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Hemp Real Estate Investments, Inc.

HREI - Hemp Real Estate Investments, Inc
INVEST

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Time left to invest

Minimum target reached (accepting oversubscriptions)

min$10k

max$1070k

funding goal 

$10k - $1070k

funding goal 

Regulation CF

exemption used 

Regulation CF

exemption used 

$3,000,000

pre money valuation 

$300.00

min investment 

$11,064

amount committed 

29

investors 


Security Type
Shares of Common Stock
$3.00 per share

Pitch

Who are we

Hemp Real Estate Investment, Inc. is an investment vehicle used to acquire commercial real estate properties to be used for entrepreneurs in the hemp industry. The purpose is to leverage commercial properties to create appreciation by acquiring, leasing, developing, managing and selling for the purposes of maximizing investor returns. With the new legislation in Georgia and the passing of the Farm Bill, HREI believes this is a prime market for strategic commercial investments.

 

 

Farm Act of 2018

The Hemp Farming Act of 2018 was a proposed law to remove hemp (defined as cannabis with less than 0.3% THC) from Schedule I controlled substances and making it an ordinary agricultural commodity. Its provisions were incorporated in the 2018 United States farm bill that became law on December 20, 2018.

We build tangible value through hard assets (equipment) and real estate. The low-risk participation in a billion-dollar sector, and the retention and valuation growth of a hard asset that can be quickly and easily repositioned if needed. We are high growth, low risk, and legislation immune.

 

Problem

HREI has identified a gap in the marketplace for cannabis entrepreneurs. There is a need to create a resource facility for those interested in understanding the benefits and value of Hemp, CBD, Medical Marijuana. By leveraging commercial investments with a shared office concept, HREI will create a unique R&D facility within the metro Atlanta area.

 

Georgia consumers remain somewhat confused about the differences between marijuana and hemp, THC and CBD and that confusion inhibits sales. (Note: CBD comes from the hemp plant and doesn’t get you “high”).  There’s still a stigma, too, that a portion of the population associates with buying such products from a strip mall vape shop or roadside convenience store. It is also hard to spread the word about CBD products as online advertising outlets like Facebook and Google are still banning much of these marketers’ messaging. Put that all together and you can begin to understand what Georgia’s CBD entrepreneurs are up against.

 

 

What is Hemp?

Hemp, or industrial hemp, is a strain of the Cannabis sativa plant species that is grown specifically for the industrial uses of its derived products. It is one of the fastest-growing plants and was one of the first plants to be spun into usable fiber 10,000 years ago.

 

What is CBD? (Harvard Health Publishing)

Cannabidiol (CBD) has been recently covered in the media, and you may have even seen it as an add-in booster to your post-workout smoothie or morning coffee. What exactly is CBD? Why is it suddenly so popular?

 

CBD stands for cannabidiol. It is the second most prevalent of the active ingredients of cannabis (marijuana). While CBD is an essential component of medical marijuana, it is derived directly from the hemp plant, which is a cousin of the marijuana plant. While CBD is a component of marijuana (one of hundreds), by itself it does not cause a “high.” According to a report from the World Health Organization, “In humans, CBD exhibits no effects indicative of any abuse or dependence potential. To date, there is no evidence of public health-related problems associated with the use of pure CBD.”

 

Solution

Our mission is to leverage commercial properties to create appreciation by acquiring, leasing, developing, managing and selling for the purposes of maximizing investor returns. With the new legislation in Georgia and the passing of the Farm Bill, HREI believes this is a prime market for strategic commercial investments.

 

HREI will provide “state of the art” commercial real estate shared office space and R&D space for entrepreneurs in the Cannabis industry. By leveraging Atlanta as a hub for global business and the unique climate for business success, HREI will provide a unique environment for everything Cannabis. 

 

HREI will build tangible value through hard assets (equipment) and real estate. The low-risk participation in a billion-dollar sector, and the retention and valuation growth of a hard asset that can be quickly and easily repositioned if needed. We are high growth, low risk, and legislation immune. 

