Los Angeles County MMJ questions

[Peter Ross]

Hello all, 

I am not in the real estate business but I am hoping I might be able to pick someone's brain. I am a California native that moved to Georgia years ago, and recently moved back. For the last 5-7 years I have been working in operations management and logistic consulting for food manufacturing and distribution chains. A lot of my friends from high school have gone on to start Medical Marijuana collectives and have been complaining to me about how difficult it is to legally set up operations in LA County. Even though the market is looking to be very healthy right now, I find it very hard to believe that they are running into so many roadblocks -- especially since (from what I have researched) it seems to completely legal. The Federal government has publicly announced that it would stop interfering with the local laws, and state and city laws permit cultivation (if done by the book).

 I decided that I would do some research online and see if I could come up with a solution. Maybe they haven't turned over every leaf? (*no pun intended*).

Basically, what I have seem to have found is that these state cultivation licenses make these non-profits (dispensaries, caregivers, collectives), 100% legitimate (given that they follow the law to the letter). I have not been able to determine for sure whether or not leasing of commercial/industrial property is legal for cultivation -- although, this is confusing because from what i hear, a lot of dispensaries grow for their patients on site. It also seems as if renting from a home owner is 100% legal as well (as long as it is not a certain distance from a school zone, and the amount of plants do not exceed the legal limit the caregiver is allowed to produce for their patients).

I could imagine why many homeowners might be a little weary of this.. Maybe they just renovated their home? Maybe they do not want this type of activity in the neighborhood? Maybe they are concerned that a potential tenant is not on top of their paperwork? 

I am sure there have to be some scenarios where a homeowner might be a little bit more open minded than others right? Even though licensing, insurance, etc would need to be onsite and registered with the state or city, it does not mean that there would be a giant sign on the front door -- the tenant would most likely want things to be more discreet than the typical landlord would -- at least that is what I am imagining.

Anyways, I thought this might be a good place to ask these questions -- I am looking forward to hearing some of your thoughts on this -- I am assuming this is something that you have dealt with.

Thanks in advance, 

P. Ross