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.

But it's in your interests to make sure the property value makes sense and the borrower has skin in the game.

The lenders simply are not interested in financing a deal where the buyer has such a small amount of skin in the game.If you don't mind, can you touch on how you were able to obtain the type of financing structure that allowed for a seller-held 2nd mortgage? 

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.

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

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. 

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

People with no skin in the game are telling you it is not hte blue mans fault even based on what you told them. 

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.

I also want high skin in the game, conservative leverage and reasonable fees.Open-door isn't a match for me (and an easy "no") because they don't have that type of experience.