Cannabis Investment Opportunity
You can become a partner in the business, and part owner of...
The business - Natures Meds Farm LLC
The Land - 34 acres with 3 tax lots
The Oregon Recreational Cannabis License
I'm looking for partners in Natures Meds Farm, LLC.
This business is already a very nearly licensed Cannabis farm.
If we hurry, the license could be in place and we could be running by planting season June 1, 2017.
The whole property is 34+ acres of flat land and beautiful forest located in the heart of Oregon's wine country. The sale price is 200K with 20K down (already paid 12,000), 1K per month payments and the owner is willing to carry the loan at 5%.
Lane electric power is not installed but available for $10K per 400amp curcuit with no limit on how many circuits you can get. So if we decide to make an indoor grow space, the power is easy to get. The property has 3 seperate tax lots. A branch of the Siuslaw River flows through one tax lot and the combination of roads, river, mountains and a 500 yard long gated driveway creates a setting of extreme privacy. Two of the lots have County approved home sites with septic approval. Lane county is extremely friendly and helpful for cannabis farmers and the rural community surrounding the farm has a long history of being the heart of Oregon's cannabis culture.
The garden space is aproximately 1.5 acres in size which is easily large enough for a Tier I garden this year. This big meadow is oriented East/West with great sun exposure - and it could be expanded to accomodate a greenhouse, production facility, larger outdoor space, etc. There is a lot of space.
LUCS - County Land Use Compatibility Statement - Done!
Security plan - Approved!
License application - Nearly finished - can be completed before planting season if the budget comes together. All we need to do is put your name in all the proper blanks and resubmit the paperwork. Assuming you pass the background check, we're all good.
I've done the legwork but I need investment capital to make this project fly.
We already have... Assets, Capital and Experience
$12,000 Money already applied to land purchase
$2500 40' X 8' X 9' Shipping container
$2500 12' X 24' tool storage and work shed in garden area
$5000 Security system
$1500 Irrigation tools, pipes, tanks, fittings
$4500 3000 gallon water storage tank with electric and gas pumps
$1000 Drying space - partially completed
$4000 Propane Power Generator and tanks
$3000 T posts and plant bed materials
$500 Drying racks
$7500 Land clearing labor
$3500 Construction materials
$2000 Misc Farm Tools
I am also contributing a year of time and work already done roughly along these topic lines...
Researching land in the area
Talking with Realtors
Meeting with Realtors and Landowners
Walking prospective properties
Many meetings with the Realtor and the Landowner discussing this particular piece of land.
Attending OLCC meetings about licensing
Studying OLCC rules and regulations about licensing
Attending classes required to get certified to use the Cannabis Tracking System Software.
Working for weeks on formatting maps, and all the other little details necessary to get the LUCS and all the other paperwork required by the OLCC to get the license.
Clearing the land - please don't underestimate the difficulty of that portion of the project.
Providing and purchasing all the tools and equipment necessary to actually manage the farm and run the irrigation etc.
I also bring 8 years of professional Cannabis farming experience both indoors and out. This experience is invaluable not only in the growing of plants but also in knowing which strains to choose for the local climate, how to make sure they finish in the short season, how to find experienced trimmers, and how to manage the logistics of harvesting HUGE amounts of Cannabis in a very short window of time. Cannabis is a unique plant and it takes years of experience to know when to cut a plant at the height of maturity, and how to dry the buds in a manner that preserves the quality and avoids the hazards of mold. I also know the market, how to access sales contacts, what products sell, and how to produce finished products that are ready to hit the shelves. These finished products are more sought after and they can nearly double our profit margin. My experience dates back to OMMP days when I ran a delivery service before there were even any dispensaries in Oregon. I've studied the OLCC rules extensively while attending all possible seminars and meetings as the laws evolved. I have studied the Cannabis Tracking System software, taken all the classes, and passed the necessary final exams.
