[QUANTUMeCANNics]

Originally Posted by Daub Marley

Think another step ahead. Everyone will be outdoor and warehouses will only hold business operations not grows. Any indoor growing related businesses will fail or be considerably culled.

Oh believe me I have thought ahead...there is a specific reason I say buy warehouses and not, go buy land for outdoor cultivation sites.

Greenhouses and land is a good way to go, but land is cheap and as laws continue to expand it will be impossible to lock up all the land to the point where the price inflates... On the other hand, everywhere that pot gets legalized you will have a rush of people trying to secure indoor grows. This is what has happened here in CO. There is only a finite amount of warehouse space in each city and the price that it cost to purchase commercial land and then build a warehouse is huge. Because of this finite space, rent has tripled by the sq ft and if you want to set up a grow it is only advantageous to you and the landlord to sign a 15 year contract or so. (You don't want to drop 2 million bucks on a build out to have the landlord come back in 5 years and try to raise your monthly rate.) This is the trend to take advantage of...As the landlord you get triple the rent for the next 15 years, while your tenant is happy to have even found a place to grow!!! Then once that 15 years is up, your warehouse is already built out, ready for the next grower to just come right in and start growing, no need for build out. Now you are getting substantially more per month than you were with the previous 15 year tenant. Yes, people will move more and more to outdoor as they realize you can grow great pot outside in a green house and harvest year round and it is cheaper. But they won't realize that soon, nor will it be ubiquitous amongst the growing community. Also, they will be the ones asking for a long term lease. You are just the polite landlord obliging to help a starting business! --Who is also savvy enough to have his whole investment in the initial warehouse payed off long before that initial 15 year lease is up! If the pot gardeners aren't growing indoors anymore in 15 years, oh well, you now have ample warehouse space for lease that as far as you are concerned, is now payed off! A good size warehouse can net someone a few hundred thousand a year in just leasing it out. If you are looking for sound investments find the resources in the industry that are limited and scoop them up. BTW, this is actually already happening in places like Florida, that are getting ready to go medical. I know a group that just purchased a few 150,000 sq warehouses in Florida in preparation for the new laws.

Also, having the warehouse space when the laws change means that you will have less hiccups if you yourself want to immediately apply for one of the licenses that will be available.

[RoadRash]

Originally Posted by yortbogey

WA~cannabis tour guide for all the out-of-state visitors...no really

Smoke it up on Mt. Rainier !

awesome place, but that hotel at the top is pricey.

[Daub Marley]

Originally Posted by QUANTUMeCANNics

Yes, people will move more and more to outdoor as they realize you can grow great pot outside in a green house and harvest year round and it is cheaper. But they won't realize that soon, nor will it be ubiquitous amongst the growing community.

What?? No way man that is immediate. ANYONE that leases a warehouse with indoor lighting will be toasted in like one year tops after full legalization. The only reason this is even playing out as you described right now is because it is federally illegal and the price is overly inflated. Indoor protects from rippers and because its price is inflated and running lights is still economically advantageous. However when there are acres upon acres of cannabis growing outdoors then the price drops, rippers start to not care, and growing indoors will be done forever. Only breeding and cloning nurseries will be indoor.
There are so many better opportunities to work towards. Don't touch anything indoor with a ten foot pole!

[QUANTUMeCANNics]

Originally Posted by Daub Marley

What?? No way man that is immediate. ANYONE that leases a warehouse with indoor lighting will be toasted in like one year tops after full legalization. The only reason this is even playing out as you described right now is because it is federally illegal and the price is overly inflated. Indoor protects from rippers and because its price is inflated and running lights is still economically advantageous. However when there are acres upon acres of cannabis growing outdoors then the price drops, rippers start to not care, and growing indoors will be done forever. Only breeding and cloning nurseries will be indoor.
There are so many better opportunities to work towards. Don't touch anything indoor with a ten foot pole!

HaHa, There are still going to be indoor grows for a long time. Just because you obviously think the future is in outdoor gardening does not mean that everyone shares that opinion. For example, I met with two owners of an undisclosed dispensary here in the Springs last Wednesday that specifically told me they have looked into greenhouses and found them to be not a worthy investment here in Colorado because of several factors that they then listed out. Personally, I chuckled in side my own head at their naivety, but that just goes to show you how stuck in their ways people are. Don't be quick to think everyone is so eager to change! Not to mention, there are parts of the country where it will cost almost as much as a warehouse to run a commercial sized controlled greenhouse equipped with supplemental lighting, automated light deprivation machines and environmental controls. So people in these regions especially will not be so quick to go outside, when indoors is already working well for them.

Keep in mind that I am not saying that in 30 years from now everyone won't be wise to growing outside. Eventually we will have certain regions of the country that specialize in pot production just like oranges or avocados or any other ag product. I am merely pointing out a trend to exploit here at the beginning of the legalization movement. Take it or leave it, I could care less!


I also am of the opinion that even with full scale federal legalization that the price of ALL pot will not fall so drastically. I like Rosenthals comparison to the tomato model. Even today, with tobacco fully legal you still have cigar manufacturers that command especially high prices. Not all growers will be compensated equally... Those of us with better product will hopefully still have plenty of people willing to pay us what it is worth to grow. Like Craft Breweries...

