They want to see you got some skin in the game per-say.

I was thinking if I used my own money it would show I had "skin" in the game but most of the national groups have already said they are not interested.  

Now, you at least have something to point to in terms of experience when the HML folks ask you for it for the run down shack you want to flip.The alternative is that if your down payment is big enough relative to purchase price (not ARV), there's always someone out there that'll finance it because your substantive skin in the game (way more than 20%) means the HML is in a "can't lose" position.

:PMake sure their 'skin in the game' (eg, down payment) is enough that you're in a "can't lose" position even if you have to foreclose. 

I propose taking his offer and making the following changes: •90/10 investment (he pays 90, you pay 10) -so you have some skin in the game.

You could also find people that do have the money and would be willing to put their money down but then you run into the problem where you can't put any of your own skin in the game and are a new investor as well.

The last message I felt almost racial abused since he is questioning us based on our skin color??? 

Most lenders want you to have some skin in the game so you will be committed to the deal and more encouraged to make it work. 

This of course assumes you have your own skin in the game by having installed LED lighting, water saving toilets, watersense rated fixtures, energy star compliant appliances, and have inspected your piping for leaks.

As they say, there's more than one way to skin a cat.