A 10-Point Plan for Tenants (Without Being Overwhelmed)

A Basic Knowledge on Investment Grade Credit Tenants

A special financing offer for the landlords is what is called as the investment grade credit tenants and this is what you need to know first.

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 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. This is to make sure that the loans will be sold to institutional investors and securitize the loans. A rating of at the very least a BBB- is what you need to know about the investment grade. 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. It is actually the states and the cities that are the participants that have ranked in the investment grade credit tenants.

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. 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. At the end of the day, pushing through with this option will now mean that the personal liability of the landlord will now 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. To enter into the sale leaseback transaction is as a matter of fact how this can be done. What the lenders with the investment grade credit tenants do is that they can sell and lease to an investor. In terms of favorable terms, the property owner will now be able to earn cash. This also means that they now have the opportunity 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. The investment grade credit tenants will be able to bring them a great deal of benefits.