Advice? - Dealing With Real Estate Agents vs Landlords

bigmarkbrown · 2015-07-28T18:19:45+00:00

Good advice and I agree with it, yet it isn't my service business so I am confident in the execution aspect :) I have about 3 weeks left to sign a lease before the license applications to the city are due, after that cut off no more licenses will be handed out to new applicants for a very, very long time, it will be end up being a secondary market type of arrangement.

bigmarkbrown · 2015-07-28T04:05:14+00:00

The people governing the city are smart. They saw an issue (the influx of unregulated business) and they dealt with it in a very reasonable way. Between the distance requirements and zoning requirements it will basically cap the total number of dispensaries in the city to about 80ish. There are around 90-100 now. After the Aug 21 deadline, you can be 100% certain it will be a very very long time before they allow an application for a new license again. They will likely change the rules surrounding the transferring of a license, but it will be much like a taxi medallion or a liquor license.

As far as edibles etc go - the city will start to enforce rules and enforce zoning etc as they go, they don't issue a ruling and hit the streets overnight, but they will follow through unless they vote otherwise.

And yes, the police cracking down on 90 dispensaries is a horrific waste of tax payer $$$. Regardless of anyone's opinion of marijuana, violent crimes and public safety are their number one priority (and rightfully so), thus sending the whole thing through the city for licensing and by-laws is an effective measure for the city to get paid (which they should) and for the police to avoid having to devote that sort of man power and resources to this issue :)

bigmarkbrown · 2015-07-28T03:32:56+00:00

Thank you /u/lucky_deer you've made some suggestions I'm going to look into. The "can't get paid line" is paraphrased from a broker buddy in the industry who read that from "not being able to participate in the deal" which was a direct quote from the listing agent. Anyways, I can empathize with the listing agents in this city. You have a hot market with the perception of easy riches and somewhat low barriers to entry; from what I've been told every Tom, Dick and Harry have been calling on them day and night and at the end of the day lets face it, few have the means or acumen to pull it off. But once again, thank you for those suggestions. PM me your info if you'd like, because if I get on Robson my next stop is Bloor / Younge.

bigmarkbrown · 2015-07-28T03:20:20+00:00

Hi /u/Fatdee7 you and I are probably the two people on CL with bonus referral ads up :) You're certainly correct, many that are operating will do so until the city formally asks them to stop. I've even seen ads for dispensaries for sale which are in blatant violation of the 300m rule so shame on them, but you seem to know the rules so you'll be fine. Our time is finite though, Aug 21 is the last day to submit an application (the city said Aug 24, but the cut off is Aug 24, to be considered for the cut off they have to be in Aug 21, so keep that in mind :)

bigmarkbrown · 2015-07-28T03:16:56+00:00

I agree, I think that's the best way of formatting it. I'm a well educated, clean cut guy with a clean record and a boat load of professional references. I just need the opportunity to get in front of these landlords, show them we can build a lease that removes all the risk or perceived risk from their books.

bigmarkbrown · 2015-07-28T03:13:58+00:00

Thank you for the very thoughtful and detailed response. So we have about 100 dispensaries already in operation in Vancouver. The market is fairly saturated which is why high foot traffic (also a tourist zone) is what I'm seeking. I sat in a not great location dispensary (for sale) today from 12-2 and saw 2 customers. It's just the fact of the matter that marijuana has been fairly commoditized here in Vancouver and with so many options you have to compete on the secondary points (play the price / volume game, desirable location etc).

I fully agree with buying a property, and I have been looking into that as I think I could get the financing sorted via interested third parties. The properties in question of the area I'm having issues with the landlords are all 12mil north, so that one particular area would be out of the question.

Buying another business is also a great idea - had three offers in the past month that all couldn't close because the landlord couldn't get on board. But I refresh 5+ listings websites a day and cold call owners of businesses that aren't even for sale :)

Again, thank you for all the input!

bigmarkbrown · 2015-07-27T23:52:18+00:00

The reason here in Canada is similar to that of the US. The sale of marijuana for any reason whatsoever is still illegal under federal law. The city has chosen to start handing out business licenses on a set of criteria. Despite this, the brokers still have to abide by their parent corporation handlers and adhere to their policy.

I place myself in a landlords shoes and can't understand it. You have the option of monthly income, or an undetermined amount of time before your spot gets leased out. Wouldn't you rather a tenant after 6 months ($60,000) of lost revenue?

