Borrowing Downpayment, closing costs, and earnest money

[Darrin Carey]

As a private lender, I'm suddenly getting a lot of requests for three things that concern me.

1. Lending the Downpayment (behind another hard money lender)
2. Lending all the borrowers closing costs
3. Lending funds for putting up earnest money

Personally, I think putting up money for those items as a lender is EXTREMELY HIGH RISK. Out of 500+ loans I've done, only a very few have had problems.
Every one that had a problem had one common feature, the borrower had little to none of their own money in the deal. (Early ones, I didn't know better. The couple recent ones, the borrowers lied about it, and I found out later. Those borrowers made the forever banned list. Not because the deal went bad, but because they lied about the source of funds, and ghosted everyone went the rehab got hard)

Is there someone out there teaching this as a strategy to borrowers and potential lenders? 
Are people really making these loans? AND getting paid back?
Am I missing something here?

Darrin Carey

[Darrin Carey]

Quote from @Eliott Elias:

You should feel good about lending on 100% of costs for repeat business with a good track record, other than that stay away from new investors who want no skin in the game. 

A repeat business with a good track record should have no problem with having some skin in the game. If they don't have that ability, it makes me wonder how good their business really is, and what'll happen at the first hiccup.