In addition, some sponsors would rather take equity than an hourly management project fee to keep skin in the game for the sponsor or the upside is higher for the sponsor, some sponsors want to take fees during the project to get paid and some are only fee based and have very little equity in the deal.

I have very think skin and can take constructive criticism.Thanks a lot!

@Weis Sherdel  if it is just a skin in the game issue, then it becomes much more simple, just base it on the numbers. 

Main line banks have underwriting standards that they expect you to have skin in the game when it comes to each investment deal.

In that instance you should probably have more insurance or setup stronger liability protection as you have more to lose than someone who has little skin in the game. 

Does it make sense for Friend A to put some money into LLC to have some skin in the game as well? 

You gotta have some skin in the game RR

@Federico Gutierrez For me personally, The things that you mentioned that needed to be replaced or fixed are just the cost of doing business or "additional skin in the game".

Originally posted by Ejaz Syed:Guru's I joined this forum today and read through a couple of postings all of them are extremely interesting but what I did not understand is how can you RE- Sell property without investingFor a new investor like me do you guys have any suggestions on where I should acquire more basic knowledgeI have just moved to the DFW area from VA ThanksEjazJust mess'n with ya some, you need thick skin in RE and a sence of sick humor....Ned gave you the low down, buying without money though is not quite right.

As has been discussed before on here investors are leery when one doesn't have skin in the game.