NEW YORK CITY, NEW YORK, UNITED STATES, Oct. 10, 2022 /EINPresswire.com/ — The company provides solutions to cannabis business financing needs created by limited financing options caused by the federal illegality of cannabis products in the country.
Rainbow Realty Group, LLC, a real estate financier that works with tenants and borrowers involved in the cannabis industry, has announced plans to help cannabis businesses by providing equity financing options. The company writes traditional real estate securities for commercial, industrial and agricultural properties, and purchases or mortgages real estate as needed by the owner.
Rainbow, one of the few cannabis loans in New York, aims to provide solutions to bridge the financial gap for cannabis businesses operating in the country. The federal illegality of cannabis use in the United States has made it extremely difficult for cannabis companies to obtain traditional means of financing. As it stands, 37 states have legalized the use of medical cannabis, of which 19 states allow recreational or adult use of cannabis. As more states legalize medical cannabis or repeal their ban on recreational use, the demand for capital to finance new businesses or expand existing ones increases. This is the need that Rainbow intends to cover with its https://rainbowrg.com/cannabis real estate services.
Rainbow has built a proven process to provide capital to cannabis companies at a time when investment in the industry has been scarce. This has allowed the cannabis real estate lender to provide capital that is tied to the owner’s real estate. The company offers two financing options: lease sale and mortgage, for cannabis owners who own real estate or have a path to real estate ownership.
Sale-leaseback financing allows cannabis owners to use the cash invested in their property without incurring debt. The lease term of the property can range from 10 to 15 years, with multiple extension options from 5 to 10 years. Has 8%-11% cap rates based on purchase price.
Mortgages allow homeowners to retain ownership of their property or finance a purchase option on their lease. Mortgages have interest rates ranging from 9% to 12% and do not require amortization. Terms range from 2 to 4 years with provisions for extension and prepayment options.
Speaking about the nature of their financial service, company president Fredric H. Gould said: “Rainbow’s management team has 10 years of cannabis experience and 60 years of real estate experience. We have developed a niche, working with cannabis companies, while financing the real estate guarantees that we know best. We strongly encourage interested investors and operators in need of financing to contact us.”
About Rainbow Realty Group, LLC: Rainbow Realty Group, LLC is a real estate investment firm involved with companies in the U.S. cannabis industry. The Company’s target assets include licensed retail dispensaries and industrial cultivation facilities in the United States. Joined.
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