Marijuana Real Estate
CategoriesBUY/LEASE Cannabis

Marijuana Real Estate: Interest, Acquisition, and Competition

Acquire, Develop and Lease Cannabis Properties

The legalization of cannabis has changed the social attitude towards the industry. The industry has been gaining support, and there is increased demand in the market for real estate. Business owners are probing the market for real estate suitable for use in the cannabis market. There are various opportunities in the cannabis market and property that is eligible for use has seen a dramatic increase in price.

Legal Marijuana Industry

Since legalization the legal marijuana industry has experienced exponential growth each year. Current reports, assume that this trend is bound to continue.  Recreational marijuana will only make these estimates and reports even larger. The marijuana industry will continue to require suitable real estate in order to grow. State and municipal regulations such as setbacks and drug-free zones affect the amount real estate actually available to those looking to get into the business.

Marijuana Industry in Michigan

Michigan residents voted to legalize recreational marijuana in November of 2018. As per sources, the business will begin in early 2020. Investors and entrepreneurs are trying to get an advantage by getting into the medical market before the transition begins. The recreational law in Michigan restricts most recreational licenses to applicants who already hold a medical marijuana license.

Prior to grant a license from the state, it is essential to select the right location in Michigan. As with any business, success depends on not only quality of service, but location. Specifically, your business should have a good amount of the market share in the region it is located and be discernable from its competition.

Detroit Dispensary

Many property owners are leasing space for dispensary owners in Detroit. Beyond a state and city license for a dispensary, you need a building that is properly zoned. An experienced agent will help facilitate the buying experience as well as ensure property purchased fits its intended use.  

Detroit Michigan Map

There are numerous factors involved in potential real estate for Cannabis.

•        Features

•        Zoning issues

•        Legal and Financial considerations

•        Owning or Leasing

Real estate is an essential part included in the application process. It involves leasing, letter of intent, owning real estate, providing the deed, property tax clearance, etc. A marijuana real estate attorney can assist you with the entirety of the application process including any questions regarding the real estate. They can guide you with the advantages and disadvantages associated with owning v. leasing.

Work with Marijuana Real Estate Expert

The core strength of a firm is having fundamental knowledge in the industry. There are many obstacles and regulations changing and shaping the marijuana industry. In Detroit and the Metro Detroit area, our team can help connect you with service providers and business professionals who could assist you in your venture into the cannabis industry. These experts know to build business and teach you the tactics necessary to succeed in the cannabis industry.  

Final Verdict

Opportunities to enter and thrive in the marijuana industry are currently available. They may not always be though. Interest in the cannabis industry is constantly growing, this means competition for you and your business. It is essential for you as a property owner or lessee to have the knowledge about this industry and what it takes to be successful. Our team is prepared to assist you with the most up to date information as possible,  solutions for zoning issues, and tried and true business practices. Equipped with our team of legal and real estate experts will help you identify viable properties before your competition.

Get in Touch with licensed Marijuana Consultants.

We are eager to assist you in the acquisition of property. Our team of legal and real estate professionals are well equipped to assist you with any legal or real property issue you may have when looking for suitable real estate in Michigan. If you or anyone you know is considering a foray into the cannabis market, our expert team specializes in indoor facilities, acquisition of eligible properties, and sale or lease of a property. Please call us today for a consultation.


5 Steps to start a cannabis business in Michigan

Marijuana was recently legalized in Michigan, and we are still about 12 months from having any recreational marijuana facilities in the state. By legalizing marijuana for recreational use, Michigan joins 10 other states and the District of Columbia as the only recreational states within the U.S.

The cannabis industry has been growing at a rapid pace since legalization began. First with medicinal legalization and now with recreational, the cannabis market seems poised for even more growth in the coming years. Michigan is expected to be one of the largest marijuana business markets in the country. Some experts even believe it will be second only to California. The potential in the marijuana industry has attracted a lot of new faces to the industry, you may be one of them. The purpose of this article is to give newcomers a brief introduction into the industry by letting them know what steps they need to take to get a cannabis business started in Michigan.  Before we jump into the steps please review these facts about the cannabis industry in Michigan.

