Cannabis Real Estate Financing
- Cannabis businesses can leaver their assets to obtain capital even if cashflow is slow.
- Apply today to unlock working capital that supports your goals without restrictions
- Accessing capital through cannabis real estate loans can help you manage unexpected expenses.
Take advantage of an 85% approval rate - act now!
What is a Cannabis Real Estate Financing?
A cannabis real estate loan or cannabis asset-based loan is secured by assets instead of emphasizing cash flow. This is typically real estate or whatever assets a business has on its balance sheet. The lender will typically use collateral which can be quickly and easily liquidated. Assets can also be accounts receivables, equipment, land, crop, purchase orders and inventory. Cannabis asset backed loans secured by collateral, are most often structured as term loans and revolving lines of credit.
Cannabis Real Estate Financing Details
6% - 15%
1-30 Years Ammortization
As Fast As 2 weeks
$150K - $200M
Cannabis Real Estate Financing Pros vs Cons
PROS
Lending Based on As Completed Cannabis Value
Credit & Revenue are NOT the Main Deciding Factor
- Suitable for a Wide Range of Business Purposes
CONS
May Require an Appraisal and Upfront Due Diligence Costs
Can Require Collateral or Personal Guarantee
Loans Are Based on the Asset Value and Not Cash Flow
How do Cannabis Real Estate Loans work?
A cannabis real estate loan allows operators to leverage their commercial real estate assets to get financing options you typically would not be able to get from traditional banks or lenders. Due to the exponential growth of the cannabis industry, the need for financing cannabis properties has increased drastically. Whether you are a cannabis grower, manufacturer, dispensary, distributor or just a real estate owner – there is a financing product for you within our marketplace.
There are 3 ways to utilize cannabis real estate financing for your business.Â
Conventional Asset Based Loan (Real Estate Value):Â LTV based on the as-is real estate appraisal value
Cannabis Real Estate Loan (Cannabis Value):Â LTV based on the as-completed cannabis value
Sale Leaseback:Â Investors purchases the cannabis property and lease it back to the cannabis operator
Who Qualifies for a Cannabis Real Estate Financing?
Would your Cannabis Related Business (CRB) or Marijuana Related Business (MRB) be eligible for a cannabis real estate loan?
If your business owns collateral or assets with value, you have decent credit and you don’t mind leveraging your assets, then marijuana real estate financing might be the best option for you.
Many cannabis real estate loan providers tend to have high eligibility standards, however when it comes to a CRB or MRB – not all lenders accept this industry because it’s still illegal at the federal level. But with Upwise Capital most Cannabis businesses shouldn’t have a problem qualifying – call us today to tell us about your assets @ (646) 837-5522.
Cannabis Real Estate Financing Requirements
Valued over $250K
over 600+
Received 65% LTV
None
* Note: These cannabis real estate financing requirements are based on previous Upwise customers and is just an average.
Joint Ventures: Unlocking Potential with Cannabis Real Estate Financing Flexibility.
What does a Cannabis Real Estate Loan Cost?
You should know how much the cost of capital will cost you no matter what type of financing you’re applying for.
Let’s take a look at a cost example.
Example of a Cannabis Real Estate / Asset Backed Loan / Cannabis Collateral Loan
Let’s say you have a commercial property that you operate your cannabis business out of, that is worth approximately $1.1 Million.
In most cases, the lender will require you to get an appraisal done to determine the value of your property. Â
Lets say the properties appraised value was determined to be $1 Million. In this scenario, Upwise will be able to lend 80% LTV based on the appraised value of the property. Meaning the loan size will be $800k based on the appraised value on the asset. However, we also lend based on cannabis value, which could be much higher than $1 Million.
The term length will determine the monthly payment and amortization schedule. Payments can be interest only, principle and interest, deferred, and an interest reserve may be required.
Consider other fees associated with asset based loans as well. These fees include but may not be limited to appraisal fees, site survey fees, legal fees, escrow fees, origination fees, packaging fees, prepayment fees, and others.
Don’t overlook fees on your loan offer—be sure to factor any and all small fees you might have to pay in order to understand the true cost of your asset based loan.
In order to understand your loan completely, make sure to ask Upwise for an amortization schedule. All fees associated with the proposal will be transparently laid out for each borrower in a term sheet. For more information, please call (646) 837-5522 to speak with an Upwise Real Estate Financing Specialist.Â
Apply for a Cannabis Real Estate Loan Now.
- Cannabis businesses can leaver their assets to obtain capital even if cashflow is slow.
- Apply today to unlock working capital that supports your goals without restrictions
- Accessing capital through cannabis real estate loans can help you manage unexpected expenses.
Stay ahead of the curve - get access today!
Documents You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Credit Score
You may also be requested to provide the following for larger dollar amounts over $100K:
Balance Sheet
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
Cannabis real estate financing has emerged as a game-changing solution for businesses operating in the rapidly evolving cannabis industry. As state laws continue to permit medical and recreational use, cannabis entrepreneurs face unique challenges in securing traditional funding due to federal prohibition and the cash-intensive nature of the business. However, Upwise recognizes the specialized needs of the cannabis market and is at the forefront of pioneering innovative financing solutions tailored to fuel your growth.
