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Investment Grade Tenants: What You Need To Know About It
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. If you are looking for a financing option that is superb, this is the right one for you. Have you heard about investment grade tenants already? 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. 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.
It is important that you have an idea on what investment grade rating is all about. It is important that you check carefully the tenant’s rating as a credit tenant lender. If you do this, you can check the loans very carefully. The other reason why you need to do this is for the loan to be sold to the institutional investors. If you do this, they will be glad to invest in products like bonds and more. The truth is that the market is very busy these days because of the many investors that are investing on this.
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.
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. 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. 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. By being a tenant, you have to make sure that the taxes, maintenance and insurance are all paid. The burden will not be given to the landlords.
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