In any other deal a lender is going to want to see "skin in the game".

I would need skin in of 10%.

Any attorney is also skinning you to execute a lease or an option, would you take a standard purchase contract to an attorney to simply execute it?

Some will want some of your skin in the game, some would lend the $65K.

In conclusion, I would still look in the hood for the right deals, you just gotta have thick skin!

Shell out 10's of thousands to a turnkey seller, who has no skin in the game, and makes his/her money up front, will pass the buck and give excuses should things go wrong, or shell it out to a local investor, who has found the property, has their own $$ in the deal, and doesn't want a foreclosure on their record.Then there are joint ventures, discounted mortgages, a whole bunch of ways to make cash flow.

(This is my first income property analysis, so be gentle…LOL)Asking price- $130,000Down Payment $5,000 (3.85% I know not much skin in the game)Required maintenance $0 (I am not naïve enough to believe this, but haven’t gotten any concrete data to refute this claim (By the owner).

One of his ideas was to break the loan into somewhat 2 loans: The first being a % of the Down Pmt that is personally guaranteed and will be paid off first giving owner the 'skin' in the game so to speak...Its all wrapped into one but a small portion is personally guaranteed.He said he didn't need money down either but when you get down to it, putting a little down solves the problem.

If you consider it you should require they pay 4 months in advance.This will cover them paying the first months rent,time to immediately evict them if they violate a provision in the lease,and cover paint and carpet again.If they violate the lease for any reason all the money paid upfront is NON-REFUNDABLE.Don't just stick a tenant in there to put one in.Make them meet extra security demands or wait on a better tenant to come along.You have to make a tenant like that have a bunch of "skin" in the game.They may or may not have reformed themselves and if they have they should not mind putting extra down.

i dont know of any banks allowing a seller to hold your downpayment...not saying its not possible, but most want skin in the game....good luck and let us know :)