By Glen Weinberg, Chief Operating Officer, Fairview Commercial Lending | Originally published in the Scotsman Mortgage Guide
With recreational marijuana now legal in four U.S. states—including newly added Oregon and Alaska—and medical marijuana approved in 23 others, the industry is experiencing what many describe as a modern-day gold rush. Yet despite its momentum, one major roadblock remains: marijuana remains illegal under federal law.
This legal conflict creates significant complications for lenders considering participation in cannabis-related real estate or business lending. The biggest concern? Even if a loan is perfectly structured and performing today, federal enforcement actions in the future could jeopardize a borrower’s ability to repay—placing lenders in uncertain legal territory.
The central question becomes: Are lenders willing to cross that line and engage in a potentially high-return sector, even as regulatory risks loom large?
For brokers and lenders exploring opportunities in the cannabis space, success depends on balancing upside potential with strong legal and financial safeguards. Structuring deals with compliance in mind and working with experienced legal counsel are non-negotiable steps in today’s still-evolving marijuana marketplace.
Fairview Commercial Lending is a privately funded hard money lender specializing in residential loans (GA, CO, FL) and commercial loans (GA, CO, IL, FL). We charge no upfront fees and can typically close loans in 5–10 days.