Our cannabis real estate financing options provide the capital necessary to acquire or construct cultivation facilities, dispensaries, and processing centers. By leveraging your real estate assets, you can access funds to purchase new equipment, upgrade existing infrastructure, expand into new markets, or cover bridge loans while awaiting licensing approval. This strategic approach to financing allows you to build a strong foundation for your cannabis business, ensuring you have the resources to scale your operations and seize opportunities in this dynamic industry.
Uses for a Cannabis Real Estate Financing
- Hiring and training:Â Recruit and train top talent to ensure exceptional customer service, compliance with regulations, and smooth business operations.
- Facility Expansion: Utilize cannabis real estate financing to acquire additional square footage, construct new buildings, or modify existing structures to increase cultivation
- Ancillary Business Ventures: Allocate funds to establish or invest in ancillary businesses that support the cannabis industry, such as testing laboratories
- Research and development:Â Allocate funds for product development, testing, and innovation to stay ahead of industry trends, improve product quality, and meet evolving consumer preferences.
- Construction and Expansion: Leverage cannabis real estate financing to fund the construction of new buildings, cultivation facilities, or greenhouses.
- Energy Efficiency Upgrades: Invest in energy-efficient lighting, HVAC systems, or renewable energy sources to reduce operational costs
Benefits of a Cannabis Real Estate Loans
Flexibility
Cannabis real estate loans offer unparalleled flexibility, allowing borrowers to access funds tailored to their specific needs. Lenders make the final decision on the loan amount, but the approved credit limit represents the total funds available to the borrower. The borrower has the freedom to use as much or as little of the credit limit as needed, without affecting the interest rate.
This flexibility enables cannabis businesses to adjust their spending and repayment according to their unique circumstances and financial capacity. By having control over the borrowed amount, businesses can manage their interest expenses more effectively and make informed decisions based on their risk tolerance.
Revenue Based
Cannabis real estate loans can be structured as revenue-based financing, where the repayment is tied to a percentage of the business’s future monthly revenue. This innovative financing model provides cannabis entrepreneurs with access to capital while aligning repayment with their cash flow, making it an attractive option for businesses in the cannabis industry.
Specialized Expertise
Cannabis real estate lenders bring specialized expertise to the table, with a deep understanding of the unique challenges and opportunities within the cannabis industry. By working with these experienced lenders, cannabis businesses gain access to tailored financing solutions that address their specific needs and growth objectives.
These lenders possess knowledge of the regulatory landscape, market trends, and financial complexities of the cannabis sector. They provide valuable guidance and support throughout the loan process, ensuring that cannabis businesses receive financing that is structured to maximize their potential for success while minimizing potential risks.
Cannabis Real Estate Financing
Why Choose Cannabis Real Estate Financing?
Choosing cannabis real estate financing offers a multitude of benefits for businesses operating in the cannabis industry. These specialized lenders bring industry-specific expertise, understanding the unique challenges, regulations, and opportunities within the sector. They provide flexible funding options, allowing businesses to access capital as needed and manage their cash flow more effectively. Cannabis real estate financing often comes with more favorable terms compared to traditional financing, including longer repayment periods, competitive interest rates, and more lenient qualification criteria.
By overcoming the banking challenges faced by the industry, this financing solution enables businesses to access the capital they need to grow and succeed. Moreover, investing in real estate through cannabis-specific financing can help businesses preserve their assets, build equity over time, and position themselves for long-term success. Partnering with cannabis real estate lenders also opens doors to strategic partnerships, valuable resources, and industry insights that can help navigate the complexities of the cannabis landscape. With the ability to scale operations efficiently and mitigate risks, choosing cannabis real estate financing empowers businesses to unlock their full potential and thrive in this dynamic and rapidly evolving industry.
Elevate Your Cannabusiness with Our Cannabis Real Estate Solutions
As the federal government continues to navigate the complex landscape surrounding cannabis, businesses in the industry face significant challenges, including money laundering concerns and limited access to traditional funding sources. However, Upwise Capital’s cannabis real estate loans provide a reliable and compliant solution for entrepreneurs seeking to secure financing for their cannabis-related properties. Despite federal prohibition, our loans offer competitive interest rates, empowering businesses to expand their purchasing power and capitalize on emerging opportunities within state law boundaries.
With increased access to capital through Upwise Capital’s cannabis real estate loans, businesses can fuel their growth, enter new markets, and navigate complex compliance requirements with confidence. Our team prioritizes due diligence to ensure the legitimacy and sustainability of our clients’ operations while empowering them to thrive in the ever-evolving cannabis industry. Discover how our cannabis real estate financing solutions can help you unlock your business’s full potential and propel you towards success in this dynamic market.
Why Upwise for Cannabis Real Estate Financing
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.
