Cannabis Real Estate Financing: Private Lending Highlight for Small to Mid-Sized Operators
When it comes to securing real estate for your cannabis company there are many types of lending resources in the market.
From traditional cannabis real estate financing lenders to private cannabis lenders and even management companies that will purchase and lease a property back to your business, it’s hard to know which is the best option for you.
What this Cannabis Lender Offers
In this article, we’re highlighting a private lender that finances cannabis related real estate—as long as the property is owned by a non-plant-touching entity.
Let me start by saying this is a pretty typical scenario since these private cannabis lenders are more real estate speculators than cannabis lenders.
Luckily, most cannabis companies hold their real estate in a different entity than the operating cannabis entity for a variety of reasons and this structure will open the door to these types of real estate lenders.
Most small to mid-sized cannabis companies we work with seek financing in the $250,000 to $1 million range. Which happens to be the sweet spot for this lending partner.
They typically look for properties that are in or near major metro areas. This doesn’t mean your location needs to be in the largest city, but there needs to be a large enough population that there is secondary demand for the real estate in the event of a borrower default and the lender needs to resell the real estate to be made whole.
Next they will want to confirm that the company that owns the building, along with the personal guarantors, can service the debt. They are able to work with some lower credits so long as the revenue of the real estate holding entity can cover expenses and the mortgage payment. Along with the guarantors generating enough income as a back stop.
Cannabis Real Estate Loan Snapshot
If you meet those qualifications, they may offer you something in the window of…
- Up to 65% LTV (on the commercial use value, capped at $1M)
- 15-year repayment term with 5-year rate adjustments
- No prepayment penalty from day one
- Rates from 10% to 13.9%
- Broker Price Opinion instead of a full appraisal
- Funding timeline: as fast as 45 days
How Does this Compare to Credit Union Cannabis Loans?
Let’s review the aspects of the program along with the context of general cannabis real estate loan options.
In terms of rates, the average rate for average risk on a real estate loan in cannabis is 12%, and it has been for at least the last seven years.
Even credit unions, the lowest rate lenders, average 8.5% to 13% rates as of mid 2025. The lower end is subject to change based on the prime treasury, but the upper end has not changed historically. So this private lender’s rates are just below and above the average.
Credit Unions also offer the longest repayment terms, offering 10-25 year options. Most private lenders tend to offer either 1 to 3 year interest only options or principal and interest for up to 10 years. So the 15 year term is a solid option.
Combine that with no prepayment penalty from day one, along with their faster funding process, and this can be a great longer term option or a fantastic short term option to secure your real estate and then transition to a longer credit union term if you are qualified.
LTVs are slightly more conservative with a cap of 65% on the commercial use value. Also very typical with most lenders unless the borrower profile is incredibly strong.
The broker price opinion will help to save money and to move the deal along faster. These can usually be done in a week or so and for a few hundred dollars. Although the cost may vary in your state.
This structure supports a faster closing timeline—often as quick as 45 days—compared to credit unions, which can take four months or more.
Is This Cannabis Real Estate Financing Program Right for You?
In short, this private cannabis property financing option is a great one for small to medium sized financing needs to purchase or refinance a commercial property.
Want to know if this cannabis real estate loan fits your project? Contact us today for a free loan profile review and next steps.
About the Author: Daryl Eames is the founder of Loanviser and the NH Cannabis Association. He has advocated for cannabis legalization in the state of New Hampshire and has deep experience in cannabis financing and cannabis merchant processing, servicing the cannabis industry since 2019.
