Even the HML wants you to have skin in it plus some of the cash to do the repairs.

The whole point of this to make sure the borrower has skin in the game.

Your security deposit is the only thing that protects you and gives the tenant skin in the game.

@Hector Perez,Most experience investors will want to know how you will repay them and what will protect their investment plus how much skin you will have in the deals...Joe Gore

Most investors want to know how safe their funds is when they invest with you and how much skin you will have in each deal.Joe Gore

The seller wants 200,000 to be hands off and have the loan income stream on top of it.If you get a private investor to put 200k down you will have no skin in the game.

You have no margin for error.You need thicker skin in this business.

In either case, I'd expect them to want you to have "skin in the game" with a reasonable sized down payment (in addition to their points and interest).If you're talking about getting conventional financing to an LLC, you're going to find that next to impossible unless the LLC itself has good credit history.

We are a hard money lender and we require our clients to have 20% (plus closing cost) and most HML's I know require the client to have some "skin in the game".

You will need to be thick skin some will be willing to talk with you and others will not.