What Has Changed Recently With Properties?

| January 28, 2017 | 0 Comments

What Is An Investment Grade Tenant

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. The rating that is given to each company is determined by several agencies.

When you are talking about credit rating, you will be able to see two kinds of categories. The rating of BBB to Baa3 is considered as an investment grade. The moment that it will not get pass this rating then it is considered as not investment grade. The credit that you have once you will get an investment grade rating is that it has a lower chance for it not to get paid. 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.

There are a number of big and medium size companies that are already having 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.

The moment that the owner of the building will have credit tenants, then he will be ensured that he will get the payment every time as the business continues. There is a higher property value the moment that a credit tenants lease your building. You can definitely get this especially if the lease that they have is a long term. 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. The tenets in the other hand will also have better control of the property without thinking much of the landlord. The building will have a lower rent once this set up is used.

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. In completing the exchange, there will be an investor’s guide.

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 responsibilities will be carried out by the tenant and not the landlord.

Source: http://www.thefinancialfairytales.com/blog/2016/12/3-brilliant-tips-becoming-landlord/

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