Rates on Hard Money for Cannabis Businesses in Colorado NOW!

Unlocking Green Gold: Navigating Interest Rates on Hard Money Loans for Cannabis Businesses in Colorado

Published: June 7, 2025

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Rates on Hard Money for Cannabis Businesses in Colorado NOW! The Colorado cannabis market is a frontier of opportunity for savvy real estate investors. From bustling Denver dispensaries to expansive cultivation facilities in Pueblo, the potential for high returns is undeniable. However, traditional financing often remains frustratingly out of reach, creating a significant barrier to entry and expansion. This is where the strategic use of hard money loans comes into play, offering a powerful alternative for acquiring and developing cannabis-related properties.

In this article:

This comprehensive guide will illuminate the landscape of interest rates on hard money loans for cannabis businesses in Colorado. We’ll explore current market rates, detail loan requirements, and pinpoint why a flexible and experienced lender like GHC Funding is your essential partner in this burgeoning industry.

Rates on Hard Money for Cannabis Businesses in Colorado NOW!

The Current Climate: Interest Rates on Cannabis Hard Money Loans (as of June 2025)

Due to the unique risk profile and federal regulatory landscape of the cannabis industry, interest rates for hard money loans are higher than traditional commercial mortgages. However, they are often the most accessible and fastest financing option available.

As of today, real estate investors can expect interest rates on hard money loans for cannabis businesses in Colorado to range from 9.5% to 15%.

Several key factors will influence where your loan falls within this range:

  • Loan-to-Value (LTV): A lower LTV, meaning a larger down payment from the investor, will typically result in a more favorable interest rate. Lenders in the cannabis space often look for LTVs between 50% and 70%.
  • Debt Service Coverage Ratio (DSCR): This metric measures the property’s ability to cover its debt obligations with its own cash flow. A strong DSCR, typically 1.25x or higher, demonstrates lower risk and can lead to better terms. For pre-revenue properties, lenders will assess pro-forma income projections.
  • Credit Score: While hard money lenders place a greater emphasis on the asset’s value, a solid personal credit score (generally 650 or higher) can still positively impact your interest rate and loan terms.
  • Property Type: The type of cannabis property plays a role. A well-located retail dispensary in a high-traffic area might secure a better rate than a remote cultivation facility.
  • Experience: Investors with a proven track record in real estate or the cannabis industry may be offered more competitive rates.


Colorado Cannabis Investor IQ Challenge

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This quiz is designed for sophisticated investors looking to navigate the nuances of Colorado's commercial cannabis landscape. It delves into the regulatory environment, market dynamics, and operational considerations crucial for strategic decision-making.


Unlocking Your Next Cannabis Real estate Venture: Loan Requirements

One of the primary advantages of hard money loans is their streamlined and asset-focused underwriting process. This is particularly beneficial for cannabis entrepreneurs and investors who may not meet the stringent requirements of conventional lenders.

Here’s what you can generally expect when seeking a hard money loan for a cannabis property in Colorado:

  • No Personal Income Verification: Many hard money loans for real estate investors do not require personal income checks, focusing instead on the property’s income-generating potential.
  • Entity Requirements: Loans are typically made to a business entity (LLC or corporation) rather than an individual. This provides a layer of liability protection for the investor.
  • Accepted Property Types: Hard money lenders are often more flexible with property types than traditional banks. This can include:
    • Retail Dispensaries
    • Cultivation and Grow Facilities
    • Processing and Manufacturing Plants
    • Testing Labs
    • Warehouses and Distribution Centers
  • Clear Exit Strategy: Lenders will want to see a clear plan for how the loan will be repaid, whether through a sale of the property, a refinance once the business is stabilized, or long-term rental income.

GHC Funding: Your Go-To Lender for Colorado Cannabis Real Estate

Navigating the complexities of financing in the cannabis sector requires a lender with expertise, flexibility, and a deep understanding of the market. GHC Funding stands out as the preferred lender for real estate investors in Colorado’s cannabis industry.

While many lenders are hesitant to enter the cannabis space, GHC Funding offers a range of CRE loans and business loans tailored to the unique needs of this market. Their team understands the value of speed and certainty, providing a streamlined process to ensure you can capitalize on time-sensitive opportunities. With a focus on asset-based lending, GHC Funding can often provide financing when traditional banks say no.

