Investment Grade Tenants: What You Need To Know About It
If you want to know more information about investment grade tenants, then this article is for you. If you are a landlord, this is good news for you. When it comes to having the best financing option out there, this is perhaps the best one you can get these days. First of all, you should know what an investment grade tenants are. This is a company that has an investment grade rating. The good news is that many lenders these days are providing specialize financing to the credit tenants out there. 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.
A lot of people also like to know in details about investment grade rating. It is important that you check carefully the tenant’s rating as a credit tenant lender. When it comes to loans, proper and deep checking of it must be considered well. The other reason why you need to do this is for the loan to be sold to the institutional investors. You need to look for investors who are willing to invest in the products like this. The truth is that the market is very busy these days because of the many investors that are investing on this.
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. If you want to have a structure for your loan, it is also possible. With this, the threat of personal liability will no longer be visible. What is more important for the underwriters is the lease value.
Today, it is now possible for you to get money for investing in passive real estate through the sale leaseback transaction. Your investment grade tenants allow you to get more potential investors to the properties that you are selling. If you want, you can also have the properties for lease. So if you have properties to rent or sell, this can surely help you earn a lot of money. This is so much better than the commercial real estate loan. Your property can be of higher value than before. If you consider this, the other important thing that you need to consider is to know the terms used for credit tenant lease. By knowing this, you can know what your responsibilities are that are different from the institutional providers. For the tenants, they have the responsibility to pay for the insurance, maintenance and taxes. The burden will not be given to the landlords.