Crucial Facts You Need To Know About Investment Grade Tenants
Any large national companies that issue public bonds are being given credit rating. This is the counterpart of a credit store. You will be able to see a number of different agencies that provides the credit rating of the corporation.
There are basically two categories when it comes to the credit ratings. The rating of BBB to Baa3 is considered as an investment grade. You will probably get a non-investment grade the moment that the rating will not reach the former. The moment that you are rated as an investment grade company, the is a very low chance that you will not be able to pay out the credit that you have. The financial status of every company is being checked once in a while by the agencies that provide the ratings that is why the ratings will change over time as well.
For the large companies and medium-sized companies, there are already a large number of them that already got an investment grade rating. It is the tenants that made the lease that are called as credit tenants and when they lease a property, referred to as a credit lease.
One sure fact the moment you have a credit tenement that leases your property is that you will get the monthly payment every time if you are there of the property. Once there will be credit tenants that lease your property, the building that you own will have a higher property value. It is this advantage that you will get the moment that your credit tenants will have a long-term lease on your property. An added benefit to the owner of the building which is called as a triple net lease is when a tenant will handle the insurance, operating expenses, taxes of the property. There will be better control of the property on the side of the tenant without thinking much of the landlord. But the landlord must also know that this set up will have lower rent.
The tenant that will lease your property should be considered by you when you are the building owner. When it comes it your investment property, the bank will make sure that they will check your credit score before they will proceed in lending you money. It should be that the exchange will not be difficult. There is an investor guide that will take help you in completing the exchange.
With regards to the obligations to the landlords, the institutional investors is the one that will provide the credit-tenant financing. The triple net term is the one that covers this aspect. The length of the lease is the one that will match the loan term. The landlord will not be thinking of anything as the tenant will carry the responsibilities.
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