Category Archives: Financial
Tips on Selecting an Investment Grade Tenant
When buying a single tenant leased investment, the financial ability and the quality of the tenant is very vital because in essence the person is purchasing the income source and the bundle of rights that is subject to the leasehold and the investor needs to evaluate the tenant as being investment grade. Conducting an investment analysis grade of the tenant enables the person to make a logical assumption that the landlord will be able to get their monthly rent for 20 years and they can do this analysis by asking the market to rate the risk for them.
When investigating credit ratings, there are acronyms used to evaluate the various tenants and most sound investment grade tenants have a rating of BBB or better. The credit ratings depend on various factors such as the likelihood of payment which is the capacity and willingness of the obligator to meet the financial requirements on a duty according to the obligation terms, protection afforded by, nature of and the provisions of the obligation, the relative position of, reorganization, the obligation in the event of a bankruptcy and other laws that affect the creditor’s rights.
In most cases issue ratings are an assessment of default risk, but it may also involve an evaluation of the relative seniority or the ultimate recovery in case the person defaults and in most cases, junior obligations are rated lower than senior obligations to reflect the lower priority in bankruptcy. Such a degree of differentiation may apply when the entity has both senior and subordinated obligations, and duties that are either secured or unsecured or the person operates a company or has holding company obligations.
The truth is that the rating ‘AAA’ has the highest ratings that can be assigned, and in this case, the obligator’s capacity to meet their financial commitment on the duty is very high whereas an AA rating differs from the maximum score by a minimum degree, but the capacity to meet the financial commitment of the obligation is quite strong. The rating of A is more susceptible to the adverse effects of alterations in situations and economic conditions than obligations in the high rated categories, but the capacity of the obligator to meet the financial duty on the obligation is still unyielding, and an obligation rated BBB offers some adequate protection parameters and adverse economic conditions or changing situations are more likely to lead to a weak capacity of the obligator to meet their financial commitment on the obligation. Obligations that are rated BB, B, CCC, CC, and C are viewed as having particular speculative properties, and BB indicates the lowest degree of speculation and ‘C’ is the highest.
Refer to: more tips here
A Better Knowledge on Investment Grade Credit Tenants
The first thing that you need to know about the investment grade credit tenants is that this is a special financing offer for the landlords.
There is a rating agency that gives an investment grade rating for the company called as the investment grade credit tenant. A special financing will be provided by the lender when there is a credit tenant that will rent on a property. It is actually on the value and the tenant in its lease payments in the future wherein the focus of the special financing is placed. The investment grade tenants does not focus on the credit of the landlord or the real estate.
The rating of the tenant will as a matter of fact be the basis of the lenders of investment grade tenants. The main reason as to why this is being done is so that it will be possible to sell the institutional investors and securitize the loans. The most important thing that you need to know about the investment grade is that the rating has to be at least BBB-. Investing in similar products and bonds is as a matter of fact what a lot of investors would gladly do. The participants that are able to rank in the investment grade credit tenants are the states and cities as well.
The long term loans can as a matter of fact be availed of by the landlords when they have investment grade credit tenants. To be able to refinance the property or even buy a property are some of the options that they have for the loans. When it comes to the loans they can actually be structured in a way that it will now be non recourse to the owner of the property. At the end of the day, pushing through with this option will now mean that the personal liability of the landlord will now be removed. The underwriters will be able to rely on the lease value which is why this can be possible.
There is another thing that the investment grade credit tenants can do and that is to be able to have the direct financing obtained. To enter into the sale leaseback transaction is as a matter of fact how this can be done. To be able to sell and lease to an investor is what the lender with an investment grade credit tenants can do. What happens now is that the property owner will be able to earn cash on favorable terms. This also means that they now have the opportunity to have a higher loan to value. What you need to know about this is that you will not be able to find this in the traditional commercial real estate loan.
Therefore, the property owners that are in need of loans as soon as possible can avail of the investment grade credit tenants. The investment grade credit tenants will be able to bring them a great deal of benefits.
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.
Advanced reading: use this link
What Are the Benefits of Hiring Investment Grade Tenants?
If you are an owner of several properties that are for rent, then it is a must that you hire investment grade tenants. Investment grade tenants offer landlords numerous financing options they can choose from.
