In this episode, Adam Carswell and Michael Flight discuss credit ratings and what it means to be an investment-grade tenant. They share what a credit rating is and how to evaluate whether a tenant is a good fit for a net lease property (i.e. investment grade). Michael and Adam emphasize how Triple Net real estate is a better investment than bonds, as well. Michael also explains the importance of evaluating the government type, government temperament, and government regulations surrounding a Triple Net property for the acquisition criteria. They wrap up this episode with Michael explaining how the brand affects the success of a net lease tenant.
Timestamped Shownotes:
00:30 – What is Triple Net (NNN) Real Estate and what are the benefits of Net Lease Investments?
03:09 – Why are ESG investments so popular for institutional investing at the moment?
03:30 – How can state, municipal, and national government impact an investor’s acquisition criteria?
05:57 – Why is it essential to evaluate the government type, temperament, and regulations for a Triple Net property?
07:05 – What are the three most important factors in Single Tenant Net Lease (STNL) properties?
07:57 – How are Triple Net (NNN) property investments like bonds wrapped in real estate?
08:16 – How are credit ratings, like investment-grade, established for business tenants?
09:15 – What is a credit rating?
10:17 – How does a credit rating affect the price given to a net lease tenant?
13:20 – What does an investment-grade rating indicate to investors and how can they recognize them?
16:50 – What is an example of a bad investment tenant in the current economy?
18:54 – What are some of the highest investment-grade tenants to invest in for Triple Net properties?
19:40 – Why is real estate a better investment investment than bonds?
22:39 – How do real estate investments combat inflation better than bonds?
24:01 – What is the difference in return ratings for real estate investments versus bonds and municipal bonds?
25:52 – How does the brand affect the success of a net lease tenant?
Key Points:
1. Benefits of Investment-Grade credit rating for Single Tenant Net Lease (STNL) investment tenants
2. How to Evaluate the Credit Ratings of Triple Net property tenants
3. Net Lease investments have tangible and intrinsic value as a hard asset
4. Single Tenant Net Lease (STNL) investments like bonds wrapped in real estate
For more information contact us here and mention Nothing But Net or simply NNN:
For more information on:
Liberty Real Estate Fund LLC (https://libertyfund.io/)
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