  • Marijuana business opportunities have plenty of options from producers, processors, provisioning centers, testers, and secure transporters.
  • Michigan regulations contain stipulations that require potential applicants for a recreational license to first hold medical cannabis licenses..
  • Michigan will have new licenses like the microbusiness licenses available for application when the recreational law is written.
  • Michigan also will allow for home grows for personal use.
  • Michigan has allowed cities to opt-out or in to legalization on a city by city basis.  

Here is 5 step guide about initiating cannabis business.


Step 1: Register business in Michigan

In order to initiate your cannabis business in Michigan, you must register an entity with the Department of Licensing And Regulatory Affairs (LARA). As with many other licensed businesses you should complete any application for a marijuana license in the entities name. After you have established your business with LARA you can begin the application process for any of the below licenses with the state:

  • Cannabis retailers
  • Cannabis wholesalers
  • Cannabis processors
  • Cannabis producers
  • Medical cannabis dispensaries
  • Medical processors.

You will also need the following licenses and permits to run your marijuana business :

Make sure you renew your registration every year before the present registration expires..

Step 2: Get your local cannabis permits and licenses.

Filling the sufficient documents with the state is not enough. In order to operate your business in a municipality, which will require municipal approval. Municipal approval also entails a seperate application process. Different licenses have different different requirements and it is important that you contact a professional to assist you with your application.

Step 3: Obtain Required Cannabis State License

Steps two and three are interchangeable and you can pursue state licensing before city or vice versa. The state license in Michigan will be required, and some cities require proof of a state application before they will even review your city application. A state license is required for any type of cannabis business to operate in Michigan.

Step 4: Determine your Tax Obligation

There are various taxes involved for Cannabis business. When organizing a business invest time by researching upcoming tax responsibilities. Michigan like other states requires that cannabis businesses pay an excise tax. This tax is something you have to disclose when applying for your IRS Employer Identification Number. Additionally, taxes will be levied differently depending on what type of business you operate. An example of this is provisioning centers are taxed differently than cannabis growers are, as such you should consult a qualified accountant to assist you in determining your tax liability.

Step 5: Anticipate Ongoing Business Registration Requirements.

The list of licensing, registration and compliance does not end here. On top of entity registration and renewals, every state and city issued cannabis license will require a yearly renewal for a set fee. You need to make sure you are prepared for these fees and understand when you need to file your paperwork. Reminders by the state and city will be sent, however we still recommend that you enlist the services of a professional when dealing with such matters.

In Sum

It is important to understand that these five steps are not all the considerations you need to take into account when starting your cannabis business, and is intended as a brief introduction into the bare minimum required when starting a new cannabis business. We highly recommend that you consult with a professional who can let you know if it is worth your time, energy, and money to get into the cannabis industry. You should understand that the journey from the beginning of the process to an up and running marijuana facility will be long and intrusive. You should be ready to lay your history out like an open book and have it examined thoroughly before you can proceed to licensure which will be the first step to starting a cannabis business in Michigan.



Finding the right location for your cannabis business can be very tricky especially if you are new to this business. It requires a good amount of research and some knowledge about city layouts. Today we are going to look at how we can find the best location for your prospective marijuana business.

Now before we dig deep into this matter lets look at some important facts about the Cannabis business and what are the start-up requirements.

•    The Research

Cannabis businesses are dictated by not only state law, but also municipal codes, ordinances, and laws. As a prospective business owner the easiest way for you to navigate these laws and get this research done is to hire a professional. There are many attorneys and real estate agents and brokers that deal specifically with marijuana that stand ready to assist you. For choosing a destination for your business you want to make sure that you research the city code to ensure that they allow medical marijuana facilities within their city limits. After you have confirmed that they allow marijuana facilities, you want to see where specifically those facilities are allowed. Usually, cities allow different types of facilities in different areas of the city. For example, marijuana grow facilities are almost always relegated to industrial zones, whereas provisioning centers are allowed in more traditional business settings.

