inflated in legal marijuana cities.
Wall Street might be smart but I’ve been studying Nevada for a year.
The saying is: “buy low and sell high.” If Wall Street has investors interested in these marijuana states then all real estate investors should be interested. Entrepreneurs should consider one property for a long-term investment, because the rental market will only continue to inflate. The small mom and pop investor will be doing more research on a property than the institutional buyer.
More states will become marijuana friendly and all investors will jockey for position.
A medical marijuana business plan
I have been a resident of Colorado for twenty-six years and am a consultant at Farming And Land Development. I was the owner of a Denver medical marijuana dispensary which sold for my early retirement.
My book, titled “Colorado Marijuana Real Estate,” is a how to guide for entrepreneurs and the blue-collar guy. This book explains the Colorado evolution of legal marijuana from 2001 to 2014.
What’s more, this book provides you with a blueprint for starting a medical marijuana business plan.