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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. When it comes to having the best financing option out there, this is perhaps the best one you can get these days. Have you heard about investment grade tenants already? You can rely on this company because the rating agency knows its investment grade rating. What makes this superb is the fact that credit tenant these days can be given a specialized financing that the lenders will give to them. 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.

So what should you know about investment grade rating? 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. If you do this, you can check the loans very carefully. This is also for you to be able to sell it to the institutional investors. There are now a lot of investors that can invest in these products gladly. Because of the increasing number of investors you can find these days, it seems like the market has gotten busier than before.

If you are a landlord and you have credit tenants, the good news is that you can get long term loans. This is very important especially if you have plans to buy something or refinance a property. In fact, there is also a chance for you to structure your own loan. With this, the threat of personal liability will no longer be visible. 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. So if you have properties to rent or sell, this can surely help you earn a lot of money. This is so much better than the commercial real estate loan. 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. By knowing this, you can know what your responsibilities are that are different from the institutional providers. 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.

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