The seller is compensated upfront for taking the property off the market for the duration of the option period (which may be extended by rendering additional option consideration).

Put them on notice that if they break their lease they will be held responsible for the duration of the lease.

Inflation will erode the value of the note, but if you decrease the duration with balloons and roll the notes over your yield will be handsome without the real estate headache.

From what I heard it can hurt your credit score for the duration you have a balance.

@Jon Tyler offered a good explanation; you have to prepare them that your costs increase beyond your control; things like taxes, HOA fees, utilities you might include in rent, insurance - those can all go up in the middle of a lease, and when that happens, you are "behind" in the rent charged for the remaining duration of the lease.

The one issue with that form for the reserves is determining remaining life; you'll notice that the remaining life duration is left blank.

Depending on the size of the project and duration.

Depending on the duration and depth of the next recession will see if this means anything.

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)  My engineer walks the site and meets with me in person and reviews all the plans, plus he makes 3 visits throughout the duration of the project to check framing, fire assemblies, etc. he's a structural engineer and would never take a risk that would lose is professional engineer license. we are hands on and he's local to my market.

There are a few reasons that we ask for things like lease term (so your tenants can set up auto-pay for the duration of their lease, for example).