Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

it is technically a real thing but very rare, and there is plenty of historical data out there that shows those who have less skin in the game are at a far greater risk of default by a factor of 5-7x.

The hurricane exacerbated the already long permitting timelines but the city was working on hiring more inspectors and others in the building department to keep up with the building boom we've seen over the last several years. 

I personally like one sponsor who has been through multiple real estate cycles without losing any investor money, puts very large amounts of skin in the game, is conservatively leveraged and has a very good 1031 exchange program.

They wouldn't have any skin in the game and could just walk away and leave you high and dry if things go wrong with the property.

A borrower really needs to have at least some "skin in the game" to make lenders feel comfortable.

As a 3rd-party real estate consultant that has no skin in the game other than what I charge, I provide exactly what you've described—unbiased, no-nonsense, and straightforward advice.

Sometimes they don’t like that because you don’t have skin in the game.As for advantages to the seller - are you going to pay them more for the property, that would be a perk that I offer in addition to making a little extra on interest for the duration of the loan.

Most seller finance notes have interest rates in the 9-10%+ range.Also, 5% down is very little skin in the game for the borrower.

One of my favorite authors, Nicholas Nassim Taleb, sold me on the concept of Skin in the Game and holding all pundits accountable for prior predictions, myself included.