Hard Money for Marijuana Real Estate in Colorado NOW!

The Ultimate Guide to Hard Money Lenders for Marijuana Commercial Real Estate in Colorado (2025)

Hard Money for Marijuana Real Estate in Colorado NOW! The Colorado cannabis market is a frontier of opportunity for savvy real estate investors. From state-of-the-art cultivation facilities in Pueblo to chic dispensaries in Denver’s most desirable neighborhoods, the potential for high-yield returns is undeniable. However, this lucrative landscape presents a significant hurdle: financing. Traditional banks and lenders, constrained by federal regulations, are often unwilling to touch cannabis-related real estate, leaving many investors in a lurch.

In this article:

This is where hard money lending emerges not just as an alternative, but as a strategic tool for acquisition and growth. For investors looking to move quickly and capitalize on opportunities in Colorado’s booming marijuana industry, understanding this financing route is critical. This guide provides a comprehensive overview of securing a loan for your cannabis commercial real estate (CRE) venture, highlighting the market dynamics and identifying the best hard money lenders for marijuana commercial real estate.

Why Traditional Financing Fails the Cannabis Industry

The core issue is the conflict between state and federal law. While Colorado has a mature and legal cannabis market, marijuana remains a Schedule I controlled substance at the federal level. This discrepancy creates an unacceptable level of risk for federally insured institutions like banks and credit unions. They fear potential legal repercussions, asset seizure, and losing their charters.

For a real estate investor, this translates to:

• Automatic Loan Denials: Most traditional loan applications are dead on arrival if the property is intended for cannabis use or even has a cannabis tenant.
• Called Notes: Some investors have had existing loans recalled by banks after a property was leased to a licensed cannabis business.
• Inability to Scale: Growth is stifled without access to reliable capital for acquisitions, construction, or refinancing.

This financing gap creates a powerful niche for private, asset-based lenders. Hard money lenders operate outside of these federal banking regulations, allowing them to underwrite loans based on the property’s value and potential, not the federal status of the industry it serves.

---

The Hard Money Advantage for Cannabis Real Estate Investors

Hard money loans are the lifeblood for many cannabis real estate projects. They offer a distinct set of advantages perfectly suited to the fast-paced and unique nature of the market.

The Unique Selling Proposition (USP):

• Speed of Execution: In a competitive market, the ability to close in 7-14 days is a massive advantage. While a traditional bank loan can take months, a hard money lender can provide funding quickly, allowing you to seize opportunities before competitors.
• Asset-Based Underwriting: This is the cornerstone of hard money. Lenders focus primarily on the property’s Loan-to-Value (LTV) ratio, not your personal income tax returns or W-2s. For investors whose wealth is tied up in other assets or who have complex income structures, this is a game-changer.
• Flexibility and Common Sense: Hard money lenders are entrepreneurs themselves. They understand unique situations and can structure creative loan terms that a conventional lender‘s rigid rulebook would never allow. This includes funding for acquisitions, construction, and bridge loans to stabilize a property before securing long-term financing.

While traditional financing is unavailable, hard money provides the critical key to unlock the door to Colorado’s cannabis real estate market.

Cash Flow Analysis Calculator

---

Current Market Insights: Colorado Hard Money Loan Rates & Requirements (June 2025)

Navigating the hard money landscape requires understanding the current terms. As of June 7, 2025, here are the typical rates and requirements for marijuana commercial real estate loans in Colorado.

Interest Rates:

• Range: Expect interest rates to fall between 11.0% and 13.5%.
• Influencing Factors:
  • Loan-to-Value (LTV): Lower LTVs (meaning you have more cash in the deal) result in lower rates. Lenders are typically capping LTVs at 60-65% for cannabis properties.
  • Property Type: A fully-licensed, cash-flowing dispensary in a prime Denver location like Cherry Creek will secure better terms than a vacant warehouse in a less-established area.
  • Borrower Experience: Proven real estate investors with a track record of successful projects may receive more favorable terms.
  • Loan Complexity: A simple acquisition bridge loan will be priced more competitively than a complex ground-up construction loan for a cultivation facility.

Loan Requirements:

Unlike traditional loans, the focus is on the asset, but you still need to be prepared.

• The Property is Key: A detailed appraisal and a clear title are paramount. The lender’s primary security is the real estate itself.
• Entity Requirement: Loans are made to a business entity (LLC, S-Corp, etc.), not to individuals. This protects both the borrower and the lender.
• Clear Business Plan: Lenders need to see a well-articulated plan. This includes project costs, timeline, and your exit strategy (e.g., refinancing with a permanent lender once the property is stabilized, or selling the property).
• Sufficient Equity: You will need to contribute a significant down payment, typically 35-40% of the purchase price.
• Cannabis Licensing: You or your tenant must have the appropriate state and local licenses for the intended cannabis operation (retail, cultivation, manufacturing, etc.).

