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. 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 financing given would focus on the value of the future lease payments as well as on the tenants. 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? 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. 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. 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. This is beneficial so that you can remove the threat of personal liability. 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. Your investment grade tenants allow you to get more potential investors to the properties that you are selling. In the same way, it can also lease the property. 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. It is also important that you study about the credit tenant lease terms out there. By knowing this, you can know what your responsibilities are that are different from the institutional providers. Part of the responsibilities of the tenant is to pay for the tax, the insurance as well as the maintenance needed. In this matter, the burden will not be with the landlords but with the tenants.