Therefore, it did not make sense to foreclose on these assets, nor keep them at a surface.

You have to have some skin in the game or else why would anyone risk their money on you?

When these posts surface there are two camps who chime in.  

BUT, the shingle manufacturer requires a nailable surface, which a rotted wood board is not, so they are required to pay for it under that.

I have had this situation come up several times this year, in multiple states, Lenders want to have the borrower have skin in the game at this point in time. 

For instance, with STRs, why won't an investor spend an hour on AirBNB for their area to identify listings that:1) rank the highest2) occupancy 95%+3) ADR $750+4) hosts have 2+ properties5) listings are branded with 20k+ Instagram followersetcThen, reach out to those top operators; as many don't have the time or gave up on cold outreach, yet they've done the hardest 90%, have skin in the game, and outcompeted thousands of listings nearby.

There could be reason behind this, but on surface, this is low.As noted above, severely negative leverageNo stated pref, so I am assuming the 80/20 split happens right awayProjected returns are okay.  

I’m frustrated and getting mixed suggestions from family/friends who think they are experts with no skin in the game.

The tenants have skin in the game so wont mess up (e.g., not pay rent).I'm sure you'll get it rented soon; but just wanted to share an outside-the-box option that was successful for me.

First two transactions client is required to bring in 10k so they have skin in the game then once model is proven  JLH capital provides 100% funding for purchase and if there is rehab 100% of rehab.