Now that you have found a property in the specific zoning area where your business is allowed to be do you need to do any more research? the short answer is of course! In addition to zoning restrictions every city that allows a marijuana facility also requires mandatory setbacks from other establishments like churches, schools, parks,…etc. You will need to confirm the building you have selected complies with these setback requirements or your business will not be allowed to operate. You also need to consider parking, most cities require you to have parking sufficient to cater to your expected business. This means that in addition to all the above requirements you have to make sure the property you select has either a private parking lot, ample street parking, or land on the property that can be converted into a parking lot.

•    The Application

It is always better to speak to the local real estate professionals and attorneys before trying your hand at a marijuana application. For the sake of sticking with the topic of this article we will discuss only the municipal application process. In Michigan the application process is different from city to city. Some cities allow multiple applications on the same property, while others only allow one at a time. This is a very important distinction for you to know since you are a prospective cannabis business owner. For those cities that allow multiple applications on the same property, your application will usually be compared “apples to apples” with the other applicant, with the victor being the one that offers the most contribution by having their business approved. Additionally, all city applications charge a fee, which is non-refundable even if you are denied.

City applications also have different requirements for what you need to qualify for a cannabis business license. For example, in the city of Detroit you are required to show financing in the same amount and kind as you would with your state application. Whereas with other cities all that is required is showing that you are currently in process of acquiring a state license. These requirements are integral to knowing where you will locate your cannabis business because you could save valuable time and money and focus your efforts on the finding a suitable property as opposed to getting lost in the weeds.

•    What is Next

After you think you have found a suitable property you want to find out what kind of market for cannabis use or sale you are dealing with. All successful businesses take into account what percent of the market they will make up. In your case whatever cannabis business you choose to open, you should know not only how many others like you are in the area, but also how many are currently applying for locations in the area. Depending on whether you are one of the first in the area or really late to entering the area can make a huge difference as to whether this is actually the best location for your business. Additionally, some new cannabis business owners will have a unique approach to their specific business, like an Apple store themed dispensary that has become a state-wide chain in California, or vertically integrated facilities that are an all in one shop.

Finding the right location for your cannabis business is about a lot more than just the actual physical location. You need to consider  If this is your first time trying your hand at a cannabis business it is highly advisable that you hire a professional to assist you in completing this process. You will save yourself time, money, headache, and much more by working with someone who knows what to do in the aforementioned situations.  Speaking of marketing you want to ensure that your location is easy to find and you are able to get advertisements set online with dedicated cannabis sites like WeedMaps and Leafly which can, in turn, also help customers discover your facility.


The Complete Beginners Guide to Cannabis Loans.

The cannabis Industry generated a good amount of revenue in 2017 and 2018. Some estimated that the market was between about $9-$18 billion and they expect that it will double by 2020. The marijuana business is booming and this sector is expected to grow exponentially, while this sounds like an attractive opportunity, many of the most qualified people are locked out of the market, because they cannot afford to stake out their own claim. As most of you know one of the most important factors when starting a new business is finances. Without adequate financing your business could hit the ground before you have had a chance to really implement a business plan.  

The most difficult part about procuring adequate finances for a marijuana business is the fact that traditional lenders will not finance your business. Other businesses even ones with a rate of return much lower than marijuana will secure financing before your marijuana business. The main problem with lending in the marijuana industry is the fact that it is still federally illegal. Michigan has legalized marijuana medically and recreationally, however, traditional banks and lenders in the state still will not lend a hand to your marijuana business. If you are looking for a way to secure a capital contribution/investment to start your marijuana business you are reading the right article. This article will explore the financing options available to the still infantile marijuana market and how you can secure funding in a national banking system that does not support marijuana.

Obtaining funds for any business, most of all marijuana businesses can be an incredibly difficult task. You need to find a lender that offers you a rate that you are able to pay and a loan of the right amount. This is difficult since lenders, even those in the marijuana industry consider, marijuana businesses high risk. However, as the marijuana industry becomes more prevalent and regulated loans and investment opportunities should become more viable and easier to secure.

Options for funding cannabis businesses are limited but there are options. Whether you are a marijuana grower, provisioning center, processor, tester, or transporter you need funds to start your business. This article will explore the following funding options available to you currently in the cannabis industry.

  • Cannabis Commercial Real Estate Loans
  • Cannabis Leasing Equipment Loans
  • Hard Money Loans
  • Cannabis Business and Startup Loans

Cannabis Business and Startup Loans.

