Financial

A Beginners Guide To Resources

Tips on Selecting an Investment Grade Tenant

When buying a single tenant leased investment, the financial ability and the quality of the tenant is very vital because in essence the person is purchasing the income source and the bundle of rights that is subject to the leasehold and the investor needs to evaluate the tenant as being investment grade. Doing an investment analysis grade of the tenant enables the person to make a logical assumption that the landlord will be able to get their monthly rent for 20 years and they can do this analysis by asking the market to rate the risk for them.

When assessing credit ratings, there are acronyms used to evaluate the various tenants and most sound investment grade tenants have a rating of BBB or better. The credit ratings depend on various factors such as the likelihood of payment which is the capacity and willingness …

Learning The “Secrets” of Properties

The Advantages of Getting Investment Grade Tenants

If you own a property and offer it for rent, then you should consider seeking investment grade tenants. Investment grade tenants offer landlords numerous financing options they can choose from.

Investment grade tenants get to receive an investment grade rating from any rating agency, and they are usually big, reputable companies. Rather than focusing on the landlord’s credit or the value of the real estate when lenders provide financial assistance, they now make sure that it is based on the credit tenant renting the property as well as the value of his or her lease payments in the succeeding months.

So, what is investment grade rating?

With investment grade ratings, credit tenant lenders will be able to determine if the tenant can get loans and sell them to other investors. Investment grade simply means that you have reached a minimum rating of BBB-. …