Will the marijuana industry go up in smoke in 2016? 3 new threats to Pot
The marijuana industry is on fire and not just generating smoke, but substantial profit and tax revenue for many states. For example, according to recent indications from the Colorado Department of revenue marijuana will provide over 86.7 million in tax revenue (over 100 million a month in sales for recreation and medical). Throughout the country marijuana is a multibillion dollar business that could be in Jeopardy.
- Will 2016 continue these trends or are “smoke clouds” on the horizon?
- What are the three areas to watch in the coming year?
- How will presidential politics influence the industry?
- Will the banking issues be resolved in the coming year?
There are three major areas to watch in the coming year: banking, lawsuits, and presidential politics. Each of these three areas has the potential to send the industry into a tailspin. Living and working in Colorado, one of the first states to legalize recreational marijuana, I have seen first hand the challenges facing the industry. The same issues facing Colorado also impacts the industry in every other state with either legal or recreational sales.
Throughout Colorado and the country billions of dollars of real estate investments could be at risk if the industry were to go into a tailspin. The marijuana industry occupies substantial industrial (indoor growing) and retail locations and employ thousands. If the three issues are not resolved (or resolved poorly) all the investment dollars in the industry could go up in smoke in a heartbeat.
Regardless of where you sit in the marijuana debate, these are real issues impacting not only the industry directly but the entire financial sector. I wrote an article for the CO biz Magazine discussing these topics and more.
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in the Colorado Real Estate Journal, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, Illinois, and Florida. They are recognized as the leader in hard money lending / private lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all they need is their simple one page application (no upfront fees or other games).