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How Marijuana Legalization May Influence Cannabis Real Estate Funding

How Marijuana Legalization May Influence Cannabis Real Estate Funding

Cannabis legalization has boomed in the last few years and with this most recent election cycle, recreational marijuana legalization cannabis in particular—along with medicinal—has become legal in even more states. One of the primary obstacles to opening a cannabis business is securing funding, particularly when it comes to obtaining real estate. Even in locales where cannabis is legalized, there are very specific zoning regulations that dictate where cannabis businesses can open, and this is narrowed even further when you consider the different types of cannabis businesses.

Everything from growing to manufacturing and sales all might require different zoning and licensing, and this further restricts lenders' desire to provide funding. As the country opens up to broad legalization, however, we expect that obtaining cannabis real estate funding will become dramatically easier in the following ways:

Cannabis zoning will be less restrictive

There's no question that competition increases costs, and if you're vying for a specific piece of cannabis real estate with other potential cannabusinesses, that piece of property will go up in value. As it goes up, you'll naturally require more funding to be able to get it, and even for a non-cannabis business, more costs simply make it harder to open.

As zoning becomes less restrictive, more cannabis businesses can open in the same area. More real estate, lower prices—and that benefits you overall.

cannabis real estateA friendlier attitude towards cannabusiness

As legalization increases, lenders are more likely to feel comfortable providing funding for cannabis enterprises. This opens up more potential for securing business funding for cannabis real estate and the greater your success when seeking loan approval.

With that said, your best bet is still to seek a loan from a reputable cannabis lender. These financiers will be far more likely to grant you approval, and they know exactly what is necessary for a successful cannabis business, even some things you might not have considered. A cannabis lender will have a history of providing loans to businesses like yours, so you can approach the question of a loan with more confidence.

Legalization also means a rush to buy real estate

Cannabis businesses aren't the only ones looking to buy up that precious real estate as legalization expands. Investors across the board recognize that cannabusiness represents a high potential for money-making, and so they will be quick to snatch up that land to resell at a much higher price later on. Securing financing as quickly as possible will help you lock in the area you want before it's snatched up by someone else.

Cannabusiness financing has real estate solutions for you

We offer cannabis real estate funding to ensure that we can help as many businesses as possible. In addition to years of experience lending to and advising businesses like yours, we have a network of cannabis lenders ready to assist in providing funds for your business.

We offer competitive rates, starting at 8.9% (fixed), with lending ranges from $250,000-$10 million. Whatever the size of your dreams, we are here to help.

Contact us today and tell us about your ideal business and let us tell you how we can help you secure cannabis real estate funding to help make it a reality.


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Posted by Canna Business Team



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In an industry that is constantly evolving, Canna Business Financing provides business owners with a reliable source to gather the most up-to-date information. From resources to fund the growth of your business to insights on best practices to scale, look no further!

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