My contribution to this project is this combination of physical assets, industry experience, already having an outstanding piece of extremely private real estate that has county approval AND a seller willing to carry the loan, as well as all the time, work and money that I have invested in learning the art of growing Cannabis in Oregon.
The Farm Needs Your capital
The following is a rough summary of what we need in order to make this farm really fly.
$1,000 Security System Completion - labor
$1,000 Plumbing new drip system
$5,000 Garden... sprayers, T Posts, trellis materials
$1,500 Hoop house and Lights to grow young plants in spring.
$2000 Dry Room Completion
$2500 Dehumidifiers Racks for drying room
$15,000 Electricical Transformer & distribution lines around property
$30,000 Imported Peat/Coco for raised beds
$20,000 Labor for daily tasks through the summer
$10,000 Water delivery of EWEB water
$3,000 Plant Starts $10/ea
$1,500 Fertilizer, Fungicide, Pesticide
$1500 Tractor/Dozer rental
$3,800 Rec License Fee
$15,000 Down payment to purchase the land
$10,000 monthly payments during startup
Estimated Needed = $120,000
How does this investment work?
Your contribution to the farm will create your percentage of the business equity in a fluid model called the "Slicing Pie" model of equity calculation. You can read the big sumary in this document. The short sumary is that your % ownership is calculated as... your % of the total contribution used to create the business. Your contribution could be in the form of work, cash, equipment, rent... basically any value that you add to the business creates your share.
|Garden Plan: My goal for this season is to create raised beds in long rows which I have found to be far more efficient than isolated pots when growing large numbers of plants. The Tier 1 rec license allows for 20,000 sq ft which I plan to fill by making long rows. If each plant is 8' wide, we can have 2500' of rows. The planting medium will be Peat/Coco/Pumice with organic amendments and Endomycorrhizae pre mixed. Each bed will be 4' wide by 16" deep and built on a mound of topsoil. Beneficial bacteria will be used extensively to prevent soil pathogenic organisms. Regular preventive foliar sprays of bacteria and neem will also be used to prevent problems with insects, Powdery Mildew and Botrytus. The land has never had harmful pesticides or chemicals used on it so the garden is prime for organic certification.
Pro Forma Prediction
what does the Potential Income look like?
In 2015 I grew 63 plants outdoors and got 180 lbs (2.8lbs per plant) with prices averaging $1700/lb in dispensaries.
That creates a gross of $306,000, or $4857 per plant gross. If we extrapolate those number to fit this garden and our license capacity we can make some predictions of where that would go.
Assuming first of all that we grow our plants a little smaller and closer together to account for streamlining the farming process in the way I would like to do it, I’m going to predict that we will produce 1.8 lbs per plant.
Assuming also that the drop in prices will place our realistic market price for raw buds/flower at $1500.
1.8 lbs x 560 plants = 1000 pounds X $1500 = $1,500,000 Gross
Assuming a garden with 560 plants... here are three outcome predictions for the first year.
1) The worst case... If we average 0.75 lbs X 560 plants = 420 lbs of flower. If we sell it at the lowest possible price of $800 per pound we would have a GROSS income of $336,000 not counting income from the small buds.
2) The most likely... 1.8 lbs X 560 plants = 1000 lbs of flower. If we sell it at the most likely price of $1500 per pound we would have a GROSS income of $1,500,000 not counting income from the small buds.
3) The best case scenario... (this is assuming we already have a processing facility with packaging and labeling equipment)
Selling flower ONLY - if we were to average 2.5 lbs X 560 plants = 1400 lbs of flower @$1800/lb = $2.5 million per year!
Selling flower AND Tinctures - If we sell 1/2 of our flower crop @ $1800 = 1.25 million. Then we create packaged finished products from the remaining flower and approximately 300 lbs of small bud material (1000lbs total) (1000 X $5000 = 5 million) we could have a GROSS income of over $6 million per year.
Here's a look at the whole picture of what might happen in year 2 (and long term) with our most likely scenario...