A cannabis business and startup loan is exactly what it sounds like, a loan that helps you start up your business. However, since the marijuana industry is still federally illegal, you cannot go to your local bank and take out a cannabis loan. This means you will have to work with companies that already work in the cannabis industry. These companies that are already lending in the cannabis industry set the market for what a start up loan can look like. In order to secure the most amount of financing from these lenders and private investors you need to have a very well put together pitch, by this we mean a legitimate business plan, and real figures based on estimated sales and costs. You will also need to demonstrate that not only are you capable of holding the marijuana business license you are applying for, but also you are in the process of completing the applications necessary for those licenses. If you pitch your business correctly you could secure the financing necessary to open your business.   

Hard Money Loans

Hard Money is a short-term bridge loan. Usually, hard money loans are secured by real property. Hard money loans typically have higher interest rates than traditional business loans, because they usually involve higher risk and a shorter repayment period. Additionally, hard money loans are issued by private lenders or investors they are able to be used by marijuana business owners. The benefits of a hard money loan when compared to traditional loans is the speed with which they can be issued, where traditional loans would take weeks or months to get set up, a hard money loan can be approved in a matter of days. A short turnaround time is important in the marijuana industry because with a marijuana business securing financing especially during the application process is necessary to get your business licensed. This option is good if you cannot secure any other means of financing.

Cannabis Real Estate Loans

For those marijuana business owners who can afford to self finance the operation but need help with purchasing, leasing, or building out an existing property cannabis real estate loans offer a viable avenue for funding. Private real estate money lenders will support you by offering the capital investment you need to get your business a physical location or the construction funds necessary to get your business started. Cannabis business owners could also use real estate loans to acquire start up capital if the lender agrees to such an agreement.

There are many cannabis real estate lenders that offer a diverse and creative investment strategies for your marijuana business. It is up to the business owners to choose right investor for their business. There are even real estate lenders in the cannabis industry that have tried to replicate the traditional real estate loan, and offer you a loan, secured by assets and title to the property in exchange for their lending you the capital you need. However, the cannabis industry is still new in Michigan and while such real estate loans carry a high interest rate now, as the risk goes down so should the rates, making this option much more realistic for many more prospective marijuana business owners.

Cannabis Equipment Leasing

Cannabis equipment leasing loans are loans that give marijuana business owner the option to purchase any type of equipment essential for their business. Especially in marijuana grow and processor facilities, your business will need equipment in order to generate income. While the red tape around lending to marijuana businesses is still in play, equipment financing loans allow you to utilize lender capital to secure the machinery, equipment, and supplies necessary to get your business up and running. As with other loans discussed, the risk involved typically means that this type of financing will involve a high interest rate. Funds made available through private lenders or investors and are available to cannabis growers, extracting companies, medical dispensaries, and seed producers so they can obtain high-quality equipment for their business.

Summing Up

Marijuana is still considered illegal on the federal level, as such traditional financing methods are not available to prospective and current marijuana business owners. Alternative lenders are a solution to the problem of finance in the cannabis industry. The above discussed methods are some of the best options available in the current marijuana market. They allow you as a marijuana business owner to secure financing for whatever your goal is and more importantly whatever stage of your business plan you are in. As with securing investments and loans with any other business make sure to do your due diligence and shop around, so that you ensure you are receiving the best possible deal for your marijuana business.

michigan cannabis real estate business growing

How michigan cannabis real estate business growing?

The accession of reason can be an overwhelming task in starting a cannabis-related business. One of the biggest problems that a lot of entrepreneurs in the cannabis real estate business face is the options for finance for their entities. This is because; credit unions and federally chartered financial institutions cannot provide medical marijuana real estate loans, since marijuana is still not federally legal. As a result of this, there is always the requirement for private financing options.

Michigan cannabis real estate loans offer hopeful medical marijuana business owners easy and quick access to private financing. With these private financiers, cannabis business owners can find investors who may offer cannabis financing for kitchens, marijuana warehouses and store-front properties. The private real estate money lenders will offer the capitals required for marijuana business owners to refinance or acquire a property. The lenders at the private financing company can also provide cannabis entrepreneurs who maintain cannabis business tenants with capital for refinancing or purchasing. With cannabis loan lenders, marijuana entrepreneurs may also cash-out for business capital as well as tenant improvements.

