Crucial Facts 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. This is the counterpart of a credit store. There are several agencies that determine the rating of each company.
In a credit rating, you will be able to see two categories. 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. 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. It is when you have a credit tenant in your building that the property value of it will increase as well. If the credit tenants have a long term lease, then you can definitely get this advantage. 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. The tenets in the other hand will also have better control of the property without thinking much of the landlord. But the landlord must also know that this set up will have lower rent.
It is when you are a building owner that you should make sure that you will consider the credit strength of your tenant. 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. It is the loan term that will also match the length of the lease. The landlord will not be thinking of anything as the tenant will carry the responsibilities.