Starting with... $1,500,000 Gross
- $15,000 feed/fert/IPM products
- $60,000 Manager/Master Grower salary
- $90,000 garden laborer (45K x2) wages
- $90,000 production laborer (45K x2) wages
- $ 5,000 Testing for mold and contaminants
- $50,000 Sales & Delivery driver
- %30 taxes
$822,500 approximate annual NET profit
As an investor, you will be a Member of the LLC with ownership and full voting rights on decisions that concern the business. As the founding member, I will be the tie breaker if we have a disagreement. However, once you get to know me you will find that I am a very reasonable person. No big ego here. And I'm all about making decisions based on the simple idea, "what's going to make us the most money with the least risk." If you can show me that your way is better than mine, I'm very flexible.
If you choose to work on the farm, working Members of the LLC will be designated as "Managers" and will be paid a reasonable hourly wage to work on the farm just like any other laborer.
It is NOT required that Investor/Members work on the farm.
Silent investors are welcome and as a Member/Manager you are also welcome to work part time whenever it fits your schedule.
This is a rare opportunity to be a part of a very peaceful, outdoor, hard working lifestyle that is also potentially very lucrative for everyone involved.
Now is the time to plant a seed - literally - in the growing Cannabis Industry.
And this is your GOLDEN opportunity to get into the game on the ground floor.
Reasons for investing in Natures Meds right now...
1. Despite fears... Jeff Sessions is now saying that he will leave the Cole Memo basically as it is because it is physically impossible for the federal government to step in and start policing the states for pot. The legalization movement is simply too far along to stop it now. This is mostly because in the old days it was the state police that did most of the legwork on Cannabis cases but now that it is legal in the states, those same police will not be allowed to participate in legal action against any person that is operating legally within state law. There simply are not enough federal officers to take over that job even if they wanted to do so.
Halleluja! Oregon just passed laws (HB4094) that will allow Cannabis businesses to have normal bank accounts.
2. Currently Rec Dispensaries can ONLY purchase product from licensed Rec growers. This creates a solid demand for product. If you've driven down any street in Oregon lately you may have noticed that there are more pot shops than coffee shops. Those shops need high quality Cannabis.
3. The OLCC and OMMP programs are currently drafting new legislation that would do away with the OMMP program as an independent entity. The new laws will still allow anyone to grow their 4 plants for home use. But OMMP growers will NOT be allowed to sell product to ANY retail (medical or rec). The new law will allow all Rec licensed growers to host up to 24 medical card patients, with 6 plants per patient, paying the patient up to 2lbs per year, and then selling the remainder to BOTH the Rec and the Medical dispensaries. This puts the tracking and product testing and pesticide safety in the hands of professional growers. This change allows us to have 144 more plants for a cost of 24-48lbs of product. But the most valuable part of this changeover works like this... currently every Oregonian with a medical card can grow 6 plants, which is a Large amount of weed but let's say 6 lbs to be conservative. There are 67,000 OMMP card holders in the state as of 2017. That equals roughly 400,000 lbs of weed that is grown by non-professional farmers who often do it in spare time and don't really mind if the price drops to $500-$800 per pound because this is NOT their full time job, it's mostly just a hobby that brings in some cash. But that lowball price is Killing the professional grower that has higher overhead, required testing, reams and reams of red tape and a million hoops to jump through. This change in the law will take the hobby grower out of the marketplace, allowing prices to stabilize at a place that supports professional farms.
4. Now is the perfect time to build branded product lines. The gardens that will thrive in the coming years will not be showing up at a dispensary with a turkey bag full of pot. They will show up with pre-rolled joints, edibles, alcohol extracted concentrates, tinctures, topicals etc. Basically the summer will be spent growing and the winter will be spent extracting and packaging and labeling products that are ready to hit the shelves. When this happens the garden will be only one aspect of a full production line and the business as a whole will be far more likely to survive the "Gold Rush" days.
