Investment Grade Tenants: Important Things You Need To Know About It
If you want to know more information about investment grade tenants, then this article is for you. This is actually good news to all those landlords out there. When it comes to having the best financing option out there, this is perhaps the best one you can get these days. What this article talks about is the investment grade tenants. You can rely on this company because the rating agency knows its 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.
It is important that you have an idea on what investment grade rating is all about. One of the important things that a credit tenant lender should so is to check the rating of the tenant before making up the mind. 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. If you do this, they will be glad to invest in products like bonds and more. The market is very stiff these days.
The good news with landlords with credit tenants is that long term loans are made available for them. The truth is that most landlords consider this if they have plans to refinance a property or buy something. 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 most underwriters rely on 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. 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. If you own the property, this is an advantage on your part because it can help you earn more. 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. 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.