Question answered by student Jay from Mammoth Interactive’s Legend of Zenda game development course
When I follow the steps to make the sword it still rotates around the center of the object and not near the handle.
You didn’t do anything wrong, the solution is quite simple. Check your settings. Next to the modifiers of the objects, you’ll find a button that switches between Pivot and Center:
If you have “Center” active, your sword will rotate around the center. When you click on “Center”, you’ll change to “Pivot” and the sword in the editor finally behaves as you want it.