Investment Grade Tenants: What You Need To Know About It
A lot of people want to know about how investment grade tenant is done. If you are a landlord, this is good news for you. If you are looking for a financing option that is superb, this is the right one for you. What this article talks about is the investment grade tenants. The good thing with this company is that the rating agency has given them a good investment grade rating. What makes this superb is the fact that credit tenant these days can be given a specialized financing that the lenders will give to them. The lenders, in providing the specialize financing, have to think about the future lease payments value as well as the tenant when it comes to this. It is not like before that the focus was on the value of the real estate as well as the credit of the landlord.
So what should you know about investment grade rating? It is important that you check carefully the tenant’s rating as a credit tenant lender. This is one of the ways for you to know in details about the loans. You have to remember that there are institutional investors who like to buy this. If you do this, they will be glad to invest in products like bonds and more. Because of the increasing number of investors you can find these days, it seems like the market has gotten busier than before.
Today, it is now possible for long term loans to be given to those landlords who have credit tenants. You can use the long term loan for different reasons such as buying a property or refinancing it. The good thing with this is that loans can also be structured depending on the need. With this, the threat of personal liability will no longer be visible. What is more important for the underwriters is the lease value.
The good thing with being credit tenants is the fact that you can get financing in other means to invest in passive real estate by sale leaseback transaction. You can actually sell properties to a potential investor if you have good investment grade tenants. There are also some investors, on the other hand, who would want to rent the properties that you are selling. The advantage of this is that it helps you earn more profit from this especially if you own the property. So if you are a landlord, this is good news for you because this has become the best than other options out there. This helps a lot in increasing the value of the property. If you consider this, the other important thing that you need to consider is to know the terms used for credit tenant lease. You have to remember that as a landlord, you have your own responsibility to handle. By being a tenant, you have to make sure that the taxes, maintenance and insurance are all paid. This will be the responsibility of the tenant which the landlord can be freed from the burden.
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