All Forum Posts by: Michael Taylor

@Zachary Beach you haven’t refinanced in over a year and a half? What rate do you currently have? We should talk

@Manu Kalia Good luck! Most commercial lenders willing to finance cannabis projects want at minimum 6 months of bank statements stemming from your cannabis operations, P&Ls showing profitability and still charge three points and 12% amortized over 20 due in 5. Your best bet is to bring on private money. As a cultivation company I'd try my hardest to take that on as debt but unless you have a very experienced team, the right companies to collaborate with, and shelf space figured out you could be in for a rude awakening as to how hard it is to get paid in this industry 

@Carolina Galindo I've been in the cannabis space for over a decade and can answer any questions you might have, I've brokered many cannabis real estate deals

@Paul Kubin Hi Paul, I live in Santa Rosa and just finished a full gut rehab which I ended keping as my primary but the number would have worked as a brrrr so they are definitely out here. My business is in Ukiah so I'm pretty familiar with that area and just from driving neighborhoods out there I think it's a brrrrr gold mind. I'd be interested in JV'ing a deal with you if that's possibly something you would be interested in as well?

@Steve Morris can you share how your company structures these deals. For example I have a deal I'm looking at, fully licensed and operating farm on 60 acres with a purchase price of $2.5m which gets you all the licenses and the land with two hoses and a few accessory dwellings/dry and processing facility

@William Yeh We bank with Darma financial but there are several banks out there who are willing to take on Cannabis accounts, for the most part they are state backed credit unions. Would love to talk and see what you and your group are working on.

You’re young so time is on your side, Santa Rosa is a high appreciating city so finding people willing to sell for a discount is very tough. If I were in your shoes I’d find an older house in a good neighborhood (east of the 101) that you can rehab and rent a couple rooms out. If your credit is above 680 any home under $704k you can do a conventional loan with only 10% down otherwise I’d look into fha or even a 203k loan. With forced appreciation you should be able to refinance and at a minimum be able to do away with pmi if you run your numbers correctly. Do this every year for the next five years and you will have your retirement in 20 years

Maybe bring in a partner so you can offer cash as well? I’d be interested in taking a look

You have a dispensary license in Sacramento that you are leasing out?

As an owner of a licensed cannabis dispensary in California and deal technician of other cannabis retailers, I’ve noticed the big winners are always the property owners. I just got my real estate license and know of several real estate deals I can broker for good money but I’d much rather become the property owner in the transaction. Since working with banks is a no go I’m wondering if anyone has an opinion on how best to structure a deal like this and what equality I should give as I don’t want to be to greedy or short myself. I have money to put in the deal but always love putting up nothing 
some basic numbers would look something like this

$1,000,000 purchase

Property rehab paid by tenants $200,000 (sewage, city water connection, fire sprinklers, external and internal rehab)

Rents would be locked in at 10 years + multiple 5 year options & 2.5% annual increases starting @ $9,000/mo gross