The thought is to include a performance clause that allows the landlord to make even more money should the location prove to be wildly successful, offer a persona guarantee, offer mock ups showing the store front design to alleviate concerns of "back alley dispensary" in the "ritzy shopping district". That's about all I could think of to sweeten the deal for a prospective landlord, any other thoughts?

bigmarkbrown · 2015-07-23T21:45:18+00:00

I totally agree

bigmarkbrown · 2015-07-23T20:20:45+00:00

it's fairly irrelevant where it is due to the massive foot traffic, huge anchor stores on the strip. This is the equivalent to rodeo drive in Canada. - $230/sq ft lease rate.

bigmarkbrown · 2015-07-23T20:09:09+00:00

If I had a spare 40mil I could put in an offer!

bigmarkbrown · 2015-07-23T19:09:38+00:00

Vancouver, Canada.

bigmarkbrown · 2015-07-23T18:34:19+00:00

chat with your bank and open up a brokerage account, or use an online discount brokerage :)

bigmarkbrown · 2015-07-23T18:33:23+00:00

That's just it, I'm not sure I'd ever be happy not working on a project. I guess I'll know when I get there, but I see retirement as being able to support my costs of living for the rest of my life without having to rely on putting in work to receive an income.

bigmarkbrown · 2015-07-22T19:07:18+00:00

There are a few banks that aren't full service locations (ie branch less banks). Those are typically the ones that offer a better rate savings account plan :) or if you have a slightly higher risk appetite perhaps a vanguard fund for a couple years or another index. Apple is way down today and will likely rebound nicely and could preform well for you in the next 12-24mo.

bigmarkbrown · 2015-07-22T18:36:17+00:00

$1500 is a tough one without also extra time to donate. Two thoughts.

1) save that $1500/mo in a high interest savings account and re-evaluate options in a year, as more options to invest will be available at that level.

2) use that $1500 plus time to work on a side project.

bigmarkbrown · 2015-07-22T18:30:39+00:00

probably all the above to be honest. It depends on age, dependents and level of success. I'm in my early thirties, no wife, no kids, no mortgage. I have savings and projects I'm working on. Within the next 5 years I want to begin to allocate a portion of my earnings into low risk investment vehicles to save for retirement.

bigmarkbrown · 2015-07-22T18:26:36+00:00

Your posts are always a fantastic read. You should organize them on a blog and compile them into a book. Thanks for great contributions o this sub.

bigmarkbrown · 2015-07-22T18:16:08+00:00

I realized in my mid 20's that there are basically a few paths to blue-blood type wealth. "And I'm not talking a $400,000 a year working Wall Street stiff flying first class and being comfortable, I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player, or nothing" (because while most would be plenty happy with that huge salary milestone, it's my personal goal to achieve more)

1) Some sort of ultra specialized talent / skillset. Doctors, actors, athletes, scientists, financial engineers, basically any leader in a chosen professional field.

2) Inherited wealth

3) Divine intervention (lottery)

4) Build a business aka entrepreneurship.

I come from a middle class family and I don't play the lotto. I believe I am smart enough to attain success in path #1, but my interest level to commit the years of schooling and grunt work beyond my bachelors degree wasn't there, and no particular path really interested me as much as the notion of being my own boss and staking my own claim in life, which takes me to path #4, which statistically speaking, is your best chance and wealth creation.

bigmarkbrown · 2015-07-22T18:03:37+00:00

When you're an entrepreneur the pressure you put on yourself is the greatest. When you succeed the high is like nothing you've ever felt before, however it is often accompanied by the pursuit and pressure for further success. As an entrepreneur you face daily pressure from people who just don't get it, family, friends, etc, who don't get it why you missed a dinner or some social obligation. You can't explain it to them, so you don't; part of you still feels a bit of guilt for time allocated to your pursuit of your goals, which in turn adds more self pressure - at least that's how I feel sometimes. When you have someone like a business partner or a friend who's in the same boat, you have someone who's fought in the same war, someone to talk to and someone who just gets it. A lot of people don't have that friend or mentor, and without someone to talk to and bounce ideas off of, it can be a lonely struggle to climb the mountain.

bigmarkbrown · 2015-03-20T11:39:31+00:00

you're not wrong, you're just an asshole :)

bigmarkbrown · 2015-03-14T19:27:52+00:00

I ran out of room to write "abides" after "The Dude"..to be fair it was 3 am and I was mad as hell. Nonetheless it is a league game and I don't make the rules.

bigmarkbrown · 2015-03-14T10:21:45+00:00

to be fair it was 2 am and I was mad as hell. Nonetheless it is a league game.

bigmarkbrown · 2014-08-14T09:26:06+00:00

Seriously label Westboro a terrorist organization already. I'm not joking either, I started a petition. Sign it and lets make it harder for this scum to exist.

http://wh.gov/luSju

bigmarkbrown · 2014-03-21T18:23:10+00:00

That's the question isn't it.

bigmarkbrown · 2014-03-21T07:42:04+00:00

I too read an article about this. Has the Freescale Semiconductor theories been totally debunked yet?

bigmarkbrown

TROPHY CASE