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

We have skin in the game as it's "our house" in the eyes of the Hard Money Lender and plan to be able to flip it within 3 months.

Good luck selling it for a healthy profit!

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.

Their salaries + FICA + bonus + health is going to set you back a certain amount at the minimum - let's call that minimum $120,000, though to get good people in competitive markets it'll be more than that.So, the first question is - how much GCI do you need to absorb this payroll?

Conventional loans can be like 5% down, but when it's on a rental property, they will want 15% or more down.The down payment represents skin in the game so you don't just walk away after things go bad and they make the lender feel comfortable because if you walk away, they can recover at least whatever equity is in the property.So, I also suggest looking into down payment assistance programs because first time home buyers may qualify for grants that cover your closing costs/down payment.If you have useful skills that are in the accounting, legal, or construction fields, maybe you could leverage that into a partnership where someone else can handle the finances.

If you had your own cash going in to cover all costs that would be a different story but considering you have no skin in th egame you are also too high risk.

I've engaged similar discussions, I was the partner to bring finance, although it didn't work out at the end.The thing I wanted most as the finance person to make sure the operator/developer has skin in the game, that he will make money or lose money together with me.I'd love to hear what kind of arrangement you end up with.

I believe that all partners should have equal skin in the game.

Some areas of Peoria have home ownership rates below 10%.... and it’s pretty hard to sustain a healthy appreciative environment with that going on.