News For This Month: Properties
The Importance Of Investment Grade Tenants
A lot of people want to know about how investment grade tenant is done. 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. First of all, you should know what an investment grade tenants are. This is a company that has an investment grade rating. What makes this superb is the fact that credit tenant these days can be given a specialized financing that the lenders will give to them. 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? 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. You have to remember that there are institutional investors who like to buy this. 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.
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. In fact, there is also a chance for you to structure your own loan. This is beneficial so that you can remove the threat of personal liability. What is more important for the underwriters 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. 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. The advantage of this is that it helps you earn more profit from this especially if you own the property. 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. 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.
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