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. 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. This is because there is value in the future lease payments as well as the tenants that is why the lenders are doing this these days. 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? 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. Because of the increasing number of investors you can find these days, it seems like the market has gotten busier than before.
If you are a landlord and you have credit tenants, the good news is that you can get long term loans. This is very important especially if you have plans to buy something or refinance a property. 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.
In order to invest in passive real estate, you can get financing from the sale leaseback transaction. You can actually sell properties to a potential investor if you have good investment grade tenants. In the same way, it can also lease the property. 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. This helps a lot in increasing the value of the property. It is also important that you study about the credit tenant lease terms out there. The institutional investors out there will only provide the financing and will not take the responsibility of the landlord. 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.