Seller owns property free and clear and you guys sign a purchase agreement for 100KYou put down 10% which is 10K to the seller(skin in the game)Your hard money lender put in 90K, which is the rest of the money due to seller, to get to that 100K owed.Then Escrow closes and your seller has the 100K owed to him and then you pay the lender who put in 90K monthly interest only payments till you resell/refinance the property paying off the 90K owed to him.

You will need to come up with the down payment (lenders want you to have skin in the game). 

As with most things..... a million ways to skin a cat. 

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

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

I feel its more ethical to have some sort of skin in the game.

My first purchase I used a partner to obtain the bank financing as well as the down payment so I was zero out of pocket on my first 4 or 5 deals (all of which with purchase prices well under $200k.There are many ways to skin a cat so if you don’t qualify for the traditional bank loan, get creative but in doing so, be very careful in using OPM.

There are a couple of other ways to skin that cat depending on the situation and amounts. 

It looks like persistence, consistency and a thick skin can get you through the door. 

If anything has been permanently affixed to, or modifies the original 'skin' of the home, it won't be good news for the bank loan.