With marijuana legalization spreading across the US like a contact high, many might dream of growing their own ganja—and wonder if it’s an easy way to make money. For a reality check, we talked to Greg Tannor, a commercial real estate broker who bought a cannabis farm in Walden, NY, in 2022, where he started cultivating his product, FlowerHouse. Here’s why his venture turned into a bad trip, and what he hopes to teach others.
What inspired you to buy a cannabis farm? “I’ve had experience with marijuana since the age of 18 on the consumption side. My mother was a cancer survivor; I used to roll her joints. I also lost two cousins to cannabis laced with fentanyl, so I wanted to be able to offer consumers a safe product. After 25 years as a commercial real estate broker, in 2020, I got a phone call about cannabis becoming legal in New York State. Since it was in the middle of Covid and I wasn’t doing much besides learning how to bake, I started doing research.”
How did you find a farm to buy? “I found a 40-acre farm in Walden, NY, that usually grew Christmas trees and houseplants. The first time I saw it, I drove up a dirt road on a hill and saw all the greenhouses. It was a beautiful sight, especially at night when the lights were on. Very peaceful. I told the owner, ‘Sell me the farm. Cannabis is coming.’ I purchased the farm for $5 million. Since cannabis financing is challenging, we put down 50%, and the property’s owner operated as the bank. We applied for a cultivation license, and once we got it in February 2022, we put plants in the ground.”
What challenges did you face? “You’re dealing with a live plant, and anytime you deal with a live object, it’s going to be risky, time-consuming, and expensive. You grow, then you harvest, then you dry, trim, and cure, before it finally goes into the jar. You put money out there for 15 months and have to wait for your return. Heating in the winter and electricity in the summer cost $20K, $30K, $40K a month. There’s infrastructure, irrigation, upgrades to the property, and around 35 staffers. It costs several million to run per year.”
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How much money did the farm make? “In the first year of being fully operational, it made about $4 million in revenue. But it was costing more to run than it was bringing in. The money was not used appropriately and was getting burned through too quickly. Plus, my partner was creating a toxic environment, yelling, screaming, finger-pointing. People were scared, which is not what you’d expect. You’d think there’d be music playing, dancing in the fields, everyone happy.”
How did you turn the farm around? “In January 2024, my toxic partner was terminated, and I stepped in and began running FlowerHouse myself. After diving into the books and bringing in the right resources, we doubled our revenue for 2024 to $8 million. But even then, it was too expensive to operate and too risky, so we gave back the keys to the farm in January 2024. I did it to save the company.”
Since you sold the farm, what are you focused on now? “I’ve partnered with another farm to grow our FlowerHouse strains for us. We purchase flower from our partners that’s already grown, trimmed, and cured, and basically it goes through a final quality control with us, then we do the packaging, processing, wholesale, and distribution. This business model de-risks the company. Today, we are in over 100 stores throughout the states.”
What advice do you have for others who dream about starting a cannabis farm? “Wake up. What people see on the surface is, ‘Oh, that looks so fun, you’re selling weed!’ But this is a business, and it’s hard. There’s competition, so many moving parts. Packaging prices in China just went up. You have to figure out how to stay ahead. My wife saw it from day one, what I’ve been through, mentally, emotionally, financially. What I’d recommend if this is your dream is to start with state regulations and grow a plant or two in your backyard and see what it takes, how it comes out. Next, visit a farm and watch a real farm grow. We’re happy to bring people to facilities to show people what it really takes.”