How does cannabis funding work?

As an alternative for cannabis business owners to acquire their own real estate, they may be able to find investors to be their landlords. Private financing companies for medical marijuana business will also have investors who look to acquire buildings for growing cannabis. There may also be investors who can help in finance upgrades and improvements as per their tenants’ requests. Apart from these, investors can offer long-term leasing and negotiation options for purchasing properties in the long run.

Cannabis investment companies will match private loans for property used by marijuana related business that is appropriately licensed according to the state laws. Some of the basic guidelines for medical cannabis business loans can include:

  • The property should be suitable for qualifying for a cannabis business loan
  • The property should be in the state where cannabis business is legal
  • The loan amount may vary with different lenders

With limited financing options and a plethora of cannabis business being launched every day, business owners find it difficult to get the capital for their cannabis business. Finding funding for business has been easy. Though small businesses can get loans easily, interests and loan payments can be unbearable for startup businesses. Now, if getting financing for regular businesses if difficult, finding money for cannabis business is more difficult. Inspire of the countless cannabis business funding companies on the market, getting the credit has been a very difficult thing for cannabis entrepreneurs.

Considering the fact that traditional funding institutions and banks don’t get provide loans to cannabis business owners, most marijuana entrepreneurs tend to rely on friends and family for real estate and/or seed capital. However, not everyone around us will be willing to take the risk of their money for this business.

This is when people look for alternative funding options for their cannabis business. Some of the most common cannabis business capital sources can include:

  • Hedge funds
  • Family offices
  • Athletes, celebrities and musicians
  • Angel investors
  • Business incubators and accelerators

Though the cannabis industry is still in its early stage, the probability of growth in the medical marijuana sector has a lot of private investors. Lenders with the aim of supporting cannabis-related business are for sure on a steady rise. Since there is a huge space for innovation in the cannabis industry, investors are being attracted towards still emerging marijuana business.

What can the cannabis funding use for?

BDS Analytics and Arcview Market Research have predicted that the legal marijuana industry may reach $40 billion in 2021. This means; there will be an increase of 150% from what it was in 2017. This growth will be the result of the legalization of cannabis use spreads throughout the nation.

With such demand and growth in place, cannabis business funding companies lend capital to business owners for

  • Building out existing spaces
  • Constructing new properties
  • Purchasing commercial properties
  • Cashing out and refinancing
  • Purchasing raw land
  • And a lot more

Some people may wonder as to how the cannabis funding industry works. Big banks and financial institutions won’t lend money to legal marijuana business owners. Hence, we understand that financing and banking options are limited. However, there is a requirement and funding could be found.

Numerous reasons could flicker the demand for the flow of capital. Some entrepreneurs would self-fund their business from business profits or personal savings. On the other hand, others will have to look for money elsewhere. Both equity financing and debt exist for this business. It is up to the business owners to find the right investor for their medical marijuana businesses.

Statista states that the cannabis industry has made around $3.2 billion in the USA in 2017. People who are already in the business or getting into it can image what the industry will look like in the future. So, this is the right time for investing in the cannabis business. A great number of people have realized this fact and invested their money and time into the recreational marijuana real estate industry, while a lot of them are reaping the benefits already.

In such a scenario, what holds people back from venturing into the medical marijuana business is the funding. Since the industry is still emerging while being considered risky, cannabis real estate loans for business owners would come with huge interest rates. This is one thing that stands between cannabis growers and their success.

Here is what people should understand about medical marijuana business and how they find cannabis business funding for their investment.


It is different for cannabis industry. Generally, borrowers provide collateral to the lenders, so that the lender has it as a security in case the borrower fails to pay the loan amount back. For marijuana businesses, borrowers cannot provide cultivation equipment or up grow as collateral.

At times, this means medical marijuana business owners have to provide something else as a means of collateral. In case, they have nothing to offer, there are various cannabis business financing options which could perfect for getting your medical marijuana business skyrocketing. Based on the above stated aspects, cannabis business owners can look for cannabis-related real estate funding capital.

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