Marijuana Growers Buying Colorado Property with Cash
With the legalization of Marijuana in Colorado, investors are flocking to the state to stake their claim. San Luis Valley is actually called the Silicon Valley for Marijuana. However, growers are finding it difficult to purchase land with their profits. Since the Federal government still considers Marijuana illegal, growers need to buy with cash.
Title companies cannot take their cash because it violates Federal Laws. The grower cannot bring cash to closing because an affidavit needs to be signed that they procurred it legally. According to whom? The Feds of course.
Furthermore, most banks will not let them put deposit cash because of the FDIC laws. And, with the complexities of real estate transactions, cash deals are dicey.
So, the majority of growers keep their profits as cash. When they put earnest money or down payments on real estate, they generally go to several banks with cash and get cashier's checks for however much the bank will allow.
Start up companies are beginning to pop up to house grower's funds but today, it is just starting. Ask us tomorrow!