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. There are so many landlords these days that have been waiting for this good news. There are now a lot of financing options for you but what you are reading now is something superb and exciting. First of all, you should know what an investment grade tenants are. This is a company that has an 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. The financing option does not depend on the credit of the landlord as well as the value of the real estate.
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. If you do this, you can check the loans very carefully. 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.
If you are a landlord and you have credit tenants, the good news is that you can get long term loans. 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. For the underwriters, they would depend on the lease value of the real estate.
Today, it is now possible for you to get money for investing in passive real estate through the sale leaseback transaction. If you are a property owner with investment grade tenant, can sell real estate to all those investors who are interested of it. 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. 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. The institutional investors out there will only provide the financing and will not take the responsibility of the landlord. For the tenants, they have the responsibility to pay for the insurance, maintenance and taxes. The burden will not be given to the landlords.