RRG and affiliates have been operating in the real estate industry since 1962 and in the cannabis industry since 2014. RRG has transacted on less than 2% of the transactions it has underwritten. RRG has flourished during the last 3 years – the most challenging times that the cannabis industry has faced – due to careful underwriting with security backed by hard assets.

When reviewing any potential deal, our team conducts rigorous diligence to best quantify the risk and opportunity. We consult local real estate brokers who know the market, and we speak to cannabis industry insiders that know the counterparty. Our real estate valuations are based on market non-cannabis rents for traditional retail and industrial users in the given location. RRG does not finance ground up construction. This standard diligence and underwriting practice has kept Rainbow Realty Group safe. RRG has recorded 0 losses on 57 properties financed, including two profitable workouts on legacy deals.

Rainbow Realty Group has taken a very conservative approach to the industry. 95% of opportunities we review do not make it past step one, which is the real estate evaluation. Once we are satisfied that the real estate, we will then dissect the counterparty’s business model to ensure we believe in the plan and viability of the business.