Some of you are more familiar than I am in this department, but I was approached to invest in purchasing and running dispensary license. It is a "pre-ICO" license which means they are not targeted to be shut down by recently passed ordinances and I'm just doing some due diligence. How shady/risky is this business in general? I hear stories and I imagine that it being somewhat of a black market business, there are inherent risks with street gangs/organized crime? True or not? Trying also to figure out how to be a ghost when running this, but the thing is we were discussing is that it may be hard to do so while hiring people and getting things up and running. I'm leaning against it, it was pitched as being easy money but I'm wary about the personal risk factors. Wondering what the economics of it are. I saw this: http://www.mirror.co.uk/news/weird-news/four-charged-abducting-medical-marijuana-2712268 blah. The guy I was going to partner with on this was downplaying the shady aspects of this business, but I know its probably full of these shady scumbags.
I think it might be a good initial investment, but poor mid to long term. Also, in other states I read they get robbed so much they can no longer get insurance. That's real bad for investors.
i think he used too. anyways idk how good of a long-term investment it would be. Weed should be legal in California in the next election or two, no?
Was thinking a 3 year window. I figure they won't be around in 5 years. The investment is quite low while projected revenues are very lucrative. I need to verify the sheet I was given, the money isn't really the problem as the other ripples that are associated with the business. I don't know if I could deal with family fallout though. Potential partner is having the same problem...those willing to do it arent reliable and the reliable ones have too much going to get involved in the biz. I'm envisioning the dinner scene in Boiler Room where the dad is throwing poker chips at his son. It has been suggested to hide behind a middle man, but in reality that is impossible. hoop fam
The guy owns 3 licenses and runs a dispensary already. He is franchising out basically allowing us the use of the license if we give him a percentage of revenue. So he does nothing, keeps the license and then makes XX amount each month. My potential partner (I'm likely out though) wanted a coinvestor as well as someone to run everything so its always monitored.
I don't know if that would be a business I would like to get in. There are soooo many variables that you must take into consideration. 1.) It is still a federal crime to distribute and posses marijuana. 2.) There are some shady fucks that supply you with Herb. The good guys say "Fuck you!" to the dispensaries because they won't take anything less than $3,600 for their choice supply. 3.) You cannot make profit, so your income is based on operating salary; which is a qualified earning. Basically, the fair market value of the position you hold.
There is your answer right there. Dont do it. Medical MJ is not easy money it still needs to be ran like a real business plus extra security measures. Also if you don't trust your operating business partner to be responsible then there is a good chance you will loose money and cost you family relationships, no matter how good the busienss is going.
Yeah. Officially turned down. Too much risk and startup costs will be more than they were projectiNG hoop fam
