The Importance Of Investment Grade Tenants
There are so many things you can learn about investment grade tenants just by reading this article. 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. 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 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. 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. 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. 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. In fact, there is also a chance for you to structure your own loan. 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. You can actually sell properties to a potential investor if you have good investment grade tenants. In the same way, it can also lease the property. So if you have properties to rent or sell, this can surely help you earn a lot of money. So if you are a landlord, this is good news for you because this has become the best than other options out there. 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. This will be the responsibility of the tenant which the landlord can be freed from the burden.