On the race subject, personally, I believe if an individual is skeptical of you because of the color of your skin than there is nothing you can do to build credibility with this person. 

In addition, HMLs will charge you interest per month (holding costs) ranging anywhere from 9% - 18% along with "points" (origination fee) - 1 point is equivalent to 1%.With that said, nowadays, most HMLs require you to have some type of "skin in the game" or a downpayment on the loan so the HML doesn't have to take on all of the risk.

I am not an agent and I don't have any "skin in the game", but there are a few properties out there that could work for somebody that has cash and time.

Good post, I agree with you, i do believe a correction is coming, but with investors now having to put more skin in the game and not being able to drive up prices like they did years ago with no money down products and loose lending requirements, i dont think it will happen this year maybe 2 or 3 years down the road and that also depends on what region you are talking about, we didnt really feel the crash out here and we didnt experience the double digit appreciation either , i wasnt thinking of selling when i refinanced, a few months after i did it, my tenant moved out so that got me to thinking about changing my goals, i was in a 6.15 30year loan still paying pmi, so the fixed 15yr @ 4.375 was a better deal for me, and yes counting on appreciation is not good because its not guaranteed, i may end up keeping it because I like the idea of having it paid for in 15 years.  

I have had cases where on paper someone has bad credit due to divorce or illness but has glowing references from previous landlords.

Should I contribute some capital to have "skin in the game"?

The sellers are selling their homes for full market value (no realtor commisions), and enjoying fair market rents from a lease option buyer who's been talking to a mortgage broker from day 1 (and has a little bit of nonrefundable skin in the game).

I'm pre-qualled for a conventional loan with 20% down, so I have some skin in the game.

Most lenders like to see you have some "skin in the game" , so may need a down payment and some closing costs at the very least - however , there are still opportunities to wholesale or bird dog which does not require down payment money but may be a lot more difficult without a marketing budget.

There's a lot of ways to skin s cat with the virtual stuff.