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. There are now a lot of financing options for you but what you are reading now is something superb and exciting. What this article talks about is the investment grade tenants. The good thing with this company is that the rating agency has given them a good investment grade rating. The good news is that many lenders these days are providing specialize financing to the credit tenants out there. The lenders, in providing the specialize financing, have to think about the future lease payments value as well as the tenant when it comes to this. 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. If you are a credit tenant lender, you have to ensure that the tenant’s rating is good. This is one of the ways for you to know in details about the loans. 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 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. 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 most underwriters rely on is the lease value.
In order to invest in passive real estate, you can get financing from 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. There are also some investors, on the other hand, who would want to rent the properties that you are selling. So if you have properties to rent or sell, this can surely help you earn a lot of money. That is why a lot of people or landlords these days would prefer this over others. Your property can be of higher value than before. If you consider this, the other important thing that you need to consider is to know the terms used for credit tenant lease. The institutional investors out there will only provide the financing and will not take the responsibility of the landlord. 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.