Investing in marijuana stocks has already created countless millionaires, but some of the best stocks are just now starting to grow. That means there's still an excellent opportunity to build wealth with the cannabis real estate boom - gains over 100%, in fact.
The National Institute for Cannabis Investors (NICI) reports that by 2025 the legal cannabis market is expected to skyrocket in value from $55 billion to $146 billion.
Several of the top pot stocks have already registered massive gains in recent years. Canopy Growth Corp. (NYSE: CGC) has jumped over 1,000% from its beginnings on the Toronto Stock Exchange five years ago, and Aurora Cannabis Inc. (NYSE: ACB) is up over 450% since it listed on the same exchange in 2017.
But these weed stocks are already known for their wild success, while other cannabis stocks with great upside fly under the radar.
We're talking about marijuana stocks in the real estate sector. These are companies that lease or own properties used for legal cannabis operations. Since there are more legal hoops involved in growing, processing, and selling marijuana, this is a specialized market.
A majority of these companies trade on the over-the-counter market, so there is higher risk but also greater opportunity for returns. Here are three of the top marijuana stocks to buy if you want to profit from cannabis real estate. One of them could see a price jump as high as 300%.
Top Marijuana Stocks, No. 3: MJ Holdings Inc.
MJ Holdings Inc. (OTC: MJNE) is a Nevada-based real estate holding company whose focus is delivering real estate management services for the marijuana industry.
The company also owns land and produces its own products under the name Highland Brothers. It has been acquiring land at a rapid pace and plans to triple its cannabis production by 2020.
MJ has yet to report revenue, since it is said to have begun generating revenue in Q4 2018, but it is hard at work reducing operational expenses - in fact, it reduced operating expenses by 70% last year.
It also bought back 20 million common shares last month. This was a good sign demonstrating the shareholders had faith in the company's future. MJ was able to re-sell some of those for $5.5 million.
Paris Balaouras, CEO of MJ Holdings, said the company would use some of the proceeds to build a new facility in Las Vegas.
So this is a stock to watch - though it's too early for any outstanding price targets or revenue projections - because the company has been making some strong front office moves. These could prove critical depending on how quickly the legal cannabis wave takes hold.
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MJ Holdings currently trades at $0.80 per share with a $59.6 million market cap.
But it's not nearly as promising as this next stock, which is already up 150% for 2019 and projected to climb even higher...
Top Marijuana Stocks, No. 2: Two Rivers Water & Farming Co.
Two Rivers Water & Farming Co. (OTC: TURV) is a Colorado-based company that deals with water rights and water management issues.
It is also now involved in the marijuana market through the acquisition of hemp-based businesses. Water is scarce in the area of Southwest Colorado, where the company also has ownership of the Cucharas Reservoir.
So TURV has its hand in cannabis and water - two booming industries. With a market cap of $17.6 million, it currently trades at $0.50 per share.
The price has already gone up more than 150% for 2019, but it could add even more. Some analysts expect it to reach $0.63 this year.
In April Two Rivers reported net profits of over $3 million. This could grow over the next few years, since it looks like the company is trying to reduce operating costs, even with the new cannabis purchases. Operating expenses were reduced by about 30%, from $9.7 million to $6.5 million from 2017 to 2018. So this is a stable marijuana stock to watch, with still more upside in its future.
But this next real estate marijuana stock is our best pick - it's a favorite of NICI.
It trades on the NYSE, and the price has doubled in the last year.
But a trusted analyst says this stock could still go up 209%...
The Best Marijuana Real Estate Stock for Building Wealth
Innovative Industrial Properties Inc. (NYSE: IIPR) is the stock we're talking about, which is operated as a real estate investment trust (REIT).
IIPR provides a simple solution to raising capital. This REIT purchases the properties and leases them back to the facilities, which gives the business the capital required to fund operations. Because these businesses are in a bind, IIPR can also charge slightly higher rates for its services than the typical REIT.
Money Morning Director of Cannabis Investing Research Greg Miller, who is the head of NICI, reports that a shocking 15% is earned by this REIT on its cannabis real estate investments. This is up to triple what a typical landlord yields from commercial real estate. And because it's structured as a REIT, the rules require that 90% of the income be returned directly to investors as dividends.
According to Miller, IIPR has roughly $130 million sitting on its books that can go toward new investments, which will boost earnings even further.
From its most recent report, revenue jumped an incredible 111% over the same time period last year. There was also a 344% increase in adjusted funds from operations.
Last October was the first time NICI alerted readers about IIPR. At that time, shares were trading just north of $40 per share. Now it is trading at just over $81 per share, meaning it has more than doubled in only six months.
Even if you missed this chance six months ago, you certainly aren't shut out from earning some cash now.
Miller states that this REIT has the potential to reach $250 per share within a year, which would be a 209% profit.
The dividend yield is currently 2.25%, but this can also soar since it is contingent on the REIT's income. In Q1 of 2019 alone, the dividend went up 29% from the prior quarter, and it beat the same period last year by 80%.
According to Miller, Innovative Industrial is one of the fastest-growing REITs, and today's share price could seem cheap when another dividend increase is announced.
Did You See John Boehner's SHOCKING Marijuana Prediction?
At the American Cannabis Summit - the first-ever nationwide event for cannabis investors - former Speaker of the House John Boehner revealed why he's going ALL-IN on marijuana... and exactly how ordinary Americans can make a fortune from this hundred-billion-dollar industry. To see a special rebroadcast of this historic event, click here.