Green Leaf Investment Fund

Provide warehouse and greenhouse properties to cannabis growers. Cannabis is the fasting growing industry in the U.S. and the real opportunity is the real estate provided to growers and cultivators.

Category Real Estate Location New York, NY Url http://www.greenleafinvestmentfund.com/

Highlights

  • When industrial properties are retrofitted for cannabis cultivation they have shown an increase in value by 5 to 10 times.
  • As state legalization increases across the U.S. the demand for cultivation facilities is starting to outweigh the supply in the market.
  • Industrial properties turned cultivation facilities are being regarded as the crown jewel of investors' portfolios.

Overview

Green Leaf Investment Fund: An Opportunity With Strong Roots

Putting In The Hours From a Young Age

One of the earliest memories I have from my childhood was working in my grandfather’s restaurant. I remember him putting in 15-hour shifts every day and putting all of the money he had saved up during his lifetime since moving to the United States into a family restaurant. He organized a few private investors who provided the financing to help him launch his small corner eatery. When I was younger, I would go into his restaurant and clean tables, take out the trash and serve in any capacity that I could to help him run the small business. Most of the time, I didn’t receive any pay for my work, because I realized that the money that would have been paid to me was needed more to keep the restaurant supplied and operating at peak performance.

Most of my friends never understood why I would put in all those hours of work and received no pay. They would be gathering, having fun and many times asked if I could join, but I often had to tell them that my grandfather needed my help at the restaurant and I could not hang out with them.

What they didn’t realize was that my relationship with my grandfather was something very unique and one that they could never fully understand. My grandfather had a major influence on my life and he was the person who raised me. I understood how many sacrifices he had made so that one day I could realize the life he had hoped he could give me. Looking back on my time working at the restaurant, I realize now, as I grow older, that it was a major influence on the man I have become today.

Protecting Your Firm’s Investors, No Matter What the Cost

One incident that I will never forget happened late on a Sunday night as we were closing the store up for the night. In a typical fashion, I would see my grandfather counting the money that was in the register. This time, however, I saw him count the money a few times, shake his head and go into his wallet and take ten dollars of his own money out and put it in the register. Knowing how tight finances were for him I asked, “Why are you putting money into the register?” He looked at me and said, “Whoever was running the register must not have collected the right amount on one of the meal tickets and that his investors who had placed faith in him to run the business effectively and profitably shouldn’t be punished for this loss.” This principle and his words of wisdom are something that I have never forgotten to this day.

Taking Care of Loved Ones

As he grew older and I began my ambitious career in the commercial real estate industry; shortly after starting, I received a call from him. He told me he had some bad news he had to share with me. He had been diagnosed with cancer and the outlook wasn’t looking good. According to the doctor, his time was very limited and would probably be only a matter of months. After the call, I remember sitting in my seat at the office just frozen and not sure what I could do to help the man that had such an impact on my life and was my idol.

What Drew Me Into the Cannabis Industry?

I still remember going to the hospital to visit him every few days and with each week that went by I could see him doing worse and worse and in extreme pain. Many times it was so bad that we couldn’t even have a conversation. Then one day I went to the hospital and all of a sudden, I saw my grandfather with a big smile on his face. I inquired “Did they give you a different medicine today?” He looked me in the eyes and said that he was given medical marijuana to relieve some of the pain he was in. For the first time in a month or two we were able to have a great conversation about life and all of the things that were going on in the world.

It was at this moment I learned about the benefits that marijuana could provide for sick patients who were suffering from overwhelming, chronic pain. A couple weeks later, right before he passed away, I went to the hospital knowing that he didn’t have much time left.

When I arrived I could see he wasn’t doing well and when I approached him in his hospital bed he looked me in the eyes and said “Son, I don’t know how much longer I will be around, but I want to ask you, what is the biggest thing you’ve learned from me?” I looked back at him and said, “I will never forget the day you put that $10 bill into the register because you felt you owed it to your investment partners who had put their trust in you to run a profitable business.” He looked back at me with a big smile on his face and I knew that he realized that what I had learned from that event would have an enormous impact on the rest of my life. Even though the dollar amount was small, he realized I had been taught a principal that was key in running an effective company; trust and honesty. The next morning my grandfather passed away.

Now Was The Time to follow in my grandfather’s footsteps

After his passing I began to think more and more about running my own business one day like my grandfather had many years before. At this juncture, I had been in the commercial real estate industry for a decade and had underwritten and structured hundreds of commercial real estate deals ranging from warehouse, retail/office, co-op, condominium and multifamily buildings. I served as the team leader of eight portfolio managers while managing a portfolio of more than 400 commercial real estate loans in excess of $2 billion dollars. My experience and expertise was commercial real estate, but my mind kept wandering back to the benefits of medical marijuana.

It Was At This Moment I Made the Big Move

I decided now was the time to start my own business and reached out to two of the most successful and knowledgeable coworkers at the Bank. I talked with both of them about the opportunity and we all decided that we were looking at an industry and opportunity that comes along once a lifetime. We decided that week to leave our jobs in our promising careers we had started and create Green Leaf Investment Fund. By combining our decades of experience in commercial real estate with the cannabis industry, we saw a life changing opportunity for us and our investors. We began the rigorous process with the SEC to have our REG A+ Tier II application approved; in July of 2016 we had finally received approval based on our backgrounds and impressive work histories. It took us over a year to receive approval from the SEC, but we had finally achieved another step in reaching our dreams. We are currently fortunate to be one of the only companies operating in this space to receive approval.