 

Commercial real estate in Atlanta is on an upward trend, thanks in part to an increase in trade from the nearest Savannah seaport. As a result, Atlanta is serving as one of the main hubs for new businesses. This has led to a boom in commercial real estate markets around the region. Besides being the state capital, Atlanta has also been a catalyst for economic growth by providing services such as being a major checkpoint for the distribution of goods across the country.

 

The evidence for cannabidiol health benefits

CBD has been touted for a wide variety of health issues, such as:

  • Childhood epilepsy syndromes - such as Dravet syndrome and Lennox-Gastaut syndrome (LGS), which typically don’t respond to antiseizure medications. In numerous studies, CBD was able to reduce the number of seizures, and in some cases it was able to stop them altogether. Videos of the effects of CBD on these children and their seizures are readily available on the Internet for viewing, and they are quite striking. Recently the FDA approved the first ever cannabis-derived medicine for these conditions, Epidiolex, which contains CBD.
  • Anxiety
  • Insomnia
  • Chronic Pain - CBD may offer an option for treating different types of chronic pain. A study from the European Journal of Pain showed, using an animal model, CBD applied on the skin could help lower pain and inflammation due to arthritis. Another study demonstrated the mechanism by which CBD inhibits inflammatory and neuropathic pain, two of the most difficult types of chronic pain to treat. More study in humans is needed in this area to substantiate the claims of CBD proponents about pain control.

 

Is cannabidiol safe?

Side effects of CBD include nausea, fatigue and irritability. CBD can increase the level in your blood of the blood thinner coumadin, and it can raise levels of certain other medications in your blood by the exact same mechanism that grapefruit juice does. A significant safety concern with CBD is that it is primarily marketed and sold as a supplement, not a medication. Currently, the FDA does not regulate the safety and purity of dietary supplements. So you cannot know for sure that the product you buy has active ingredients at the dose listed on the label. In addition, the product may contain other (unknown) elements. We also don’t know the most effective therapeutic dose of CBD for any particular medical condition.

 

 

Achievement & Traction

Georgia Gov. Brian Kemp has opened the state to commercial medical cannabis cultivationsigning a bill to create new business opportunities in the Peach State’s limited MMJ program.

 

The measure outlines the first opportunities for private businesses to grow and sell cannabis.

 

Georgia launched its limited MMJ program in 2015, though the cultivation, manufacture or sale of THC products was not permitted.

 

The new law keeps Georgia’s THC cap at 5% but allows for six growing licenses to be granted to private companies – two for larger organizations and four for smaller businesses.

 

The bill also:

    • Requires the plant to be grown inside.
    • Bans smoked or vaped medical marijuana.
    • Sets production licenses at $200,000 for Class 1 cultivators, which would be limited to 100,000 square feet of cultivation, and $100,000 for Class 2 cultivators, which would be limited to 50,000 square feet of cultivation.
    • Bars the Georgia Department of Agriculture from regulating marijuana cultivation.
    • Allows public universities to obtain cannabis for research purposes from “any available legal source,” not just the designated U.S. research farm at the University of Mississippi.
    • Bans physicians from owning medical marijuana cultivators or distributors.
    • Requires medical cannabis cultivators to show “significant involvement in the business by one or more minority business enterprises.”
    • Bans advertising or marketing MMJ to the public or to the state’s existing medical marijuana patients.

 

By leveraging HREI as a minority-owned business enterprise, HREI will be uniquely positioned for opportunities to grow and expand throughout the state of Georgia. 

 

Market

Georgia’s CBD Market

While cannabis laws have loosened in many U.S. states, relatively few consumers have sampled CBD products and marketing obstacles are stacked tall. Georgia’s cannabis laws are among the most restrictive in the nation; focusing only on hemp and its byproduct CBD, which can be sold only under tight constraints and through a limited number of licenses. 

