Tommy Dobczyk breaks down a $1 million land deal: 700 acres for $1 million, with 70 acres of cannabis projected to generate $100 million annually. He argues the high-margin cannabis operation subsidizes the rest of the property, letting 10% of the land cover 90% of costs.
Chapters
Are you doing deals like this? $1 million for 700 acres, and he's wanting to have 70 acres of the 700 is going to be used for cultivation of cannabis. And so the numbers on that cultivation of 70 acres turns out to be somewhere around $100 million a year. So when you understand that, yeah, it's a risky business, right? And, and all of that. Well, so was Jack Daniel's back in the 1940s. So there's a lot of evidence that shows risky businesses doesn't mean that you necessarily need to lose money, right? If it's gonna make a, a, a net ton of money, great. We got a net ton of money that's there. We grow a bunch of stuff that doesn't make money using the money coming from the, the stuff that makes money. So if we have, if we have 90% of our land operation costs covered by 10% of the property, that's the goal.