Facilities & real estate
Will a bank finance a cannabis property?
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The answer
Rarely, and only through a small number of state-chartered or cannabis-specific lenders. Because marijuana remains federally Schedule I, most FDIC-insured banks avoid lending against cannabis-licensed real estate entirely, leaving private cannabis lenders, seller financing and equity partners to fill the gap that conventional commercial mortgages would otherwise cover.
Range reflects C3's Michigan transaction experience, not a published dataset.
Where financing actually comes from
Cannabis-specific private lenders underwrite against the real estate and the operator's cash flow directly rather than routing through a federally regulated bank's risk framework. Our affiliate Rair Capital originates commercial and cannabis-specific debt for exactly this reason, and many transactions still rely on seller carry-back notes to bridge the gap entirely.
Go deeper
Related pages on this site
- Rair Capital
- Cannabis acquisitions & dispositions
- Why cap rates run higher
- Does rescheduling change this?
More facilities & real estate answers
- How much power does a cannabis grow facility need?
- What ceiling height do I need for an indoor cannabis grow?
- What is C1D1 and do I need it for extraction?
- What should I look for in a cannabis warehouse?
- How much does a dispensary build-out cost?
- Should I buy or lease my cannabis property?
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Next step
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Tell us the jurisdiction, licence type and building profile. We confirm the ordinance and licence position with the municipality and the CRA, then show you what survives it.
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