After Approval and finalizing our business plan, IIPR was up-listed on NASDAQ

A company with the same business plan to its core was up-listed on NASDAQ. Shares are currently trading at approximately $18.10 with over a $63.81MM market cap. The problem I saw with their business plan was that they were going “all in” on one property in NYS. Our focus will be acquiring properties in states where cannabis laws are more advanced, as well as spreading out our investments over numerous properties in different states.

Five Year Growth Projections

Investors: 1,000
Average Investment: $5,000
Total Raise: $5,000,000

Initial investments will go to purchase of three properties located in California, Nevada and Massachusetts that have already been located. Leases are being negotiated with growers at this time on a NNN basis with ten year terms and one ten year option. All of the growers have operations in-place that are successful and are looking for a real estate partner to expand their operations immediately.

Projected P&I

Projected Balance Sheet

*The six properties acquired after our initial three acquisitions will be financed with favorable terms with relationships our management team has formed with these companies. Terms will be at approximately seven years fixed at 5% with the ability to leverage all of the properties up to 75% of their value.

Projected Cash Flow

Vision

To be the preeminent source for the best real estate assets in the burgeoning Cannabis Industry.

Green Leaf Investment Fund ("GLIF") is an investment fund designed to make strategic investments in real estate in the fast growing $6+ billion legal Cannabis Industry. GLIF invests in and develops real estate throughout the U.S., focusing on states that are currently legal for recreational and medical cannabis use. We capitalize the real estate infrastructure for category-leading businesses, such as dispensaries, grows and marijuana infused products which are scalable and can be leveraged to other growth markets. We leverage the lack of banking, capital, traditional financing and liquidity available to businesses in the Cannabis Industry to generate attractive returns for the Fund.

Description

Our business model at the core is securing industrial properties (IP) in high growth markets where cannabis is currently legal on the recreational/medicinal level. Upon conversion of the IP into a zoned cultivation facility the value of the property appreciates significantly. It is not uncommon to see growers lease these facilities at 4 to 5 times the market rate.

Investing in our offering allows you access to a high growth opportunity at the inception of the deal. Our team has transacted billions of dollars in real estate deals and we look forward to providing significant returns to our investors.

Our goal is to raise $5MM through this offering to acquire properties that we have already identified as viable investments in legal markets. We intend to purchase two properties in California and another property in Massachusetts. The company has targeted several buildings in California for purchase ranging from $1.5MM to $2MM as well as a property in MA currently being sold for approximately $850K. The leases are being negotiated by the company right now and will have approximately a 40% to 50% annual ROI with NNN leases for each building. The company anticipates to have approximate revenues of $2.5MM in our first year of business.

Increasing Warehouse Rents for Cannabis Cultivators

The chart above demonstrates the potential returns that commercial real estate investors stand to earn in this rapidly growing industry. In California, warehouse space that is leased to growers has a return of $20/square foot compared to $5/square foot if the building is leased to a different industry. This is one example of why GLIF has targeted the cannabis real estate industry.

Use of Proceeds

Green Leaf Investment Fund will invest 92% of the funds raised to purchase properties, 3% will be used for closing fees and 5% will be held for administrative and reporting fees.

Team



Douglas DiSanti


Founder & CEO
Douglas DiSanti has worked for two major banks; as an underwriter for New York Community Bank he structured and underwrote $1.5 Billion dollars in commercial real estate loans. Mr. DiSanti, has also managed a team of portfolio managers for Santander Bank, a multi-international bank. His own portfolio consisted of 200 commercial real estate loans – in excess of $1 Billion dollars.





John Prettitore


Chief Financial Officer
John Prettitore spent the early part of his commercial real estate career as an underwriter for New York Community Bank and during that time underwrote in excess of $1 Billion dollars in commercial real estate loans spread over hundreds of uniquely structured transactions. Mr. Prettitore currently works as a loan originator for People’s United Bank. As such, he has developed a strong relationship with some of the most prominent CRE Brokers.





Patrick O’Donnell


Chief Operating Officer
Over Patrick O’Donnell’s career he has underwritten over 2.5 Billion dollars of commercial real estate loans for New York Community Bank. He now works for a Suffolk Community Bank as an officer overseeing the lending department. Mr. O'Donnell excels in managing large teams and constructing budgets on a quarterly basis to make sure the bank meets their financial obligations.



Deal Terms

Round Type

Regulation A+

Type of Security

Equity

Minimum Investment

$480

Minimum Wire Investment

$5,000

Terms

Selling up to $10,200,000.

Round Stage

Seed

Round Size

$5,000,000

Pre-Money Valuation

$6,240,000

Share Price

$0.48

Documents

Offering Circular
Subscription Agreement
SEC Filings

Risks

There are risks associated with cannabis being illegal federally. You can see details about the risks here.

Compensation Disclosure

CrowdVest shall be entitled to receive an administration fee of $10,000 per month and a one-time consulting and due diligence fee of $125,000 from GLIF that will be due upon completion of the offering. The fee does not depend on the size of the offering or its success. In addition, CrowdVest shall be entitled to receive warrants to purchase with number of shares determined by dividing $125,000 by the issuer price to investors in the Offering. CrowdVest will also receive 500,000 shares of GLIF as part of the agreement to allow for 100% of the compensation to be paid after the completion of the Offering.

Raising $5,000,000 at $6,240,000 Pre-Money Valuation via Regulation A+

$480 Minimum Investment