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Grow Space For Lease?

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  • Start date Start date Jun 29, 2015
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Grow Space For Lease?

kuz Jun 29, 2015 52 Replies 9,820 Views
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K

kuz

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#21
I dont know a lot of things. I dont know what resolution my security cameras have to be, so many little details. Thats why it would be ideal to rent space that was built out by someone who knows the ropes. I am sure that when I find the right property I can make it work.

yes, trying to find someone to buy the property and lease it too me.

I need to look at California, whats up with the rules for growers there. It does seem to be much simpler and less regulated.

After we legalized the congress began working on regulations, they were leaning towards "vertical integration", a couple weeks before congress session ended that year, the govenor came out with a report criticizing the vertical integration model, and congress had to scramble to come up with a new model, one with wholesalers and retailers. Which I considered and still do, an opportunity for smaller growers to get into the game.
 
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derkaderk

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#22
California is still about stacking recs, and finding a city with favorable zoning. But real estate is expensive, and water, and power, lol...it's just expensive.....BUT and endless consumer base(feels that way)

I think cali will make similar restrictions as CO, but if you can get in the game and make enough to be ready for recreational standards when they drop, you're golden.

On the other hand of you wait too long there, it will be the same situation as CO...skyrocketing real estate, and rent, flooded market, etc. But if you already have a client base and brand those aren't such big speed bumps.
 
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Apollo13

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#23
I just think that kind of grow has a limited future. When(hopefully) it becomes legal federally only growers that want to grow will do so, like gardens are now. Either meijers or Walmart is where most get their vegetables. Some will summer grow but for the most part, will buy their herb. The storage idea has a future long after or if the feds legalize. It works either way. How many tobacco gardeners u know?
 
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Apollo13

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#24
I cut some huge costs and produce huge numbers on small dimes with greenhouses. It would only harvest once a year, but way cheaper and keeps producing year after year. You can build em cheap, maybe pay for inside space.. just a thought if u can't get backing.
 
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derkaderk

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#25
@Apollo13 you could always add lights after the first year, and go full year round the next....especially in the central valley.
 
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kuz

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#26
Apollo13 said:
I cut some huge costs and produce huge numbers on small dimes with greenhouses. It would only harvest once a year, but way cheaper and keeps producing year after year. You can build em cheap, maybe pay for inside space.. just a thought if u can't get backing.
Click to expand...
had the same thought. Tried to convince the county to let me bury some cargo containers and grow in there, no way. That was the cheapest way I could come up with to get started. Old school, bury the school bus for a grow room. lol. They got busted anyway.
 
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Apollo13

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#27
Yeah, I'm in michigan, cheap hoop house with plastic is hard to heat. Why I go inside.

I know with kids in the house, the "storage u grow" would allow many to grow. Then u could do a grow store connected to it. Have experts on site, heck maybe a dispensary. Like the Walmart of grows, everything under one roof.. I love dreaming..I was rich once by hard work, been trying to get it back ever since. I just can't seem to find a way..
 
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kuz

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#28
Apollo13 said:
Yeah, I'm in michigan, cheap hoop house with plastic is hard to heat. Why I go inside.

I know with kids in the house, the "storage u grow" would allow many to grow. Then u could do a grow store connected to it. Have experts on site, heck maybe a dispensary. Like the Walmart of grows, everything under one roof.. I love dreaming..I was rich once by hard work, been trying to get it back ever since. I just can't seem to find a way..
Click to expand...
We are thinking the same thing, maybe your thinking something like 10'x10' rooms, I'm thinking 50'x50' stand alone buildings.
 
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Apollo13

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#29
Yup, whatever size u want to grow, rent by cubic foot. Just like storage sizes.. I got the property and I work in my grow full time, so I can put in time and the property if someone can cut the red tape and have a lil money to invest. Also have a 40x30 cement floor barn we could get going with. And maybe access to a huge metal barn like 50x 100... I'm tired of being poor..lol
 
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kuz

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#30
Apollo, sounds like you got something to work with. I want to stay in Colorado if possible.

A republican in Texas introduced a law to legalize with no regulation, none, no restrictions. grow it, smoke it, sell it, no rules. The way it should be. It actually had some support. I guess that would allow public use and no zoning hassles.

The flaw with my idea of leasing to smaller farmers is that I dont know if you can find enough that want to get the license. I knew that already, from the ones I know in person, not to many would consider it. but just wanted to throw it out here. And now I will continue my search for a vacant building.
 
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Apollo13

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#31
With all the failed business around, a building ought to be easy if u got cash.. I think like field of dreams, build it, they will come.. many won't want others to know their growing. I have a few buddies that have businesses and would die if their customers knew.. pay big money to be discreet. Weather we do it or not, it will become real, it will be another idea I didn't pursue and will be sad when I see it, like the grow store idea. Buddy backed out, said it wouldn't work. Believe me, it worked..at least here.. good luck. If u make it big, give me a job!
 
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kuz

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#32
Problem is zoning in the towns, water in the county, and my limited funds. Temporary moratorium in this county while they decide if they want to limit grows.

Next county over is trying to use weed to boost the economy, no limit on grows so far.
 
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muir

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#33
I am a week or so away from my certificate of occupancy on a tiny 30 light grow and retail store. New 5 year lease. Turnkey ready. Will be taking offers. If the right one comes along, I'm out and off to Fiji for a year.
 
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420circuit

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#34
Ballpark number?
 
