Preparing for a second property

[Jonathan Martinez]

Hello BiggerPocketeers! 

I was in the works of acquiring a second multi family property through a creative way of financing it. First, the seller (relative) would have held the note for 20% for 24 months while I acquired a hard money loan for the rest. The numbers would have worked out that way, I would refinance and payback the note and the hard money loan. However, the hard money investor backed out due to "not having skin in the game". 

Any advice on what happened here? I thought that if I had the 20%, there wouldn't be any issues. 

Thanks in advance!