Commercial Mortgage Loans – The Benefits of Credit Tenant Lease Financing
CTL, also popularly known as Credit Tenant Lease Financing, is a simple yet specialized type of commercial mortgage loan designed to offer funding for construction, purchase, and refinance of real estate that is NNN (Triple Net Leased) to tenants with good credit. With the aid of CTL loans, it becomes easy to give loans because the lease and income it guarantees are the main collateral behind the loan.
Benefits of Credit Tenant Lease Financing
- Biggest Loan Amounts – There are usually no restrictions on the side of CTL lenders on loan to value and they lend almost up to 100% LTV. In addition, there is no loan to cost for construction loans. The only concern with this loan is that the rent collected must cover the entire mortgage payment.
- The speed of Handling a Task – Compared to any other bank loans or commercial mortgages, CTL is a much-modernized From start to finish, the entire process is closed in 60 days.
- Non-Recourse – The fact that CTL loans are nonrecourse is very much appreciated by property owners. The lenders won’t run for their money after borrowers if things don’t fall into place all because the lease is
- Long-Term Financing – The term of the lease is usually equivalent to the term of a CTL loan. Many tenants agree to sign 12, 15 and even 30-year long leases. Basically, CTL loan is the last kind of loan an investor will ever require.
- Steady Price, Self Amortizing – The rates of the CTL are fixed for the entire life of the loan. The investors can plan ahead because they know exactly how much their loan is going to cost them until the end. A CTL mortgage pays the loan itself during its loan term, therefore, the investors do not have to worry about balloon payments at all.
- Construction Financing – Majorly of the lenders have considerably diminished construction and production money, but CTL capital is always available for handling the funds for construction of buildings.