The most significant benefit for many investors is what is not required: there are no personal income checks, no tax return analysis, and a low credit score is often not a deal-breaker if the property and plan are solid.

Property Pro Forma Generator

---

Geo-Targeting: Prime Investment Opportunities in Colorado

Colorado’s cannabis real estate market is not monolithic. Different regions offer unique opportunities and require a localized strategy.

• Denver: As the state’s economic hub, Denver remains a top-tier market. Investors are targeting dispensary locations in high-foot-traffic neighborhoods like the RiNo (River North) Art District and South Broadway (SoBo). Warehouse and industrial properties in zip codes like 80216 and 80205 are in high demand for cultivation and processing, driven by their proximity to the urban core.
• Boulder: With a strong economy anchored by the University of Colorado and a thriving tech scene, Boulder is a premium market. While zoning is restrictive, opportunities for well-capitalized investors to acquire existing, licensed properties in areas like the East Boulder industrial parks can be incredibly profitable. The city’s focus on sustainability makes it an ideal location for “green” cultivation facilities.
• Colorado Springs: As the second-largest city, Colorado Springs presents a more accessible entry point than Denver. The city has a robust industrial real estate market, particularly in areas along the I-25 corridor and near the airport, making it suitable for larger cultivation and manufacturing operations. The strong military presence and growing population fuel consistent retail demand.
• Pueblo County: Known as the “Napa Valley of Cannabis,” Pueblo has embraced the industry. Its favorable land prices and supportive local government have made it a hub for large-scale cultivation. Investors are actively seeking land and greenhouse facilities, particularly in zip codes like 81001 and 81006.
• Emerging Markets: Don’t overlook cities like Fort Collins, Grand Junction (look at zip code 81505 for value), and Greeley. These areas offer lower acquisition costs and are seeing population growth, presenting an opportunity to get ahead of the curve in developing ancillary and retail cannabis real estate.

---

Finding the Right Lender: Why GHC Funding is Your Strategic Partner

In a market this specialized, you don’t just need a lender; you need a capital advisor. While some direct lenders exist, navigating their specific requirements and finding the right fit can be a full-time job. This is where a specialist firm like GHC Funding becomes an invaluable asset.

GHC Funding has distinguished itself by embracing complexity and providing tailored financing solutions for entrepreneurs and investors. They specialize in CRE loans and business loans, understanding that a one-size-fits-all approach doesn’t work, especially in a niche like cannabis.

Here’s why investors choose GHC Funding:

1. Market Expertise & Lender Relationships: GHC Funding has cultivated a network of private capital and direct hard money lenders who are actively funding cannabis real estate projects in Colorado. They know which lenders specialize in cultivation facilities versus retail dispensaries and can match your project with the right capital source.
2. Flexible, Creative Underwriting: By working with a variety of capital partners, GHC Funding can facilitate loan structures that meet specific project needs. They understand asset-based lending and can help package your loan request to highlight its strengths, increasing the likelihood of approval.
3. A Streamlined Process: Instead of applying to dozens of lenders, you have a single point of contact. The team at GHC Funding works with you to understand your goals, gather the necessary documentation, and champion your project to their capital partners, saving you time and frustration.

For investors serious about capitalizing on Colorado’s cannabis real estate market, GHC Funding provides the expertise and access to capital necessary to get deals done.

Ready to Fund Your Next Cannabis Real Estate Project in Colorado? Contact GHC Funding Today!

---

Helpful External Resources for Colorado Real Estate Investors

To succeed, you need to stay informed. Here are several high-quality resources for investors operating in Colorado:

• Colorado Division of Real Estate (DORA): The official source for licensing laws, regulations, and consumer protection information. A must-bookmark for any serious investor.
• Investment Community of the Rockies (ICOR): The state’s largest and most prominent real estate investor association (REIA). ICOR offers networking, education, and market updates for Denver, Colorado Springs, and Northern Colorado.
• Colorado Department of Revenue – Marijuana Enforcement Division (MED): The primary regulatory body for the cannabis industry in Colorado. Essential for understanding licensing requirements and compliance.
• Denver Metro Commercial Association of REALTORS® (DMCAR): Provides market data, advocacy, and professional development for commercial real estate professionals in the Denver area.

---

Q&A: Answering Your Top Questions

Your Next Move

The Colorado cannabis real estate market offers incredible opportunities, but it demands speed and strategic financing. Hard money lending, facilitated by an expert partner, is the most effective tool for investors looking to build a successful portfolio in this dynamic industry.

Don’t let a lack of traditional financing sideline your investment goals. With the right property, a solid plan, and a strategic capital partner, you can achieve exceptional returns.

Take the next step. Visit GHC Funding to explore your options for CRE loans and business loans and position your next project for success.

Get a no obligation rate quote.

Loan amount requested *

USD

First Name *

Last Name *

Email Address *

Phone Number *

Consent *

Yes, I agree with the privacy policy and terms and conditions. You may unsubscribe at any time. 

Request Quote