Investment grade tenants get to receive an investment grade rating from any rating agency, and they are usually big, reputable companies. Lenders typically provide financial assistance to tenants depending on their landlord’s credit or the value of the real-estate, but when it comes to credit tenants, everything now depends on the tenant himself as well as the value of the lease payments he will be making in the following months.
So, what is investment grade rating all about?
It is the investment grade ratings of a tenant that help credit tenant leaders decide if the tenant can avail of loans and sell them to investors. Getting a minimum rating of BBB- is what investment grade is all about. A lot of investors opt to make investments with products and bonds that are backed by investment grade tenants such as Home Depot and Walgreens. States and cities are also major participants of the credit tenant financing industry.
So, how do you get credit tenant loans?
If you are a landlord that has a credit tenant, then you are eligible in availing long-term loans to refinance or purchase a particular property. A non-recourse structure of loan is guaranteed to the landlord in the process. In simple terms, landlords will not have to face any personal liability threats because the terms of the loan is based on the lease value.
What is the significance of sale leaseback transactions?
When credit tenants get themselves involved in sale leaseback transactions, they can immediately do direct financing. If you own a property and have a investment grade rating of your own, then this means that you can simultaneously sell your property and then lease it back. In comparison to typical commercial real estate loans, property owners can now optimize their loan-to-value amount and increase their cash, thereby favoring them more.
What credit tenant lease terms should you be aware of?
Just because institutional investors offer credit tenant financing, this does not automatically mean that they also take on the responsibilities often imposed when one is a landlord. There are three net terms that comprise credit tenant leases. This simply means that credit tenants should shoulder whatever insurance, maintenance costs, and taxes they must pay. The loan terms must be in tandem with the duration of the lease. All of these obligations greatly rely upon the tenant, meaning this burden is no longer a responsibility of the landlord. From the point of view of both the investor and the landlord, credit tenant lease terms are akin to a corporate bond. This means that all they have to do during the real estate project duration is collect checks as well as not actively get themselves involved.
Suggested Article: this link
Determining the Best Wedding Photography and Video Service
As your big day draws near, it’s vital to ensure that all service providers covering your special day are set. You should get suitable specialists for different aspects of your wedding such as the outfit, wedding photography and video, deco, wedding cake and the entire planning. Among these an extremely essential component is the wedding photography that you select. In the end, it is their task to restrain these precious moments of your day in your memory that can last for life. Listed here are several factors that will assist you get an excellent wedding cinematography. To begin with, schedule a meeting with the potential wedding photographer. The task of the photographer is not entirely the wedding photography and video, but it goes significantly beyond. The exceptional professional wedding photographers should be experienced in establishing innovative photo moments to create more fun recollections for you. He’ll know the finest method of placing the bridal troupe and their guests. A great wedding photographer will make sure that suitable background and proper lighting is provided. when meeting the potential wedding photographer, find out about the various inventive and pleasant recommendations he has in mind for creating amazing wedding cinematography.
Next, you must assess the work collection of the expert. Every reputable photographer holds a collection the jobs done previously. Assess their earlier tasks properly and ensure that it’s consistent with that which you anticipate. This step additionally provides you with an opportunity to examine the innovative abilities of your potential photographer. Select the most impressive images of the lot and find out if it was your photographer’s idea. You may even request them to follow a similar pattern in your wedding cinematography.
Consequently, you have to make sure that your wedding is a day of fun and jubilation. You have to establish that the photographer has got the traits to complement your wedding temper. Even though a wedding photographer might be excellent in the wedding cinematography, things won’t function if he is not flexible and remote or has a few other form of difficulty. You have to choose a wedding photographer who is able to create a smile on anybody’s face. This can make the wedding photography and video appear much more pleasant and wonderful.
Practical and Helpful Tips: Events
Nearly all wedding photography and video come in a wide selection of plans, from which you can pick based on your money. You should evaluate the asking price of each offer and select one that meets your financial plan best. In addition to the price, you have to examine the wedding photographer, the class of their collection of work, and previous records. Lastly, your wedding shooter mustn’t be too rigorous about the schedule. Be guaranteed that the expert doesn’t have any prior appointments and will be available to do the task on your big day. Whatever the time frame of your wedding, he has to be available to cover the whole event.Why not learn more about Services?