12'x30'x10' grow room buildout

JoeBlow5823

Well-Known Member
It is a major investment. Depending on wholesale pricing in your region the ROI could be as quick as one crop provided you get a good one lol. If starting a commercial operation in Colorado for example it would take at least 2x as long to recoop the investment as it would in Oklahoma where wholesale prices are twice as high as in Colorado. The time to start an operation in Colorado has passed, get setup in a fresh state, grab the big bucks before the market is flooded and pricing falls. Setup with efficiency (low production cost) so that when prices do fall you are already ahead of the game.
Wholesale is high here and what we call top shelf would make everything else at the shops around me look like it came off a 4 year old mexican brick. But its over 10k just for licensing for the first year and you have to pay yearly 6 or 8k after that. And there are very few approved places you can grow- at least an hour from any big city.
 

Renfro

Well-Known Member
Wholesale is high here and what we call top shelf would make everything else at the shops around me look like it came off a 4 year old mexican brick. But its over 10k just for licensing for the first year and you have to pay yearly 6 or 8k after that. And there are very few approved places you can grow- at least an hour from any big city.
A big factor is how you structure for federal taxes. Since they don't allow deduction of overhead it is common to setup a LLC that leases the grow facility to the company that runs the grow. This way the overhead can be deducted by the parent company as it's only in the property leasing business and not the weed business. It is a good idea to get with a good accountant that is familiar with the loopholes for our industry.
 

a mongo frog

Well-Known Member
Wholesale is high here and what we call top shelf would make everything else at the shops around me look like it came off a 4 year old mexican brick. But its over 10k just for licensing for the first year and you have to pay yearly 6 or 8k after that. And there are very few approved places you can grow- at least an hour from any big city.
Maybe you should hit California With a medical rec.
 

JoeBlow5823

Well-Known Member
A big factor is how you structure for federal taxes. Since they don't allow deduction of overhead it is common to setup a LLC that leases the grow facility to the company that runs the grow. This way the overhead can be deducted by the parent company as it's only in the property leasing business and not the weed business. It is a good idea to get with a good accountant that is familiar with the loopholes for our industry.
Yeah ive got a lot going on in my life right now. This might be a great opportunity for me a couple years down the road but I'm in no condition to run a facility right now.
 

Renfro

Well-Known Member
Ive done the research. One of my favorite things to do is grow. I have no intention of turning it into a miserable job. Until they get rid of a shit load of the red tape, its not for me.
Or partner up with someone thats business minded but can't grow. Then you focus on growing and they focus on the red tape.
 
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