investing in marijuana
Investment Tips

Investing in Marijuana : Pro’s & Cons

June 24, 2016

investing in marijuana

In today’s investment climate, investors are often pleased to discover that it is possible to invest in many kinds of possible assets. People are also pleasantly pleased to discover that it is possible to think outside the box more easily than ever and consider investments that might otherwise escape their notice in some way. This is very much true for investments that are slightly outside of the mainstream such as marijuana. An investment in this kind of plant has benefits of generating a decent passive income as well as possible downfalls. Anyone who is considering the possibility of placing their hard earned cash in this commodity should be well aware of both the possible rewards and the potential drawbacks.

The Legal Aspect

Perhaps the most important consideration in any such investment is the legality of the investment. Marijuana sales are governed by a complex set of laws that vary greatly from state to state and may even vary from one community to the next. Any one who is going to buy such plants needs to understand how such laws may apply to them in some way should they decide they want to buy or sell such plants. This is imperative in order to avoid potential legal consequences that may arise should they decide to sell them. When a buyer has an understanding of such laws, this will help them fully invest in marijuana properly without worrying in any way.

Helping People

Many people are delighted to find out they can earn a great deal of money from buying and selling marijuana. Marijuana is a valued commodity in certain areas where it is legal. People have found that marijuana can be efficacious in helping to relieve pain that may be recurrent from many kinds of medical conditions. The supplier who can offer such help is one who can earn money and feel that they are doing something good for humanity at the same time. An investor may realize that they have been able to help people who might otherwise find it hard to function and engage in important daily activities. Many patients are very grateful for the opportunity to purchase a product they know will work for them and help them feel much better. Sellers will also find that it is easy to sell such items to a highly willing audience. Many buyers are happy to have access to a source they know is reliable and can provide them with high quality items they can easily use.

Easy To Grow

It can be very easy to grow marijuana under the right conditions. If a grower knows how to provide the right conditions for the growth of the plants, they will often find it only takes a few hours of work each week for them to keep the plants they are growing in excellent shape. The conditions that are required to grow marijuana are not expensive, making it a low capital investment that does not require much money to start. This is true of investors who may only have a bit of understanding. They will find it easy to access all they need to know from books and even via an online source. An expert is often willing to provide expert advice of what it takes to grow such items for a small consultation price.

Potential Criminal Penalties

However, while growing a few marijuana plants and selling the resulting product can be quite lucrative, it can also be highly illegal. Having even a small amount of marijuana on one’s person can be grounds for an arrest in many states. Transporting marijuana from a place where it is not legal to a place where it is not can also be grounds for problems for the seller. In many municipalities in the United States, a seller may face serious problems as a result that can include heavy fines as well as a potential prison term. The investor needs to be well aware of exactly what rules govern the buying and selling of this substance before they begin to invest. They need to be aware of this issue before any investment begins.

Awareness At All Times

Anyone who is considering this form of investment needs to be cautious before they start. Doing so can be highly lucrative but it may also result in various criminal penalties that are not possible with other kinds of investments. A buyer and seller should be well aware of the potential problems that they may face should they engage in this form of investment. When the buyer is able to take such precautions, they may find that investing in marijuana is just right for their needs and wants. The rewards of such careful consideration can yield a rate of return on any investment that will easily beat the market and provide the investor with lots of cash.

Lisa Patterson is an investment consultant. She enjoys finding innovative ways to add to her own portfolio and her articles focus on strategies that require less initial outlay.