[Sean Cash]

Rapid has funded around 10 medical marijuana establishments over the years. One of the issues is federal taxation - the IRS doesn't allow any deduction for "cost of goods sold" for illegal products. You also have to look at how close the establishment is to a school and what the prevailing enforcement actions are at the federal and state levels to assess your risk.

Law offices and collection agencies? I wouldn't want to try to collect on those businesses. Stay away from payday lender storefronts also, they are state regulated and can be shut down by the state without notice.

Thanks for responding to this. So it looks like these deals can be done. With no COGS to deduct, it sounds like a very thin margin business. Do you need to see some sort of license or permit in the underwriting process? How do you verify that it's legitimate or enough to suffice?