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. If you are a landlord, this is good news for you. 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. 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. The financing given would focus on the value of the future lease payments as well as on the tenants. This means that it no longer depends on the value of the landlord’s credit as well as the real estate.
It is important that you have an idea on what investment grade rating is all about. 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. You have to remember that there are institutional investors who like to buy this. There are now a lot of investors that can invest in these products gladly. 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. You can use the long term loan for different reasons such as buying a property or refinancing it. If you want to have a structure for your loan, it is also possible. The good thing with this is that you will no longer have to worry about personal liability threat. What most underwriters rely on is the lease value.
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. If you want, you can also have the properties for lease. 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. Your property can be of higher value than before. However, you need to be aware of the credit tenant lease terms. You have to remember that as a landlord, you have your own responsibility to handle. For the tenants, they have the responsibility to pay for the insurance, maintenance and taxes. This will be the responsibility of the tenant which the landlord can be freed from the burden.
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