Warehouses for Marijuana-Tenanted and Dispensary Loans
Redemperor.com Capital is pleased to announce our new program to fund acquisition or cash out refinance first-mortgage-secured loans on Colorado. Washington, California, and other legal states for . warehouses and dispensaries with marijuana tenants.
Conditions for Loans
- Lenders offering loans starting at $500,000 to $4,000,000
- Only first-position mortgages
- LTV ratios of up to 60%
- Rates of interest between 10.5 and 12%
- Lender origination fees starting at 2% to 4 %
- You can get a loan term of six months to three year with the possibility of renewal.
- Refinance and acquisition loans (including cash-out)
- Guarantees of personal integrity are required
Is a Marijuana Real Estate Loan Right for My Business?
It is not an easy decision to purchase property. However, it can be even more challenging if you are in the cannabis industry or intend to purchase property to cater to marijuana businesses looking for a lease arrangement. How can you determine if a loan for a cannabis warehouse is right to your business?
Problem is that marijuana has yet to be legalized at the federal level. Traditional lenders will not lend money to properties in the cannabis industry because they aren’t licensed to do so. It is difficult to buy properties such as warehouses or storage spaces for cannabis production or distribution, unless you have hundreds of thousands of dollars.
For the Cannabis Industry, Real Estate Loans
Red can help you find the right marijuana real estate loan to suit your needs. A warehouse facility is necessary to support your cultivation operation.
The Chance Of Receiving a Marijuana Business Loan
Real estate investors have the opportunity to purchase properties with unusually high net returns, as marijuana tenants will pay more rent for warehouses that are well-located and finished to their specifications. This opportunity is not available right now, as it is difficult for investors to access bank financing.
Redemperorcbd .com is not a loan broker, but a direct lender of private capital. We have control over the funds and make all the decisions. Redemperorcbd .com is the best source of private capital financing for marijuana-tenanted property owners. Saul Meshach our principal, and Mehrak are available to talk about our marijuana tenanted lending programs with you.
Why Choose Redemperorcbd.com For Your Marijuana Real Estate Loans
It is not easy to find the right cannabis real estate lender. But at Aplusmortgagerates.com we go the extra mile to provide the exceptional service and support that you deserve. We have a solid reputation for integrity, customer satisfaction, and nearly 50 years of financing Colorado’s private capital commercial loans.
Direct lenders have full control over funds. This means that we can make all decisions about your loan. There is no need to wait for a loan committee to decide. You don’t have to sit by and wait. Direct communication with a principle of Redemperorcbd.com is a must. Your loan will be closed and underwritten within 3-4 weeks.
We are able to offer flexible loan arrangements because of our independence. This allows us to tailor lending to each borrower’s needs. Redemperorcbd.com will provide the support and planning you need to make smart decisions about your cannabis venture.
Redemperorcbd.com Offers Appraisal Advantages for Cannabis Business Loans
Redemperorcbd.com will compute your LTV ratio if your property is valued at more than the purchase contract. Banks use either the appraised or purchase price. Redemperorcbd.com has the ability to choose which value to use.
- Redemperorcbd.com may consider a loan up to 60% of the $1,000,000 valuation of a warehouse property. This is 75% of the purchase cost.Redemperorcbd.com requires that borrowers invest at most 25% of their funds in this type investment.
- Redemperorcbd.com will use the “as finished” appraisal values to determine the LTV ratio if a borrower plans to build infrastructure. Rents for warehouses that have a significant tenant mix are much higher than those of marijuana growers. Redemperorcbd.com will therefore consider these lease rates when assessing borrowers who intend to renovate their property in order to get these higher rents. This means that financing can be made for up to 75% of total project cost (including renovation costs and purchase price). However, the borrower must still contribute 25% from their own resources to the project’s total cost.
- Redemperorcbd.com can calculate our LTV ratio if a tenant lease has a purchase option. If the lease-option price of the tenant is significantly lower than the current fair value, Redemperorcbd.com will use the current fair value appraised value. Redemperorcbd.com lending program can offer buyers who have exercised their option to buy a higher leverage. The maximum loan amount Redemperorcbd.com can provide is not to exceed 60% of the property’s appraised value. If you have previously purchased a marijuana tenanted home using minimal or no leverage, it may be advantageous to refinance your property at the current appraised value and withdraw cash. Redemperorcbd.com Capital’s marijuana property lending program was created to help owners in such situations.
Marijuana Real Estate Loan
What are Marijuana Property loans?
Banks have not been willing to open bank accounts for marijuana businesses, or even loans for marijuana real estate, in the past. Despite laws changing quickly in marijuana, there are still many differences between federal and state laws. This can lead to confusion and uncertainty which can make lenders reluctant to lend to such businesses, regardless if they are likely to be profitable.
There are other hard money lenders that will offer property loans for marijuana properties. However, they might have certain restrictions. Bridge loans can help you get your cannabis business off the ground, until you are able to obtain longer-term financing.
Entrepreneurs looking to capitalize on the growing marijuana industry have a few options. One is to get loans to purchase properties for tenants in the cannabis-industry. Some investors prefer to manage properties for businesses involved in the cannabis industry, rather than directly being involved in its growth, processing or sale.
This can be quite lucrative, as marijuana tenants will often pay more than normal rent if they have the right property. They may also be willing to make concessions for their specific needs. It can take time for bank financing to be approved, particularly in the case of marijuana real estate loans. However, a bridge loan can give you time to execute your plans and start to see profit. This will make you more appealing to banks who may not have the resources to finance you long-term.
Benefits of a Cannabis Warehouse loan
Although it isn’t always easy to get a loan for marijuana real estate, there are ways to speed up your approval. This type of lending is asset-based and can be quickly repaid with the help of marijuana businesses.
A marijuana tenant might have plans to improve the property’s infrastructure and finish, which could increase the rent. This can be a better deal than what other non-marijuana tenants would pay. The possibility of a “as finished” property valuation can increase your loan-to-value ratio and improve your financing before tenants even move in to the property. Real estate investors can benefit from marijuana property loans in many ways, but the most beneficial are speed and the possibility of higher lending.
Who can apply for Marijuana Real Estate loans?
Many lenders, including Colorado bridge lenders may not be willing to risk on the uncertain nature of marijuana businesses. There are more options if you are looking for dispensary loans or cannabis warehouse loans to invest in properties that can be leased to marijuana tenants. These are asset-based loans so it is important to find the right properties. Personal guarantees may also be required