Why You Should Invest in Cannabis Business Loans

Why You Should Invest in Cannabis Business Loans

By | 2017-09-28T18:44:25+00:00 September 28th, 2017|Hard Money Blogs|Comments Off on Why You Should Invest in Cannabis Business Loans

Why should you invest in cannabis business loans? Now that the legalization of cannabis and marijuana products has spread across the United States, the need of financing of cannabis operations is higher than ever. Marijuana industry distributers, growers, and manufacturers need financing for equipment and real estate for dispensaries, facilities, warehouses, and stores. This financing is difficult to come by for these businesses because banks generally don’t finance these types of businesses because they’re not legal on a federal level.

However, since hard money lenders are not overseen by Federal regulatory agencies, they are more flexible and able to provide financing for these business owners. Because commercial loans are hard to come by for cannabis distributers and operators, they are more willing to pay higher interest rates.

Legal recreational and medical cannabis industry has brought billions of dollars into Colorado, Washington, and Oregon and more and more states are following suit. Each year, states are taking small steps to support one of the fastest growing industries in the United States, such as decriminalizing marijuana, even in non-legal states. Over half of the states have legalized medical marijuana and six have legalized recreational marijuana.

This emerging industry is providing countless opportunities to invest and hard money lenders are able to provide financing to successful growers seeking to purchase land or real estate to help with their grow. Hard money lenders lenders generally like to lend money to growers and manufacturers of cannabis products. Investors who provide financing for these types of loans will yield high returns.

If you’re not yet in the marijuana industry but are looking for opportunities to invest in the industry, there are a number of investment opportunities. You can contact our specialists at HML Investments and we will help you to navigate the process so you can start making money!

About the Author:

Yanni Raz is The Founder and CEO of HML Investments, with over 15 years in the real estate and hard money lending industry, Yanni is an expert in real estate investing, trust deed investments and more.