Realistically, (If I understand correctly) sounds like he's got a lot more skin in the game and you are gambling a little because you don't have much experience. 

I know in our market were just the building permits per house/ unit run 40 to 60k each..  5k to me just is trying to lock in the buyer so the buyer has some skin and just does not tie something up with no consequences if they back out.. 

They have more skin in the game then you do.Make sure you get clear title.

The president of the franchise stated that one way the developer can get some skin in the game is that they charge 3-5% of the total project cost as a developer's fee. 

They have more skin in the game then you do.Make sure you get clear title.

The counter proposal I have in min is to have a structure inspection and ask the seller to carry a note 15K so that he has some skin in the game and not totally screw us up. 

If the bank has more "skin in the game" and has taken on more risk for repair costs, which add equity to the home, do they ultimately provide less than the typical 70-80% LTV ratio on the new appraised value on the home when you are looking to refinance? 

This allows the seller to get most of their money and keep a little skin in the game to help you get to the closing table with higher leverage.

it's the RoundUp....Got a skin rash?....

However, just read lenders are becoming a little more cautious of the whole BRRRR method because if done right the owner has 0 personal funds in it and if it starts to go south it’s easier to walk away with no real skin in the game.