 

The Hemp Industry - US

One of the goals of the 2014 Farm Bill was to generate and protect research into hemp. The 2018 Farm Bill continues this effort. Section 7605 re-extends the protections for hemp research and the conditions under which such research can and should be conducted. Further, section 7501 of the Farm Bill extends hemp research by including hemp under the Critical Agricultural Materials Act. This provision recognizes the importance, diversity, and opportunity of the plant and the products that can be derived from it, but also recognizes an important point: there is a still a lot to learn about hemp and its products from commercial and market perspectives. Yes, farmers—legal and illegal—already know a lot about this plant, but more can and should be done to make sure that hemp as an agricultural commodity remains stable.

As of June 2018, 31 states and the District of Columbia permit the medical use of cannabis in some fashion.

  • Significant industry growth in recent years and expected continued growth:
  • A shift in public opinion regarding the legalization of cannabis, especially as it relates to the medical-use of cannabis:
  • Increasing momentum toward legalization in many states, particularly for medical uses:
  • The federal government’s current relaxed enforcement posture toward cannabis-related activities

 

Commercial Real Estate in Atlanta, Georgia

Over the past few decades, commercial real estate trends around the United States have changed rapidly. With the increase in commercial growth particularly in parts of different capital cities, the prices have increased significantly. This also includes Atlanta, as the capital city of Georgia has always absorbed the effects of rapid economic growth around the region.

 

Commercial real estate in Atlanta is on an upward trend, thanks in part to an increase in trade from the nearest Savannah seaport. As a result, Atlanta is serving as one of the main hubs for new businesses. This has led to a boom in commercial real estate markets around the region. Besides being the state capital, Atlanta has also been a catalyst for economic growth by providing services such as being a major checkpoint for the distribution of goods across the country coming via the Savannah airport.

 

Further, Atlanta is in the spotlight for becoming the fastest-growing region in the nation. According to the Atlanta Regional Commission, if the growth continues at the same pace, it is likely that the city might add about 5 million more jobs by 2030.

 

The Chamblee-Tucker road in Atlanta has quickly become one of the popular hotspots for businesses in the area. Big ventures, such as Pattillo Industrial Real Estate and Parkside Partners, are coming together to build commercial properties across the road. This might mean that an uplift in the prices of commercial real estate around the area is highly likely.

 

But perhaps, there are more reasons for growth for commercial real estate in Atlanta. As per recent demographics, Atlanta is on the way to becoming one of the country’s top tech hubs. With thriving businesses around the neighborhoods and communities, the demand for office space has skyrocketed.

 

Over the years, the office rent in Atlanta increased gradually to cater to the strong demand from businesses. With a strong economy around the region, the Atlanta commercial market withstood the factors against it.

 

Competition

HREI has a competitive advantage in accessing commercial real estate opportunities that would lend well to the Hemp/CBD/Cannabis industry. Through strategic partnerships, HREI ties into off-market opportunities with competitive advantages. Some of the key players in the current marketplace are as follows: 

 

CBRE has a strong investment management program and is a leader in the metro Atlanta marketplace. Additional competition includes Ackerman Co, who specializes in commercial and medical real estate investments, including lite industrial and raw commercial land.  

 

Colliers International is another major player in the marketplace. Founded in 1967 and comprised of over 300 real estate advisers, managers and staff, Colliers International provides effective solutions to management and commercial real estate challenges. 

 

Though we are a new player in this space, our intent is to leverage strong relationships, partner with larger firms and access unique opportunities.  

 

Business Model

Our business model has 6 core components: 

  • Acquisition of Commercial Real Estate 
  • Long Term Leasing Opportunities and Property Management 
  • Leverage Minority Participation 
  • Strategic Alignment with University Partners
  • Hemp Education & Research 
  • Hemp Accessories, Products, and Services

 

Acquisition of Commercial Real Estate 

This is a very stable and predictable revenue stream as we will create a shared office space and have multiple tenants. 

 

Long Term Leasing Opportunities and Property Management 

Very traditional hold strategy. Our long-term strategy is to look at additional commercial acquisitions and build a portfolio of high-value assets and potentially position the company for a buy-out from a public company.

