Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.At the "contract to hold" meeting, I collect an amount equal to one month's rent. 

If you don't have experience very few lenders will give you an ARV loan with no skin in the game.

We buy higher income homes where the tenants have skin in the game to perform.

There are also good reasons why having "skin in the game" (putting capital at risk) is required by most people that would advise a seller in a transaction.I don't believe "wholesaling" in any of its forms is unethical.

You need to have skin in the game otherwise an investor or bank will not work with you.

The flip side of this is that many investors do not do their diligence at $5K so I kind of feel the low minimum leads to more speculation but I could be wrong.  3) From what I can gather many people have done ok with the investments.The key like any investment is to do your diligence on the structure of the investment, on the property, on the sponsor, on the fees, on the sponsor's skin in the game, on the fees paid to the portal and on the area you are investing in.

You have to have a thick skin out there.  

To have skin in the game, how much percentage of the profit I make should I give him/her?  

(now's the time that I mention the need for thick skin!)  

More than a few ways to skin a cat in local REI.