What You Need To Know About Investment Grade Tenants
It is the large national companies that issue public bonds are the ones that are also given credit rating. Some have credit store and this s its counterpart. There are several agencies that determine the rating of each company.
There are basically two categories when it comes to the credit ratings. The rating of BBB to Baa3 is considered as an investment grade. It is by not reaching the former rating that the credit rating that you will get with your company is a non-investment grade. 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. It is the agencies that give out the rating that constantly checks the financial status of every company and the rating will change over time.
An investment grade rating has already been given to a number of different big companies as well as medium-sized companies. The moment that these companies will lease a property, then it is called as credit lease and the tenants that leased the property is called as credit tenants.
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. There is a higher property value the moment that a credit tenants lease your building. It is this advantage that you will get the moment that your credit tenants will have a long-term lease on your property. The insurance, operating expenses, taxes of the property can be handled by the tenant in what is called as a triple net lease which is an added benefit to the owner of the building. 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. Before the bank lends you money, they will first check the credit score that you have especially for your investment property. It should be that the exchange will not be difficult. There is an investor guide that will take help you in completing the exchange.
It is the institutional investor that will provide the credit-tenant financing and they will not often have any obligations with regards to the landlord. 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.