As with any loan, of course there will be a max you can borrower based on your credit, income and other debts.If you change the home you want to buy or the amount you want to buy, yes, that could change your approval because after all, you changed the collateral.

For example, yoy take management at 10% which is earned from running the business, that is an expense to the seller, but he can become inactive as well.In the ops agmt, the new guy can pledge collateral and buy say 30% of the seller's equity, note for shares/interest.

But you will need to value the collateral, due diligence will include knowing real estate and some financing laws as well as business principals.Depreciation and losses in RE may not be a great benefit for you, you need to speak to your CPA and see what type of business entity might suit your needs best, espcially for long term savings.You need to do some studying, from the basics first to build a good foundation for RE investing.

Banks don't make loans that just based on collateral, you will need to have credit, income, etc.

This is a business loan to the LLC, and not collateralized.  

I'm still working on the idea that we have a significant amount of collateral and would compensate them for doing their due diligence.

2) Business Loan- Assuming my credit sucks (though it is about 700) can I take a loan and use the property as collateral to make it easier to be approved?

The reason I think this is a little different then normal is that there is no home as collateral for the loan as it is just covering rehab costs.

-IRA borrowers must hold an additional 10% of appraised collateral value in IRA account at time of closing

The IRA could lend to others with similar returns, collateral, and terms.