A Better Knowledge on 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.
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. When there is a credit tenant that will rent a property then the lenders will have a special financing provided. This is the kind of special financing that focuses on the value and the tenant in its lease payments in the future. The focus of the investment grade tenants is not on the credit of the landlord or the real estate.
The rating of the tenant will as a matter of fact be the basis of the lenders of investment grade tenants. To sell the institutional investors and securitize the loans is the reason why this is done. The most important thing that 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. 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. To be able to refinance the property or even buy a property are some of the options that they have for the loans. 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.
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. The lender that has an investment grade credit tenants now has the power to be able to sell and lease to an investor. What happens now is that the property owner will be able to earn cash on favorable terms. They will also be able to have a higher loan to value. When it comes to the traditional real estate loan, you will actually not be able to find this in here.
For the property owners that are in need of the loans at the soonest possible time can in fact avail of the investment grade credit tenants. The investment grade credit tenants will be able to bring them a great deal of benefits.
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