At first, it would be for smaller commercial properties, but if the relationship grows well and we make a good team, I'd love to scale up with them.Ideally it's a win-win for all:For the PM: They get a large chunk of equityThey get more business.They get access to my investors' capital for potentially future dealsIn a way, they eat what they killFor me: I look favorable to the lender with an experienced PM team as a partnerI'll get a deal under my beltI'll be able to get help with the downpayment, reducing the burden on my investors and myselfFor my investors Sure, they lose out on some equity, but they'll get a (slightly) higher return due to the lower monthly management feeThey'll sleep easy knowing that the PM has skin in the game and is experiencedTo be clear, I'm playing the long game, so I'm more than willing to do say, a 55/30/15 split with the PM/Investors/Myself and with a 3-5% monthly management fee.

But in my experience, properties with a majority of tenants who have little skin (their own money) in the game will treat the property and the neighbors accordingly.

You need more skin in the game.

I have thick skin so PLEASE feel free to poke holes in my thinking and show me where I might be off base.My situation: I am mid-30’s with a wife and young child, and we currently rent.

The current may have motivation to get rid of them and lie about how great they are.... the one before that has no skin in the game and will be more open and honest.

After a few flips, I will have more skin in the game with the profits from the houses sold.Thank you in advance for any suggestions.

My partner had no skin in the game, ask for top dollar which we finally got after holding things up for 6 months longer, past the expiration date of the assignment contract, and getting extensions.

Then, after you get the pests controlled, have a good look around the building and have them inspect for holes and areas that may be a problem.About the tenants, don't let them get under your skin.  

The problem you may run into is the the owner finance portion as most lenders want you to have skin in the game.

From a lenders perspective , borrowers who do not have any “skin in the game” are far less likely to see the project through in the event of a default.