Monday, September 21st, 2020
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When a landlord is negotiating with a tenant, understanding its balance sheet, cash position and debt load and maturity schedule are key to a successful outcome.
“If they have debt, has the tenant had any conversations with the lenders about potentially extending the period when they need to service it or move interest payments back on the calendar,” says Brad Tisdahl, Principal and CEO of Tenant Risk Assessment.
Getting answers to those questions can help a landlord understand the tenant’s balance sheet flexibility.
“We want to understand how flexible a company’s balance sheet is to ride out the pandemic and the surrounding uncertainty,” Tisdahl says. “When we’re thinking about that, we’re trying to assess whether we’re going to be granting relief to a tenant that may not survive the pandemic.”
The lender’s relationship with the tenant is pivotal.
“We’re trying to understand whether a lender is going to be inflexible,
Photo: Xavierarnau / Getty Images
With the COVID-19 pandemic still going strong, many city dwellers may be considering a move to the country—and there’s a specific type of mortgage that can help make this a reality, called a USDA loan.
Offered by the U.S. Department of Agriculture and backed by the agency’s Rural Development Guaranteed Housing Loan Program, these mortgages are designed to help buyers with moderate or low income purchase property outside cities.
They accomplish this by offering several key benefits—such as low or no down payments and looser qualifications for income and credit history.
“More people should absolutely consider using USDA loans to finance their homes,” says Jan Hadder, regional vice president of the builder division at Silverton Mortgage in Columbia, SC. “If you’re not