Legalized Marijuana and the Denver Real Estate Market

Legalized Marijuana and the Denver Real Estate Market

📰 Ask the Colorado Dream House Team 📉

Welcome everyone to today’s episode with Dan Polimino!

Today’s episode is focused on the Denver real estate market and how legalized marijuana has been influencing it. 

All reported sales were not necessarily listed or sold by the broker and are intended only to show trends in the area or shall separately identify the broker’s own sales activity. 

Full Transcript: 00:01 Hi everyone and welcome today’s show of Ask the Colorado Dream House Team. I’m your host Dan Polimino coming to you live from Denver, Colorado. Happy Thursday everybody. Well, if you’re new to the show, this is everything that is about real estate. We answer your questions and this information that we give out here every Tuesday and Thursday afternoon is good for wherever you are in the country. If you’re looking to buy, sell, or invest in real estate, this information comes from years and years and thousands of transactions, so take it and use it for your particular strategy wherever you are across the country. And again, thanks for joining us. You’re always welcome to leave a question or comment here on facebook. Sometimes we use them on the show or you can give us a call at seven to zero, four, four, six, six, three to five or team at Colorado Dream House Dot com. We would love to hear from you and of course if you’re right here in Denver and we can help you buy, sell, or invest in real estate, we would be happy to do so. 01:01 Our earliest be happy to help you. Uh, talk about two things that, uh, we like to accomplish each show, number one, we like to give you some market information, we call it news you can use and we like to answer your questions and today it’s all about marijuana, you know, as I travel around the country and I was just out in California for the Keller Williams annual convention. I always get the question. So how is it, you know, in the state, how is it in marijuana bill, I keep hearing all of these things. And then some of them are actually serious questions. Like, has marijuana really affected your real estate market? And if so, how? So a couple of things. A friend of mine, Alex [inaudible] who is a lender with new American funding actually sent an email out today that was talking about the dangers of having marijuana, marijuana plants or any type of grow in your house if you’re thinking about selling it. 01:57 And he basically said if you’re house is under contract and the appraiser goes out in, detects anything that he suspects is a grocery shop, if he sees marijuana plants on premise, anything like that. And the deal is w put, because if he indicates in his appraisal report that there’s marijuana plants in the house or suspecting growing of marijuana plants in the house, the deal is over Fannie Mae, Freddie Mac, Fha, va, no one will fund on that deal. Now we can go into a lot of reasons why they won’t fund on that deal. And then some of you may be saying, well, what’s Fannie Mae? Freddie Mac, va, Fha. So how this works is when you go out and get a loan, the majority of the loans, whoever you go to, Bill Smith, lord local mortgage lender, a Tom Jones local mortgage lender, when they originate your loan, in most cases they are that loan in the secondary market. 03:02 That loan usually gets bought up by a government backed agency called Fannie Mae or Freddie Mac. They buy the majority of the mortgages in this country, so it doesn’t matter where they originated from. They usually end up at Fannie Mae, Freddie Mac, Fha or Va. And these government backed agencies are going to listen very closely to the appraiser. And if the appraiser indicates that he thinks that marijuana on the premises was grown on the premises or seasoned marijuana plants, they are not going forward with that loan. That deal is done. Ok. So what’s the short answer to that? Don’t grow marijuana in your house. I think that’s the news you can use today. Let’s get to the questions. Dear Colorado dream house team, and this is a marijuana theme today. So what issues might a buyer have if they suspect marijuana was grown in the house or the house was used for grocery shop? 04:01 Well, let’s start with and you know the obvious like does the house smell like marijuana? Because that’s not an easy smell to get rid of. Like does your drywall and does the paint and did everything in the house soak up that smell. If in fact it was smoked there, let’s just say it was used as it grows. Shop. Part of what you’re going to want to do and your inspection is find out. Many times when people use it as a grocery shop, they have altered the plumbing and they’ve probably put in additional plumbing and ran some plumbing into some places that shouldn’t have plumbing. All in an effort to get water to the plants. Many times if they’ve used their basement is a grow shop. They’ve altered the electrical right, because now they’ve got to get high powered grow lights in there and that means they’ve probably messed around with the electrical panel and or the breakers and the question. 04:51 Was any of this done to code and what safety issues might we have? And then of course there’s mold, right? When you pour water all over the place in your basement, there’s a good chance some of that water can get loose and if it does get loose, did mold grow or is the presence of mold or the start of mold spores happening anywhere in the house? My advice is if you walk into a house and you really love it, but you think it was used for gross-up, just turn around and walk back out. All right, dear Colorado dream house team. Do you think marijuana has helped or boosted the local real estate market? Listen, the Colorado dream house team, we sell almost a hundred homes a year and I can’t tell you that in the last three or four years we have ever, ever represented anybody that came here a for marijuana or b, has a marijuana business and wants to spend their money on real estate. 05:50 So in the however many years it’s been legal here, I don’t think in the three, four or 500 we’ve done in the last few years, we’ve represented anybody in the real estate business or somebody who told us they came to Colorado specifically for marijuana. So I don’t think it’s had a major impact on the residential real estate market. Has it had an impact on commercial real estate? You bet. Absolutely. It’s had an impact in commercial real estate. Everything from your locAl pot shop that has taken over an old abandoned building on the corner to a people who have bought major warehouses all throughout denver. I mean with serious square-footage, I’m talking like 400,000 square feet of growing space. Right? And they’ve come in and they have revamped the whole old warehouse that was probably abandoned and they’ve turned it into a grow a grow industry shop. So yeah, it’s impacted commercial significantly. 06:48 dear Colorado dream house team. Do you think marijuana has had any positive impacts on the local economy? You know, hard to say. I mean the state of Colorado kept telling us that they were gonna, you know, accumulate all of this tax money, right? That all of the marijuana, sales, medical and recreational, we’re all going to be taxed quite heavily in the coffers were going to be full. And I’ve heard estimates of what the amount of money that the state of Colorado has taken in and it’s big, but let’s just say that has happened. The be part of that equation was that they said they were going to spend that money on schools and roads and improvement projects, infrastructure and educational stuff. I haven’t seen any of that happen. I haven’t seen anything being spent on roads or schools or educational product, pro projects. So if they’re collecting a big sum of money in taxes, I have no idea what they’re doing with it and you certainly don’t see it out there on the street. 07:49 Just my take. Somebody else might have another opinion. well that’s today’s questions. Thanks for being with us. Maybe you didn’t want to know all that you wanted to know about marijuana in real estate, but we gave it to you anyway because we get a lot of those questions. Hey, don’t forget about our 2:50 marketing guarantee. The spring, summer selling season is coming up, right? We’re about 30 days away from all the homes coming on the market and all the buyers coming into the market. If you are thinking about selling, now is the time to talk with us and we’ve got what we call our [inaudible] marketing guarantee. It simply goes like this. If you’re thinking about selling your house, interview the Colorado dream house team, and then interview our competition and take a look at our various marketing plans. If our competition’s marketing is better than ours, you can hire them to sell your home and we’ll give you 250 bucks. Sounds great. More information on our website. Go to Colorado dream house.com forward slash 2:50. That’s this week. Show everybody have a great weekend and we’ll see you again on tuesday.

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