I prefer just to make the kill and leave the hauling, skinning, and dressing to the butchers.

Banks do like for you to have some skin in the game so the decision to walk away is tougher for you.

Both have 5 wheels, 4 on the ground and one in front of the driver's seat :)Don's example is a bit bigger of a deal, but the skin in the game point applies.I also suggest you not rely on ratios or rules for rents to a purchase price to base a contract on, you need to learn how to put a pencil to an offer.

This forum post involves a chunk of cash that is unrelated to those business plans, and is basically more of an experiment in snowballing an investment fund.In Portland or Los Angeles, 20k is going to get me skin in the game on a hard money loan to flip a condo in a low end neighborhood that will net me a 5k profit in 2-3 months.

The point is to give people an out while still making sure they have skin in the game.

It cost us 5 digits to walk away but got out by the skin of our teeth.Lesson: Run your deals at YOUR pace and NOT your agent's.

As a borrower, we like to have control of our properties and if you have no skin in the game, where is the argument to put title in your name?

Especially considering that the investor knows that you'll have a strong incentive to keep the property cash-flowing, With that said there are so many ways to skin a cat and structure your investor deals.

you can get a PL to do a deal for a first timer, IF you have good credit and put a lot of 'skin in the game'I'm assuming your planning on flipping, remember the lender is the one taking risk, will you do what you say, is the deal as good as you say it is, will there be unanticipated problems (yes, especially on your first rehab, but on most rehabs) etc etc, you have to give them a reason that you won't just walk away if problems come up,,if you have a lot of money in the deal, you would be less likely to walk away, if you have good credit, you don't want that messed up.Don't give up, but find out what a PL would want in a particular deal,,then work to get that cash/experience

Even with a nicely cash flowing property they want to be sure we've got our skin in the game.