With more and more states legalizing marijuana for recreational and medicinal use, the cannabis industry is exploding. Learn how to get in on this burgeoning industry with Colorado Cannabis Business Loans.
Today, marijuana is legal for recreational use in nine states and is legal for medicinal use in 30 states, including Colorado. If you're looking to get into the business, there are a few steps you can take first.
- Find out if your county or city is currently allowing applications for licenses. Because the government is trying to control the number of new cannabis dispensaries that pop up, some cities and counties limit the licenses they award.
- Make a corporate structure for your new marijuana business. Build a corporate structure that's compliant with the state's regulations.
- Have a solid business plan. Do your research and come up with a business plan that includes projections and pro forma financials.
- Apply for all the necessary licenses. Keep in mind that the application fee can be in the thousands of dollars and that you may have to show proof that you have at least $150,000 in a financial institution.
- Contract cultivators and growers. Or, if you're proficient, you can grow your own.
Getting Funding for a Cannabis Business
Starting a cannabis business isn't cheap. There are a wide variety of upfront costs, including application fees, rent, and utilities for your storefront, and advertising to make people aware of your business. Plus, as we detailed above, your state may require you to have $150,000 in a bank just to apply.
So where do you get funding for a cannabis business? Some banks may be willing to help, but they're usually pretty averse to risk, and a cannabis business is riskier than most because it walks a line in terms of legality.
Another option is a hard money Colorado Cannabis Business Loan. Hard money is much easier to qualify for than a bank loan. There's no begging, jumping through hoops, or having your entire history dug up. Interest rates can be higher and the terms can be shorter, but there are also fewer fees and you can get the money in a matter of a week or two.
Cannabis Loans in Colorado
Need a Cannabis Business Loan in Colorado? We have extensive experience in both the lending industry and the marijuana industry, so we are in a unique position to help prospective cannabis business owners succeed. Give us a call today and we can talk about the details!
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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