Most HML's expect their borrower to have some skin in the game.

The intent of the "down payment" protects their interest in the property, giving them a buffer with your equity,  and shows them that you have "skin in the game."

I'm still green to this and aside from owning my own home now for 13+ years, I'm ready to put some skin in the game.

I would advise someone just starting out to partner with an experienced flipper or contractor who is willing to put some skin in the game (they can pay for the rehab cost or defer their payment until the property is sold or completed in exchange for some equity).

From what I've experienced and what my mentors have advised me of is that if there is no skin in the game, there is nothing to lose and you don't want to be in business with someone who has nothing to lose.

That's the great thing about real estate, there's a million ways to skin the cat.Regardless you can put in those terms in all of these scenarios if you are writing the contract.  

. $500 for only 2.5x rent and $1k for an eviction)You may still screen out a lot of folks this way, but the folks you keep will have more skin in the game.

Not only does coming up with the money for a security deposit show some level of responsibility, it also gives the tenant some skin in the game.

The only challenge is that we don't have any 'skin in the game' when it comes to REI.

I have found, I made the best decisions when I has skin in the game.