Cannabis Real Estate Lending: Income Without Ownership with Chris Reece
Send us Fan Mail What if one of America's fastest-growing industries was operating almost entirely without access to traditional banking? In this episode of Path to Passive, host Steven Arita sits down with Chris Reece, a CFA and 30-year finance veteran who's managed portfolios at Vanguard, Hartford, and FS Investments alongside Blackstone. Chris left the institutional world to launch MJ REIT, a fund that provides critical real estate financing to cannabis operators who can't get a mortgage at JPMorgan or Wells Fargo. You'll learn how cannabis-backed commercial real estate works, why Chris underwrites every loan assuming the tenant walks away tomorrow, and how his fund has delivered 11% annualized returns with monthly distributions since 2022. He breaks down the regulatory tailwinds reshaping the industry, from Schedule III reclassification to state-by-state expansion, and shares a vivid underwriting example where a $2 million industrial building gets $6 million in cultivation retrofits but still gets valued at its bare-bones industrial worth. There's also a memorable moment where Chris recalls being at a dinner party, explaining what he does to someone on their fourth glass of wine who declares they'd "never touch that stuff" — a story that captures just how far the stigma still has to go. Whether you're a W-2 tech professional exploring passive income or a seasoned investor looking to diversify into alternative real estate, this conversation will give you a framework for evaluating cannabis real estate as a legitimate, income-generating asset class — and maybe even shift a few assumptions along the way. Connect with Chris: 🌐 Company Website: https://mj-reit.com/ 🌐 Company Website Events: https://mj-reit.com/events Chris Direct Line: 6103899159 Episode Highlights: 0:00 – Intro 0:54 – Chris Reece shares his 30-year finance journey from Vanguard to cannabis real estate. 4:22 – How MJ REIT underwrites cannabis-backed properties at 75% LTV with built-in downside protection. 8:35 – Industry tailwinds: Schedule III reclassification and state expansion fueling real estate demand. 14:31 – Fund delivers 11.07% net annualized returns with monthly distributions since 2022. 16:31 – Monthly redemptions explained — rare liquidity feature for a real estate debt fund. 20:59 – Ohio dispensaries case study: profits interest deals boosting returns to 12-16%. 28:50 – The dinner party story: cannabis stigma meets the fourth glass of wine. 32:12 – Outro — Share this with your tech friends who you think would benefit from learning about passive income and alternative real estate investments. For more resources and guides, check these out: Crack the Code https://www.aritacapital.com/crack-the-code/ Investor 101 https://www.aritacapital.com/investor-101-resource/ Due Diligence Resource https://www.aritacapital.com/dd-checklist-resource/ If you want to learn more, reach out at: Email: steven@aritacapital.com LinkedIn: https://www.linkedin.com/in/aritasteven/ IG: https://www.instagram.com/the.real.arita