Q&A (Questions I've gotten from investors)
What is the chance of the license being denied? I asked this to my OLCC contact person and he told me that he sees no problem with my application as it is submitted so far. The only remaining issue might be with the new investor not being able to pass the background check. At this point all we need is to put your name on the paperwork, get you fingerprinted for a background check, sign the papers to purchase the land, install the electricity, plug in the cameras, and have the OLCC come out for our inspection. It could happen in a month.
I've also discussed this issue with my realtor and he assures me that we can word the land purchase with a contingency that the license must be approved before the deal becomes final. This way we are not stuck with a piece of land and no ability to make the farm on it. This allows us to get the deal down on paper before we start improving the property.
What happens if the business fails for some reason? Nobody wants to predict doom, but you gotta look a the possibilities. In this case, at the very least we will have a piece of land to sell which makes the possibility of completely losing your investment practically zero. The land was worth $200K even before the cannabis land rush hit and I've got that price locked in for now. In the current market, and with the County approving the Land Use Compatability Statement for the Cannabis Farm, plus the improvements I've made, the land alone is easily worth $400K and probably more. So right there, as soon as we sign the contract for the property, we have an instant profit that could possibly double our money. If the business dies, we can sell it and each get a portion of the proceeds according to the portion we own in the business. So the possibility of you losing your investment is incredibly low right off the bat. And when we spend the capital that you bring to the business, almost all of it will be in infrastructure improvements that will quickly raise the value of the land even more.
Why is outdoor farming a better business model than indoor?
Indoor farming requires a lot of overhead and electricity. You basically have to recreate the same environment in a warehouse, that Mother Nature creates for free outdoors - and anyone who has ever tried it knows that indoor environments will NEVER beat the outdoor environment. As more and more indoor and outdoor farms show up on the scene to supply the very limited number of Oregon Cannabis users, (remember there is no interstate traffic yet) there will be and actually, there already is, an excess of Cannabis product in the state. That will get worse in the coming years and the prices will continue to drop. Indoor farmers produce FAR less product and they have FAR higher costs associated with that production. Obviously they will suffer the most as prices drop. Eventually it may come to the point that indoor gardens simply cannot compete with outdoor gardens. Outdoors you can produce very near the same level of quality product, at a fraction of the cost.
Outdoor (Sun Grown) Cannabis is also becoming more sought after due to the natural influences of sun, wind, rain, soil quality, etc (terroir) on the product that all add up to create a better smell and taste in the same way outdoor, organic Tomatoes taste better than greenhouse Tomatoes. Customers do see the difference and they are quickly coming to see that good outdoor Cannabis is preferable to Indoor.
How will Natures Meds compete with other farms and businesses in the Cannabis industry? The state is not going to place limits on the number of businesses that can get into the Cannabis industry, preferring instead to let the market solve the crowding issue through the Darwinian "Survival of the Fittest" method. This will create a situation of over production in the next several years. It is my opinion that the difference between the farms that fly and those that crash will be found in one thing, and that is the ability to create a "brand" name and make the entire crop into pre tested, labeled, finished products that are ready to go on the shelf. Farmers that show up at a dispensary with a turkey bag full of buds will be the first to die out.
How will you manage to keep people from stealing the crop? There is only a 3 week window in the fall when the crop is useable and prime for being stolen. During that time we will have people and dogs sleeping in tents out in the garden. We will employ passive Infra red motion detectors that send signals back to a hand held monitor. We also employ trip wires attached to small battery powered alarms in the woods surrounding the garden and at the most likely parking places along the public road. The layout of the land also provides a substantial barrier. Between our farm field and the nearest road there is a 600 foot patch of very thick woods, blackberries, and a river. At best a person might carry out a small backpack of buds, so basically it would be impossible to perform any significan theft except by driving in on the driveway. Our driveway is 500 yards long with a gate at the entrance, a very narrow bridge in the middle and very little possibility of passing undetected. We have one neighbor with whom I have maintained a very good relationship and he thoroughly enjoys acting as the security guard on the road. Cell phone reception is available on the property, so calling that neighbor and other staff is quite easy in an emergency situation. However, police help is quite far away so we are pretty much on our own for dealing with any sort of armed intrusion. My experience is that people are extremely unlikely to raid a country farm simply because they believe that in general, country people are very likely to be armed, and probably also skilled hunters, and they have dogs.
