I'm technically not raising money from other investors although my parents would have "skins in the game" as their asset will be collatorized

I have heard several times before when a general contractor that is supposed to handle the remodel has no skin in the game and stops showing up.

Many ways to skin the cat :).

This could make the policy invalid if the info surfaces later (during claim investigation). 

Buyers should not be able to go and put in an offer without any skin in the game in my opinion.

Always put primer paint on surfaces that are a noticeable color difference from the new paint you want or you believe will not take the paint well or evenly. 4.

We got a quote from Kinetico which we know is top of the line but it was a bit overkill for our needs (quote was about $6k).Our water is pretty harsh on the skin not to mention can be hard on appliances which we'd like to keep working long term.

If the deal falls apart earlier in the life of the investment, yes, the capital investor stands to lose much more (and yes--the financial scale of deal matters, as you indicate too).I'm assuming that the "worker" probably has a little financial contribution for skin in the game (say, 5k of a 50k down payment), is also sourcing the deal, swinging the hammer, and listing/property managing for as long as the property is held.

Then once I've gotten some skin in the game and some money I can go to a bank to collect some bigger deals

You are asking people to give you money and let you do everything without having any skin in the game.