Smart Tips For Finding Tenants

The Basic Guide to Investment Grade Credit Tenants

The first thing that you need to know about the investment grade credit tenants is that this is a special financing offer for the landlords.

The investment grade credit tenant is a kind of company that is able to have an investment grade rating from the rating agency. When there is a credit tenant that will rent a property then the lenders will have a special financing provided. 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 focus of the investment grade tenants is not 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. To sell the institutional investors and securitize the loans is the reason why this is done. What you need to know about the investment grade is that the rating has to be at least BBB-. There is one thing that you need to know about the investors and that is the fact that they would gladly invest in similar products and bonds as well. As a matter of fact, the states and cities rank as well as participants in the investment grade credit tenants.

Most of the time, the landlords that have investment grade credit tenants are able to avail of long term loans. They can make use of the loans to refinance the property or purchase a property. When it comes to the loans they can actually be structured in a way that it will now be non recourse to the owner of the property. This will mean that the threat of personal liability will be removed. The main reason why it is possible is because of the fact that what the underwriters will do is that they will be relying on the lease value.

The investment grade credit tenants also has the option to be able to obtain direct financing. The best way in order to be able to avail of this is to be able to enter 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. They will also be able to have a higher loan to value. What you need to know about this is that you will not be able to find this in the traditional commercial real estate loan.

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. There is a great deal of benefits that people can enjoy with the investment grade credit tenants.