Apr 16, 2020
When cannabis businesses need funding, they can’t simply get traditional loans. A number of legal and regulatory hurdles stand in the way for many operators, and the rules surrounding lending vary greatly from state to state. For investors who do lend to cannabis businesses, finding great partnerships isn’t easy - and differs in a number of key ways.
Ian Lindemann has had a front row seat as this industry has grown. He’s the Head of Cannabis Business Development at Lead Funding, a fully integrated direct lender based out of Denver with twin focuses on residential real estate and developing medical and adult use cannabis businesses. With a heavy focus on indoor cultivators, retail operations, and real estate backed lending, Lead Funding has developed a unique niche - and hasn’t had a single client default on a loan.
Today, Ian joins the podcast to discuss how Lead Funding created a highly effective model for cannabis business lending, what makes a potential partner a great fit (and the many reasons he’s had to say no to deals), and why he doesn’t think federal legalization will ultimately have a significant impact on his corner of the industry.
KEY TAKEAWAYS
- What the cannabis lending space currently looks like - and why some states are better fits than others for cannabis investing.
- How cannabis entitlements and valuations can massively alter the value of a property in states that opt into medical or adult cannabis use.
- What Lead Funding does to help operators maximize funding options and claim available tax benefits in a highly complex industry with unique legal status.
- How many applications Lead Funding receives, what their approval process looks like, and how Ian separates the wheat from the chaff in a field where many operators don't quite yet know what they're doing.
- How the lack of traditional banking infrastructure impacts Ian’s business - and how banking operations have improved significantly for owner-operators.
Show Notes
For complete show notes, including transcripts, takeaways, and links to all the resources mentioned, visit SoHoExp.com/12
To learn more about the podcast and get access to all episodes, visit: SoHoExp.com/GreenRepeal