Basically, conventional institutions want you to personally have skin in the game.  

According to Freedom Mentor, this deposit is to ensure you also have some skin in the game and covers cost of some of the systems they have.

Do you have cash to put into the purchase (skin in the game)?

You have to be pretty tough-skinned, even more than for landlording!  

I am a clueless investor and I do say that seriously because I'm from NYC but I have been doing my analysis, study, physical drive around, research and talking to other Newark investors and came to the conclusion that if you purchase multi family for 30-40k which there's plenty at that price on the MLS and fix it for 60k then section 8 all the apartments, that's cash flow with a fast payoff. this is the strategy that I have focus on that will work in Newark, any other strategy I would not advice.Again you have to have thick skin cause is in the lower class areas but last I check, money has no class standard.

I imagine any politician who actually had skin in the game wouldn't be out there saying that we need to make felons, sex offenders, jerks, slobs, etc. protected classes.

Not really sure how to do it.So for example, I bring in 5k for skin in the game with an agreement that I will manage all properties for a fee and handle repairs and maintenance for x amount of equity a year toward the properties.Does that sound like it would work?

Was a tough phone call to make, but I guess I'll need to develop thicker skin.

I have heard and read a number of times around here that I can find funding to come to the table with the rest of the funds to close the deal.I'm fine paying closing costs and lawyer fees and I consider that to be skin in the game.

the in control person :) should to be happy to help you because they may have to bear the brundt of it ALL.Try to get a solution who is irritated and offer them to move with no penalty and good report to next landlord. then if that doesnt look like it will work: Say you know I have to say I would like all of you to leave if you are not happy.Here's your notice to move-60 days----Peace out orEvict THAT PERSON AND all of any unknown tenants altogether, As Unknown Tenants.Settle by them all signing a master lease FOR THE WHOLE RENT all tenants responsible as a SECURITY DEPOSIT with respective amounts also individually agreed.Take the girl issue with her alone in the house what did she pay--what portion...offer in court to the judge. after you have filed the eviction on all of them.