If you’re like most people entering the Cannabis industry, you’ve realized getting loans is difficult as hell. Most traditional lenders don’t lend to the Cannabis industry. Big banks aren’t allowed to lend, without potentially incurring heavy penalties from the federal government. As a result, many big banks/big lenders are simply not touching the Cannabis industry. If you’re an entrepreneur, and/or real estate investor in this industry, you’re probably hitting a wall as a result.
Here’s the bottom line — you have options. Delancey Street is a private money lender, which means we’re not like the big banks who won’t lend you money. We use private money, from a pool of real estate investors we have. You ONLY deal with Delancey Street, which is what makes it simple and easy. We issue the loan directly to you.
Medical Cannabis is legal in more than half of US States
With cannabis use permitted in 30 states, and approved for recreational in 8 states, the sector is blowing up. In February, Forbes discussed that the American Cannabis industry is worth over $7 billion. In 2020, the sales would blossom to over $20 billion. With so much potential, it makes no sense for you to sit on the sidelines.
We have experience understanding real estate, and the potential issues and investment errors associated with not only real estate – but the cannabis industry as well. In order to help secure your investment, we’ll provide you with the legal and financial planning you need. Not only that, with relationships we have all over the industry, we can help you with the operations and marketing of your Cannabis retail store as well.
Cannabis Retail Store Purchase Loans
This form of financing is available depending on your business model. If you’re buying the real estate that will be used for the Cannabis retail store, then it’s much easier to give you a loan. This is because we can lend against the physical real estate itself – which is collateral. This allows us to offer lower interest rates, and secure our investment in your operation. In some alternatives, we’re willing to lend against the dispensary license itself. Regardless of the exact collateral used to secure the loan, it’s possible to get creative when it comes to financing. Because we’re not an institutional bank, we can bend rules, or make up new ways to finance you.
Creative ways to purchase a Cannabis retail store
Whether you’re a grower/supplier, or seller, you need funds for your Cannabis business. Below are some options.
Use the equity in your home – You can use a home equity loan (HEL), or a home equity line of credit. The bank won’t ask you where the money is being used since a home is being used as collateral. In addition, it’ll probably have a low interest rate. This is a simple way of getting funds, without the headaches of dealing with hard money lenders/loan sharks.
Home equity loan – This is a second loan on your home. This would be in addition to your original mortgage, and is going to be smaller than the original loan but with a higher interest rate. You will receive the funds from the HEL loan as a lump sum – which you can use to open the Cannabis business. HEL loans have a fixed rate. You can then pay it off over a period of time.
Home equity line of credit – This is a line of credit. You can take as much money as you need up to a credit limit. What’s great is you only have to pay interest on the amount you take out. This is what makes a HELOC a flexible financing option for marijuana business owners. They have variable interest rates, so payments can fluctuate.
You can only get a HEL or HELOC if you have sufficient equity in the property. If you owe more than the home is worth – you won’t be eligible for a HEL/HELOC.
Use credit cards – If you think you can get your business off the ground quickly and start turning a profit, it might make sense to use your credit card. There are many credit cards that have a 0% intro rate. Many don’t charge interest for 6-12 months, which is enough time to build a business.
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