A Better Knowledge on Investment Grade Credit Tenants
The very first thing that you should know about the investment grade credit tenants is that this is a special offer of finances 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. 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. Actually, the focus of these investment grade tenants is not on the credit of the landlord and not on the real estate as well.
What you need to know about the lenders of the investment grade tenants is that it will based on the rating of the tenant. To sell the institutional investors and securitize the loans is the reason why this is done. A rating of at the very least a BBB- is what you need to know about the investment grade. Investing in similar products and bonds is as a matter of fact what a lot of investors would gladly do. 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. When they have the loans, they have the option to be able to refinance the property or even buy a property. To be a non recourse to the owner of the property is one way to be able to structure the loans. 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.
To be able to obtain the direct financing is as a matter of fact what the investment grade credit tenants can also do. The best way to be able to do this is through the entering of the sale leaseback transaction. What the lenders with the investment grade credit tenants do is that they can 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.
Therefore, the property owners that are in need of loans as soon as possible can avail of the investment grade credit tenants. There is a great deal of benefits that people can enjoy with the investment grade credit tenants.