[Daub Marley]

Originally Posted by QUANTUMeCANNics

HaHa, There are still going to be indoor grows for a long time. Just because you obviously think the future is in outdoor gardening does not mean that everyone shares that opinion.

I agree, but there is no denying the economic advantages to outdoor. Its just math and money. People will be slapped in the face rather quickly and wake up.

Originally Posted by QUANTUMeCANNics

Not to mention, there are parts of the country where it will cost almost as much as a warehouse to run a commercial sized controlled greenhouse equipped with supplemental lighting, automated light deprivation machines and environmental controls. So people in these regions especially will not be so quick to go outside, when indoors is already working well for them.

It will be comparable. If you really want to make money look into making automated dep greenhouses. If you can make that very cheaply then you might have something. Then again you will still be in a margin fight with those who don't use any greenhouse, supplemental lighting, etc, and do things on a much larger scale. I think that anything you can do to make things that were expensive much cheaper is the best bet. Automated trimmers, automated light dep greenhouse, large scale extraction systems, etc. I don't disagree with you that some brands/strains will retain a somewhat high price, but I think as a whole prices will drop substantially. All I'm saying is that you should make your investments with the outlook that prices will fall and just don't be caught on the wrong side.

[swordsman]

Any indoor growing related businesses will fail or be considerably culled.

The biggest expense with producing cannabis is trimming, not electricity.

Indoor grows still have huge advantages over outdoors and greenhouses. Greenhouses have their drawbacks too.

[jaybaked]

Originally Posted by swordsman

The biggest expense with producing cannabis is trimming, not electricity.

-This is true for the majority of successful outdoor grows. For indoor operations, there are a lot more variables though. Electricity is crazy expensive in CA, and would probably cost more than trimming.

Indoor grows still have huge advantages over outdoors and greenhouses. Greenhouses have their drawbacks too.

Indoor grows certainly do have some advantages, but when compared to a properly outfitted CEA greenhouse, not very many. I would think the largest benefit would be the greater level of consistency of the product for medical usage.

-I think that both greenhouse and indoor will continue to share a large part of the market for a good while, but given enough time greenhouse will be dominating.

[jaybaked]

Originally Posted by QUANTUMeCANNics

Oh believe me I have thought ahead...there is a specific reason I say buy warehouses and not, go buy land for outdoor cultivation sites.

Greenhouses and land is a good way to go, but land is cheap and as laws continue to expand it will be impossible to lock up all the land to the point where the price inflates... On the other hand, everywhere that pot gets legalized you will have a rush of people trying to secure indoor grows. This is what has happened here in CO. There is only a finite amount of warehouse space in each city and the price that it cost to purchase commercial land and then build a warehouse is huge. Because of this finite space, rent has tripled by the sq ft and if you want to set up a grow it is only advantageous to you and the landlord to sign a 15 year contract or so. (You don't want to drop 2 million bucks on a build out to have the landlord come back in 5 years and try to raise your monthly rate.) This is the trend to take advantage of...As the landlord you get triple the rent for the next 15 years, while your tenant is happy to have even found a place to grow!!! Then once that 15 years is up, your warehouse is already built out, ready for the next grower to just come right in and start growing, no need for build out. Now you are getting substantially more per month than you were with the previous 15 year tenant. Yes, people will move more and more to outdoor as they realize you can grow great pot outside in a green house and harvest year round and it is cheaper. But they won't realize that soon, nor will it be ubiquitous amongst the growing community. Also, they will be the ones asking for a long term lease. You are just the polite landlord obliging to help a starting business! --Who is also savvy enough to have his whole investment in the initial warehouse payed off long before that initial 15 year lease is up! If the pot gardeners aren't growing indoors anymore in 15 years, oh well, you now have ample warehouse space for lease that as far as you are concerned, is now payed off! A good size warehouse can net someone a few hundred thousand a year in just leasing it out. If you are looking for sound investments find the resources in the industry that are limited and scoop them up. BTW, this is actually already happening in places like Florida, that are getting ready to go medical. I know a group that just purchased a few 150,000 sq warehouses in Florida in preparation for the new laws.

Also, having the warehouse space when the laws change means that you will have less hiccups if you yourself want to immediately apply for one of the licenses that will be available.

This is why I began the company I started. We do modular buildouts/warehouse conversions, and also free standing modular construction. I can get it built out for usually a bit less than stick and drywall, and in a fraction of the time. Plus the materials are sterile and free of wood and drywall, so no mold/mildew ever. If you have to relocate, you dismantle the structure and bring it on to the next. You can also have the facility inspected, and the building permit signed off in the future once the new legislation come into act in California ,since all the work is visible/accessible. Here's my website Modulargrowsolutions.com .

[jaybaked]

Here's a link www.Modulargrowsolutions.com

[Obsidian]

the money is in the ancillary businesses needed for the whole legalization and recreational movement.
check out the regulations in CO and OR and see what's needed for running a legal rec grow, or any of the businesses surrounding the grow industry. That's where lots of money is sitting, waiting to be gleaned due to these regulations.
Lot's of huge opportunity for people to get involved in the cannabis industry.

A person does not have to grow to bank good $$$.

think about it for a few while reading just what is needed.
if you are creative, you will see...