The Importance Of Investment Grade Tenants
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. If you are looking for a financing option that is superb, this is the right one for you. What this article talks about is the investment grade tenants. This is a company that has an investment grade rating. The good news is that many lenders these days are providing specialize financing to the credit tenants out there. 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. The financing option does not depend on the credit of the landlord as well as the value of 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. The other reason why you need to do this is for the loan to be sold to the institutional investors. 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. The good thing with this is that loans can also be structured depending on the need. The good thing with this is that you will no longer have to worry about personal liability threat. For the underwriters, they would depend on the lease value of the real estate.
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. Your investment grade tenants allow you to get more potential investors to the properties that you are selling. There are also some investors, on the other hand, who would want to rent the properties that you are selling. 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. However, you need to be aware of the credit tenant lease terms. By knowing this, you can know what your responsibilities are that are different from the institutional providers. 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.