Finding Parallels Between Investments and Life

The Basic Guide to Investment Grade Credit Tenants

The very first thing that you should know about the investment grade credit tenants is that this is a special offer of finances for the landlords.

Another thing that you need to know about the investment grade credit tenant is that this is a company that receives an investment grade rating from the rating agency. A special financing will be provided by the lender when there is a credit tenant that will rent on a property. It is actually on the value and the tenant in its lease payments in the future wherein the focus of the special financing is placed. The investment grade tenants does not focus on the credit of the landlord or the real estate.

The lenders of the investment grade tenants will based on the rating of the tenant. The main reason as to why this is being done is so that it will be possible to sell the institutional investors and securitize the loans. What you need to know about the investment grade is that the rating has to be at least BBB-. Investing in similar products and bonds is as a matter of fact what a lot of investors would gladly do. The participants that are able to rank in the investment grade credit tenants are the states and cities as well.

On the part of the landlords, if they have investment grade credit tenants it would mean that they can avail of the long term loans. When they have the loans, they have the option to be able to refinance the property or even buy a property. The loans can also be structured in a way that is non recourse to the owner of the property. What will happen if one will push through with this option is that the personal liability of the landlord will be removed. The underwriters will be able to rely on the lease value which is why this can be possible.

There is another thing that the investment grade credit tenants can do and that is to be able to have the direct financing obtained. The best way to be able to do this is through the entering of the sale leaseback transaction. To be able to sell and lease to an investor is what the lender with an investment grade credit tenants can do. On favorable terms the property owner will be able to earn cash. A higher loan to value is as a matter of fact what they can also have. When it comes to the traditional real estate loan, you will actually not be able to find this in here.

The investment grade credit tenants can actually be availed of by the property owners that are in need of loans at the soonest possible time. The investment grade credit tenants will be able to avail of the benefits.

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