 

Leverage Minority Participation 

Georgia requires medical cannabis cultivators to show “significant involvement in the business by one or more minority business enterprises.” By leveraging HREI as a minority-owned business enterprise, HREI will be uniquely positioned for growth and opportunities. 

 

Strategic Alignment with University Partners

In Georgia, two universities have obtained the licenses for R&D. HREI intends to leverage its minority status to partner with one of the two universities to explore possibilities.

 

Hemp Accessories, Products, and Services

Our founder has a unique background in product development with extensive relationships throughout China. HREI will leverage products to increase cash flow and create a unique brand in the marketplace. 

 

Georgia has a social equity component based on a state requirement that there be 20% “participation” from women, minorities, and veterans for medical marijuana businesses. 

 

HREI will join The Minority Cannabis Business Association (MCBA), the first 501(c)(6) not for profit business league created specifically to progress the cannabis industry by increasing diversity. Their mission is to create equal access for cannabis businesses and promote economic empowerment for communities of color by creating policy considerations, social programming, and outreach initiatives to achieve equity for the communities most affected by the war on drugs.



Team

TARIQ KHAN, CEO

Tariq is a man of many talents. He specializes in taking a vision and finding the right resources, funding, and partnerships. He turns that idea into a profitable and sustainable corporate venture through sound strategy development. He instinctively understands the threads of opportunities and threats that could plague a business venture. He brings those strengths and opportunities together while transparently communicating the potential weaknesses of a business venture. He is an inspirational leader who draws the attention and respect of manufacturers, label executives, and capital venturists alike. Respected as a credible source in decision making, he identifies strategic financial and operational partners, as well as establish governance boundaries. He earns a seat at the table wherever he serves. 

 

Previously, as CEO of TKD Worldwide, LLC a privately held global retail branding and sourcing company Tariq oversaw all domestic and international operations for the multi-million dollar organizations. He believes in the power of walking an idea from creation to implementation. He specializes in design, sourcing, sales, development, manufacturing, and branding. He has developed equitable and scalable relationships with financial partners in China, Italy, Japan, and Korea. Over the course of his 25 years of experience, he has been part of influential teams that have gone on to do over $15 million in sales. 

 

Tariq’s network expands and has developed across industry lines. He has created equitable and influential partnerships with government officials as he understands policy drives economic development. He is currently partnering with Senator Zara Karinshak to help her develop her campaign team to maximize her opportunities for winning a congress seat. He has also developed long-term relationships with Tyrone Brooks Jr, Governor Kemp Office, and Mayor Keisha Lance Bottoms to name a few of his political relationships that stretch nationwide. 

 

Previously, he served as a consultant to Arista Records, So So Def, and BMG Distribution. He led the business development for the hip hop division including working with Notorious B.I.G., Tupac, and Wu-Tang Clan. 

 

Over the past several years Tariq has expanded his reach to the cannabis and hemp industry. As the CEO of HMRI, Inc. (Hemp & Marijuana, Real Estate & Investment). He understands the secret formula for a sustainable and scalable enterprise to flourish. He partners with growers, investors, processors, and land acquisitionists to create and develop successful full-scale operations. 

 

The Cannabis industry is one of today’s trending investment markets and is quickly becoming saturated. Tariq works with investors to create profitable returns by leveraging the power of untapped market strategies and roads for revenue within a saturated industry. 

 

No matter the industry Tariq is committed to dedication, accountability, and return on investment. 

 

 

Use of Funds

Updates


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Q&A


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Derwin Wallace
Derwin Wallace - Investor2 months ago
Have you looked at increasing awareness and exposure for your capital raise via Cannabis Investor Magazine, HempCBD Investor Magazine, and CannaReal Estate Magazine?

Documents

Start-up Valuation View Download
Offering Statement View Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Use of Proceeds
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We will retain broad discretion in the allocation of the net proceeds from this Offering, reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise and could utilize the proceeds in ways that do not necessarily improve our results of operations or enhance the value of our Common Stock. Additionally, the Company may from time to time need to raise more capital to address future needs that we may not have anticipated as of the date of this Offering Circular.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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