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jumpincactus

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#35
chickenman said:
Nowhere near.....I live somewhere over the rainbow... Where bluebirds fly....
Click to expand...
LOL @chickenman you slay me :p
 
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kuz

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#36
jumpincactus said:
LOL @chickenman you slay me :p
Click to expand...
I thought it was some stupid smart ass bs. Didnt say anything because he might have just been trying to say he is free, unhindered from restrictive laws. idk.
 
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kuz

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#37
muir said:
I am a week or so away from my certificate of occupancy on a tiny 30 light grow and retail store. New 5 year lease. Turnkey ready. Will be taking offers. If the right one comes along, I'm out and off to Fiji for a year.
Click to expand...
Good luck! I would like to buy you a beer and talk about the process someday. First local shop just opened, took them forever, its been over a year, close to two I think, and they still arent growing. I hear sales are good.

I will get the retail license if there is enough money left.
 
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Texas Kid

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#38
I'm with Grit, its not really a grey area at all in Colorado. If you are buying an existing license or applying for a new one you will have to comply with local and state requirements which means you will have to apply with the state and be completely vetted criminally and financially before moving forward. The MED does not take call in appointments anymore, you have to send an email and they will take up to 30+ days to respond and usually around 2+ months for your first meeting with them. You will need everything in place prior to that meeting..location, lease, build out, state and local license fees, local approvals, etc...all has to be done before you even start the process with the MED. Just did a rec OPC transfer and it was over 180 days just to transfer the license with the state. So if you do not get a license it doesn't matter you still have to spend all the time and money first before you even know. Depending on local Business and Excise tax requirements there will be fees and filing requirements associated with that and can be anywhere from $2500-$10,000 and then your local zoning and specific use approval also has to be approved. Built out spaces that are zoned correctly and ready to go can sell for $150-$160 bucks per square foot and rent for $45-$55 a square foot so get ready for a little pain there. If you are looking for what they call a "vanilla box" or open shell to lease, it can be anywhere from $12-$18 bucks a sq.ft. to rent a small space and them another $75-$100 a sq.ft. to buildout with partition walls, HVAC, electrical, and plumbing..all of which must be permitted, inspected, and CO'd. Storage building grows are considered collective grows and those are not allowed very many places anymore. It is probably easier to find a 10,000+ sq.ft. place that zones correctly than a a 1000sq.ft. spot because your going to need an F1 occupancy building with an Industrial or light industrial zoning suitable for plant husbandry..not that they are not out there but small facilities are usually not zone for heavy or light industrial uses. Water becomes a serious issue as well, especially if there are alot local rules and regs for use and disposal and in drought hit areas farmers and cattle boys can be real big hurdles to getting grows approved. All in all your probably looking at close to $50,000 in state requirements and fees, $20-50,000 in attorney fees, and another $150-$200,000 in building leases and buildout for 1000sq.ft. All doable for sure but you have to be ready for the expenses as soon as they come up and then be ready to wait at least year or so before you see the first dollar in revenue so you are self financing the operation out of pocket on top of all the start up expenses.

As a real world example, I am working on a 4800sq.ft. spot that the guy wants $750,000 for the building with 600 amps of power, I will have another $500-600,000 in build out expense to get it just the way I want it and even moving 2 existing licenses (one for the store and one for the grow) I already own it will be 6-8 months fighting with the state to get it all approved and green lighted to operate and then another 120-160 days before I can see the first dollar in revenue and for the first 120 or so days I will have to buy product from myself at another one of my grow ops at fair market price just to have product on the shelf until the grow starts to product.

There is alot of wholesale out there for $1200-$1600 and very few buyers out there for product at $2000-$2200 and the smaller your grow op is the more cost per unit you are going to have to cover. 30-60 light operations have a hard time competing with 1000-5000 light operations, the economy of scale gets really real, really fast..

Again all doable though, just not for the faint at heart or underfunded
 
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kuz

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#39
Thanks for the reply Texas Kid.
Thats a lot of risk, doing the build out before they will even talk to you. wtf.

Just curious, how do you bring the first plants in, do they have to be a certain size, can you bring in a mother plant and clone it. Could you buy a bunch of 5 foot plants and flip them right away?

Is a collective grow possible? I get the economy of scale, but its a new industry, lots of possible opportunity before everything shakes out. I just want to grow more plants, legally. lol.
 
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Texas Kid

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#40
They make start up as painful as humanly possible...you can only transfer/buy in plants from another MED licensed OPC grow or MMC that sells licensed clones, those clones can not be any bigger than 8" x 8" and in nothing bigger than a 2" rockwool cube or small solo cup. No moms can be transferred in at all. No teens at all unless its under 8" x 8". You can start seeds but technically they must be seeds from a licensed MED producer but that is kind of a grey area when it gets right down to it. There is really no way to throw anything right into flower, you are going to have to veg in order to get plants big enough to flower and also veg to get plants big enough to take cuts off of. At best you looking at 6-8 weeks before you even have the chance at flipping a flower room to 12/12 and then another 90 days before you can harvest, trim, bag, and cure. Realistically your looking at 6 months from your state license becomes active till you can pull down any in house production. If you do decide to open a REC store you can start buying wholesale product on the open market day one but you would be working off of resale margins instead of selling in house production and that can be a tougher business model sometimes.

They have pretty much made collective grows illegal unless you go ahead and get licensed up by the MED.

All unlicensed extractions is now a Class 2 felony, even for personal use..
 
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Replies 52
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Started Jun 29, 2015
Latest post Sep 14, 2015
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Forum Medical Club

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