Net Lease Real Estate

As far as net lease real estate is concerned, the credit rating of the tenant is quite significant. A tenant's credit rating is indicative of the likelihood the investor will be able to collect rent over the length of the lease. The tenant's credit rating will also influence the interest on debt used to purchase the property--the better the credit, the lower the cost of borrowing money.

Many factors combine to influence the credit rating of a tenant. Such factors as the length of time in business, the largest amount of credit received, and the debt owed are considered. Also influencing a tenant's credit rating are any amounts that are past due and the methods used to make payment. Other information may be used in determining a credit rating as well.

Credit rating services have the task of evaluating and determining credit ratings. Information provided by credit services is used by businesses in deciding whether or not to offer loans or credit to other companies. Additionally, credit ratings can also influence the ability of an entity to sell company bonds.

At TM 1031 Exchange, we have experience working with investors of all types. We understand the need for investors to secure net lease arrangements with high-quality, high-credit rating tenants. We seek to make locating the right net lease investments not only possible, but also easy and quick. Call us to learn about our extensive property database and our independent National Referral Network. Request information by phone by calling toll-free at 1-877-4TM-1031 or by sending e-mail info@tm1031exchange.com