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

The previous LL have zero skin in the game and will often be more reliable.

Now if you use a private lender then it is whatever you can negotiate and get them to agree to.Banks and even hard money lenders want you to have "Skin in the Game" In other words they want you to have some of your own money at risk so if things go bad you are less likely to walk away.

@Calus Glispie the purpose of earnest money is for you to have skin in the game.

IDEALLY I would love to find an investor who basically has been doing this and wants skin in the game but does not want to deal with the head aches of the construction or management side.

You may want to partner with someone local to make sure everyone has skin in the game.

@Joseph GarnerThe more skin in the game you have, the less likely you are to walk away from the loan if it goes south. 

I don't know any HML that doesn't want the borrower to have skin in the game.What is your contingency fund?

It has been my experience that students will flake out on signed leases but not signed leases AND skin in the game (i.e. money).

I generally don't like to go less than $10K-$20K on a downpayment to be sure the buyer has skin in the game.I ABSOLUTELY recommend you work with a Real Estate Lawyer and/or Title company on deeds, promissory notes, deed of trust etc... to make sure everything is drawn up correctly and filed correctly.