@Michael Kagan, I always tell people who ask that buying San Francisco apartments is a game of regulations, sweat equity, and you need to have a thick skin and patience.

Both lenders, particularly the conventional mortgage lender want the borrower/buyer to have personal capital “skin in the game” invested in the transaction3. 100% financing, if obtainable, usually result in negative cash flow, which means capital out of pocket from the owner each monthThat being said, “nothing down” purchases are done, but this depends on the definition of “nothing down”.

So a lot of ways to skin this cat, it just depends on the site specifics and the proposed development impact.

Im looking to do my first rehab deal but I am having issues since I have no skin in the game.

You really should have some skin in the game to start investing.

The elements should both be glowing red unless one is not working. 

But also be aware that some banks don’t like that either, they want to see that you have skin in the game.

@Michael WilliamsUnless you have a previous relationship with a hard money lender I think it would be a rare find to get one that will loan to you without you having skin in the game.

I want tenants to have skin in the game.

Syndicate capital from passive investors and you put some skin in the game while putting in a majority of the sweat equity.