Learn More About GHC Funding’s Commercial Real Estate Loan Programs

Geo-Targeting: Prime Colorado Locations for Cannabis Real Estate Investment

Colorado’s cannabis landscape is diverse, with prime investment opportunities scattered across the state. Here are some key areas and property types to consider:

  • Denver: The undisputed hub of Colorado’s cannabis scene, Denver offers a multitude of opportunities.
    • Neighborhoods to Watch: The River North (RiNo) Art District and the historic Baker neighborhood are seeing significant growth in both residential and commercial real estate, making them prime locations for new dispensaries.
    • Prominent Zip Codes: Look for opportunities in 80216 (Globeville, Elyria-Swansea) for industrial and cultivation properties and 80205 (Five Points, RiNo) for retail locations.
    • Investment Scenario: Acquiring a warehouse in the 80216 zip code to convert into a state-of-the-art cultivation facility can yield significant returns, given the high demand for locally grown products.
  • Boulder: Known for its progressive culture and strong economy, Boulder presents a high-end market for cannabis real estate.
    • Key Area: Properties near the Pearl Street Mall can command premium rents for retail dispensaries.
    • Investment Scenario: A smaller, boutique dispensary in a high-foot-traffic area of Boulder can cater to a discerning clientele and generate substantial revenue.
  • Colorado Springs: As a rapidly growing city with a strong military presence, Colorado Springs is an emerging market for cannabis real estate.
    • Neighborhoods to Watch: The ongoing revitalization of Downtown Colorado Springs and the growth in the Northgate area present new opportunities for dispensary locations.
    • Investment Scenario: Securing a retail space in a developing commercial plaza in Northgate could position a dispensary for long-term success as the area continues to expand.

Helpful Resources for Colorado Real Estate Investors

To further your research and connect with the local real estate community, here are some valuable external resources:

  • Colorado Division of Real Estate: The official resource for real estate laws, licensing, and regulations in the state. https://dre.colorado.gov/
  • Investment Community of the Rockies (ICOR): A prominent real estate investor association in Colorado, offering networking and educational opportunities. https://www.icorockies.com/
  • Colorado Association of REALTORS®: Provides market data, industry news, and professional development for real estate professionals. https://coloradorealtors.com/
  • Colorado Housing and Finance Authority (CHFA): Offers financing options and resources that can sometimes be paired with other forms of investment. https://www.chfainfo.com/
  • Denver Metro Commercial Association of REALTORS® (DMCAR): A key resource for commercial real estate trends and data in the Denver area. https://dmcar.com/

Frequently Asked Questions (Q&A)

1. Is it difficult to get a loan for a cannabis property in Colorado?

While traditional bank financing is challenging due to federal regulations, obtaining a hard money loan from a private lender like GHC Funding is a very viable and often straightforward process, especially for investors with a solid property and a clear business plan.

2. Can I get a hard money loan for a cannabis business with no prior experience in the industry?

Yes. While experience is always a plus, hard money lenders primarily focus on the value of the real estate asset. A strong property in a good location with a well-researched business plan can secure financing even for newcomers to the cannabis space.

3. What is the typical loan term for a hard money loan in the cannabis sector?

Hard money loans are typically short-term, ranging from one to five years. This provides the investor with the necessary capital to acquire and stabilize the property before refinancing into a longer-term, lower-rate loan.

4. Can I use a hard money loan to purchase land for a new cultivation facility?

Yes, hard money loans can be used to purchase raw land, especially if you have a clear development plan and the necessary entitlements in place.

5. How quickly can I close on a hard money loan for a cannabis property?

One of the significant advantages of hard money is the speed of closing. While a traditional loan can take months, a hard money loan can often be funded in as little as two to three weeks, allowing you to act quickly on promising investment opportunities.

6. Do I need a cannabis license before applying for a hard money loan?

It is highly recommended to have at least started the licensing process. A lender will want to see that you are on a clear path to being legally operational.

7. Can I get a loan for a property that will be used for both cannabis and non-cannabis purposes?

This depends on the lender and the specifics of the property. Full transparency with your lender is crucial in these situations. A flexible lender like GHC Funding is more likely to consider such unique scenarios.

Get Pre-Approved for a Business Loan with GHC Funding Today!

The Unique Advantage of Hard Money for Cannabis Investors

For real estate investors in the Colorado cannabis market, hard money loans offer a distinct set of advantages over traditional financing:

  • Speed to Close: The ability to close quickly is paramount in a competitive market.
  • Asset-Based Lending: Your property’s value is the primary consideration, not your personal financial history.
  • Flexibility: Hard money lenders can often structure loans to meet the unique needs of a project.
  • Accessibility: These loans are available to a wider range of borrowers, including those new to the cannabis industry.

Take the Next Step

Don’t let financing be the hurdle that holds you back from capitalizing on the green rush in Colorado. With a strategic approach and the right lending partner, you can secure the funding you need to build your cannabis real estate portfolio.

Ready to explore your options? Visit GHC Funding’s website or contact their team of experts today to discuss your next project and get a personalized quote for a hard money loan.


Interest rates on hard money loans for cannabis businesses