We get a lot of questions about the logistics of partnering with GreenZone360, and we’re happy to answer all of them. Here are a few of our frequently asked questions with answers below. If you have a question not included here, please do not hesitate to reach out! Contact us here.
When California had its gold rush, the people making all the wealth were not the people looking for the gold, they were the ones selling the shovels. So we looked for the the “golden shovels” of the cannabis industry, and we found two. Real estate and testing labs have the lowest risk and most potential because they allow you to profit from the boom without being directly involved in the business.
Our first fund was only available to accredited investors (high net worth individuals). Though it was more expensive, time consuming, and cumbersome to set up the second fund we thought it was well worth it; because it meant that now ANYbody could invest, from single moms to senior executives, and everyone in between.
Early investors are benefiting from the imbalance in the supply and demand in the market. As the supply of buildings increases the prices for them will decrease. Further, when the federal government legalizes cannabis nationwide, loans will be easier to get for developers and investors will have fewer opportunities. While opportunities may be there tomorrow, they won’t be as great as they are today.
The Federal Government established the term “accredited investor” in an effort to protect the public. While the intention was noble, the assumption that high net worth individuals are inherently more financially adept than those with less money is not always an accurate one. Nevertheless, if we want to abide by the laws, it’s important to know if you are or are not “accredited”.
The GreenZone Real Estate Fund is a Regulation D fund, is available only to accredited investors, invests strictly in real estate, and has a $50,000 minimum investment. The Alchemy Kings Fund on the other hand is a Regulation A+ fund, is available to all investors (accredited or not), invests in both real estate and testing labs, and comes with a minimum investment of only $420.
The Alchemy Kings Fund has a minimum investment of only $420. Each share is $4.20 and there is a 100 share minimum purchase. Of course, you can always purchase more than the minimum. The GreenZone Real Estate Fund has a minimum investment of $50,000.
Though each fund has a total maximum dollar figure that we can legally accept before we have to establish a new fund, the short answer is that it depends on whether or not you’re an accredited investor. If you are, there is no maximum. If you are NOT, then you’ll be capped at 10% of your net worth or annual income, whichever is greater.
There are a number of ways to qualify as an accredited investor. The two most common ways an individual will qualify is by (1) having an annual income exceeding $200,000 as a single person or $300,000 for a married couple for the past two years and the belief that you’ll attain that same threshold this year, or (2) with a net worth in excess of $1 million excluding the value of the home that you live in.
Investors in the GreenZone Real Estate Fund are required to be accredited in order to invest. However those interested in the Alchemy Kings Fund need only make $4200 per year in order to qualify.
The GreenZone Real Estate Fund allows you to exit the Fund upon the completion of each project. Active investors will always be asked if they want their initial investment returned or rolled over into the next project.
The Alchemy Kings Fund can be thought of like a private stock. You can sell a portion of your shares or all of your shares at any time, so long as there is a willing buyer. That said, because this is a private fund and not listed on a public stock exchange selling shares, while possible, may take some time.
We anticipate the DHS Triangle project to be completed in the Summer of 2019 at which time we will make our first major distribution to both funds. The GreenZone Real Estate Fund will receive one large payout at that time, while investors in the Alchemy Kings Fund can expect ongoing quarterly returns from the lab testing business as well.
Yes. You can buy more shares at anytime between now and August 2019 with the exception being that if you are a non-accredited investor you must stay within the legal threshold of 10% of your annual income or net worth as described above. As of August 2019 we will either extend the offering, create a new, albeit similar fund, or take the company public. Thus there will continue to be opportunities, though they may be limited or different.
For those involved in the GreenZone Real Estate Fund, you will first receive a disbursement check for your share of the profits. You will then be asked if you would like to receive a second check to get your initial investment back or have it applied to our next project, keeping you in the fund.
If you are in the Alchemy Kings Fund you will receive a disbursement check for your share of the profits and automatically remain in the fund for as long as you hold on to your shares. You may sell a portion or the entirety of your shares at any time so long as there is a willing buyer.
The perception that cannabis businesses are unable to bank their money is greater than the reality. There are banks, including local community banks, credit unions, and online banks that accept funds from cannabis businesses.
The bigger issue is verifying the source of funds. When dealing with electronic payments and checks it’s easier to trace the source of money. However when depositing cash it’s difficult for banks to verify that you acquired that money legally (making money laundering easier). So as the world continues to move away from cash, and if you’re able and willing to conduct your financial transactions electronically, cannabis banking becomes much easier.