Investment Grade Tenants: What You Need To Know About It
There are so many things you can learn about investment grade tenants just by reading this article. 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. Have you heard about investment grade tenants already? You can rely on this company because the rating agency knows its investment grade rating. If you are a credit tenant, you can have a specialized financing option that is given to you by the lender. 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. The financing option does not depend on the credit of the landlord as well as the value of the real estate.
It is important that you have an idea on what investment grade rating is all about. If you are a credit tenant lender, you have to ensure that the tenant’s rating is good. 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. There are now a lot of investors that can invest in these products gladly. The market is very stiff these days.
Today, it is now possible for long term loans to be given to those landlords who have credit tenants. This is very important especially if you have plans to buy something or refinance a property. If you want to have a structure for your loan, it is also possible. This is beneficial so that you can remove the threat of personal liability. For the underwriters, they would depend on the lease value of the real estate.
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. 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. It is also important that you study about the credit tenant lease terms out there. 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.
Recommended reference: The Ultimate Guide to Investments