Cannabis Real Estate Loans
Cannabis real estate or real estate/construction combination loan requests are sharply rising in the U.S. and Canadian markets. HEF Finance saw a 400% increase in real estate loans in 2020 alone. The industry continues to grow after proving that cannabis is a recession resistant product with steadily rising demand. To meet that demand, cultivators, extraction labs, testing labs, and dispensaries are more often than not expanding to obtain greater profitability and win the race to become a well-established brand or service. HEF has underwritten loans in most states in the U.S. and various provinces in Canada. HEF has underwritten loans for indoor grow operations, light depravation/greenhouse cultivation facility construction and acquisition, dispensary acquisition and build out, outdoor hemp and cannabis marijuana farms, testing labs, buildings for extraction lab construction and acquisition, and many more. Recently, we’ve seen an increased number of requests for the following loan types:
- Oklahoma Indoor Cannabis Marijuana real estate and construction loans
- California Cannabis real estate loans for greenhouse and indoor cultivation operations
- Massachusetts cannabis real estate loans for cultivation and dispensary acquisition
- Michigan cannabis real estate loans for indoor cultivation facilities and retail dispensaries
- Colorado cannabis real estate loans for expanding existing cultivation facilities
- Illinois startup cannabis real estate loans for companies building out indoor facilities for cultivation
- Cash out refinance cannabis real estate loans for Canadian publicly traded companies seeking liquidity
- Nevada cannabis real estate loans for the acquisition of dispensaries and cultivation operation expansion
HEF has underwritten or closed cannabis real estate loans in nearly every state in the U.S... Working with hundreds privately held and publicly traded companies in the cannabis industry at various stages of the business cycle, from startup to highly profitable established operations, HEF has had the benefit of reviewing thousands of credit scenarios in the industry while having also underwritten many cannabis real estate loans. This level of experience from daily underwriting empowers HEF Finance consultants to quickly help you evaluate your borrowing power and provide realistic ranges of rate and term to execute a cannabis credit facility.
While industry profit margins have remained relatively high, so has the cost of capital. Interest rates for cannabis real estate loans can range from 9% to 17% depending on the credit scenario. This is due to regulatory risk, the risk of lending to startup companies or early stage companies, and the rapidly rising demand for capital.
Based on our experience and feedback from borrowers, working with an experienced cannabis finance company is critical when seeking debt financing. Like in many parts of this unique industry, there are “rabbit holes” everywhere. Before you embark on the journey to successfully obtaining capital for your cannabis business, read our guide to assessing cannabis finance houses and brokers, of better yet, give us a call and speak to an expert in the field of cannabis debt financing today. We offer real estate financing options in the U.S., U.S. territories, and Canada. With an in-house real estate underwriting team that processes cannabis real estate loans daily, we are built for speed and efficiency.
How to find a loan for your cannabis business?
The underserved cannabis industry, as it pertains to financial services, is a minefield to be navigated only by the intrepid and savvy. The dearth of lending options in the cannabis sector, and banking options, make it uniquely difficult to obtain debt financing. And there is no shortage of pitfalls and misleading brokers.+ CONTINUE READING
Fact or Fiction: Cannabis Equipment Leases at 5% APR
Recently, in our survey of the online content the cannabis lending industry, we found examples of claims about cannabis equipment leasing rates that made us cringe, and to be honest, chuckle. One example, was a cannabis equipment leasing web page that touted the following highlights of their cannabis equipment lease program:+ CONTINUE READING
Can I get a loan for my Cannabis Startup business
At HEF Finance, we get this question usually a few times a week. And, we always say that we have executed many loans for startups and pre-revenue companies for public and private companies in both the U.S. and Canada. That said, like all cannabis loans, the business needs certain ingredients to execute a loan successfully.+ CONTINUE READING