Over the past two years I have heard countless stories of homeowners in town who had their 6 plants stolen, but only one report of a Cannabis farm that was robbed in the country. In reality, it's just a plant. So if some kid is running off with one of our plants on his back we're not going to be shooting at them. Shooting only happens in defense of our lives, not for money or property. As with all issues on the farm, we will prepare for the worst and pray it never happens.
What about water rights? The property does have water rights to irrigate the main meadow where the garden is. However, the seller did not get an easement to go across the other guy's property to get to the creek in order to extract the water. So the rights are not useable. However, the water rights are a sellable commodity and as soon as we sign on the land, we could sell the water rights to anyone downstream from our location all the way to the coast. This is a very valuable commodidty. All of this is probably a blessing in disguise. EWEB water is next day delivery and we get 3000 gallons for $250. That water is extremely pure and practically guaranteed to have no contaminants that could harm our crop. Whereas if we were drawing water out of the creek, you never know what sort of chemicals the farmers upstream might have dumped in there. So all our water is trucked in and it might cost $10-15,000 per year for a Tier 1 Garden.
Who is Glen Johnson?
The founding member and current owner of Natures Meds.
Here's a short summary of life experience... Grew up in a rural area in South Texas. Started out working as a summer Camp Counselor teaching natural science, and Archery. Lifelong hunter (although rarely these days), competitive pistol shooter, BS in Science Education from Oregon State University, 11 years as an outdoor recreation instructor and senior trip leader for the City of Eugene, ran my own business
(Aperture Photographics) for 12 years as a professional photographer traveling all over the world shooting weddings in the US, and 59 destination weddings outside the US for very wealthy brides.
I've been growing Cannabis and studying cannabis cultivation full time for the past 8 years. I rarely ever smoke Cannabis. I have lots of local connections and am well known in the local cannabis community.
I have a 15 year old son and a 10 year old daughter, a small dog and a cat. Lots of photography and computer experience in advertising and digital layout for promotional materials and packaging.
You can see my personal Facebook Page Here.
Read the business contract >>>>> NATURES MEDS LLC OPERATING AGREEMENT
If you've managed to read through al this and it still sounds interesting, I would love to hear from you.
Reply to: glen (at) naturesmeds.us OR text me at 541-729-9256
Here are a couple photos from my 2015 outdoor garden and some of my indoor gardens
NOTE: This is NOT our current location but they are all plants that I grew.
This Skywalker OG (above and below) is my baby.
I purchased this girl for $5 as a single clone back in the days when I grew in my garage.
To date, nobody I've shared the strain with has grown anything that produces more weight than this one.
Outdoor bud typically sells for less than indoor because farmers treat it like a wild thing. If you prune your plants all summer just like an indoor grower would, and then you hire hand trimmers... this is what it looks like and it will sell right there beside any indoor buds all day long.
We do have the option to create an indoor grow space on our farm and then our license could be 20,000 sq feet outside and up to 5000 sq feet indoor + 144 OMMP plants.
Here are a couple photos from my 2015 outdoor garden and some of my indoor gardens
NOTE: This is NOT our current location.
For the big HD version, click "YouTube > Settings > Quality > 1080p" Get the song on iTunes
Cannabis is NOT an FDA approved medicine. All our products are considered "Dietary Supplements" and are not claimed to diagnose, treat, cure or prevent any disease. Information About Herbs, Botanicals and Other Products — is for general health information only. This Web site is not to be used as a substitute for medical advice. Users of this Web site should not rely on the information provided here as the sole source of information for their own health problems. Any questions regarding your health should be addressed to your physician or other licensed healthcare provider.
All information and the recipes for the products on this website are Copyright Glen Johnson - Natures Meds 2015
Natures Meds is located in Eugene, Oregon.