I like to think of location grades as a kind of risk score similar to what a FICO score or bond rating is to a consumers creditworthiness or bond default risk. 

And if the buyers are credit worthy, the interest is a nice addition to their retirement income. 

There is a Brand New Retail Space in my community which I would like to buy and then rent out to a credit worthy Tenant.

Hi William,In answer to question number 1,Yes a longer lease term is generally more valuable and looks better on the balance sheet as long as it is with a creditworthy tenant and the lease rate is at or above market values in your area.

Almost always you will have to give your personal guarantee.Most loans obtainable by real estate investors are based on the value of the property offered as collateral and the creditworthiness of the individual owning the property.

Your question is perfectly legit.The way that it works is as follows: you establish credit worthiness (credit score, income, paying all bills on time and such).

Forming an llc really won't benefit you much in the short term and creates challenges with credit worthiness (it takes a minimum of a year to even be considered for credit as an llc).

There are rules on how much banks can loan and if they reach it and have lines of credit open they could cancel it. 2 The bank no longer thinks you are credit worthy 3 the market drops Basically if the bank decided to they can.

Also the 70% rule is going to vary by market, if it has an option to purchase the buyer may want to know how credit worthy the option holder is because it may influence their decision on whether to include repairs in their analysis. 

@Kevin Ryan Commercial loans aren’t based on your personal qualifications and credit worthiness, although you do need to be, but are based on the net operating income (NOI) of the property itself, the area and property itself.