JF 4011: Cannabis Real Estate Debt, Evergreen REIT Structure and Risk-First Diligence ft. Chris Reece
Description
On this episode of the Passive Income Playbook, Pascal Wagner interviews Chris Reece about lending against cannabis-licensed real estate and why he underwrites properties to an alternative (non-cannabis) use to de-risk senior mortgages on stabilized assets. They dig into MJ REIT’s evergreen, 506(c) structure—monthly subscriptions/redemptions, no lockup, a $25k minimum—and its goal of double-digit annualized distributions (11.27% net since inception) paid monthly. Chris contrasts construction lending vs. stabilized assets, explains how federal illegality (Schedule I/280E, SAFE Banking stalls) shapes the opportunity, and why today’s “gray zone” may persist for several years even as state markets expand. The conversation closes with how LPs should diligence cannabis debt funds: team/IC depth, conservative LTVs, consistency through cycles, and alignment on risk.
Chris Reece
Current role: Founder & CEO at MJ REIT
Based in: Greater Philadelphia Are
Say hi to them at: mj-reit.com, LinkedIn
Visit investwithsunrise.com to learn more about investment opportunities.
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