I could be wrong, but that's the assumption I use to make my decisions.As far as cash on hand, I typically assume I can make a 5% return for no risk / no effort (savings account) and around 12% for moderate risk, lots of effort (basically finding another property to buy that pencils at 15% irr).Now that we've got those two difficult assumptions out of the way, the question becomes, how do you calculate IRR?It's

If they pay, they are serious.Investors are always talking about having skin in the game.

So a sponsor that's great for one investor will probably be terrible for another (and vice versa).I'm a conservative investor, so when I invest in multi-family I prefer sponsors that have at least one full real-estate cycle of experience, little to no money lost, low leverage, and high skin in the game.And there is an apartment operator that has multiple real estate cycles of experience (decades) with no money lost, low 65% less LTV, and high 10%+ skin in the game.They market under 506B so are prohibited from posting publicly on the Internet and instead function by referrals.

To make matters worse, they have no skin in the game once the Tenant moves in.

I will echo what several have already said...Here is my take, and keep in mind that I am an investor/agent so I very much have some "skin in the game" when it comes to this ruling. 

Consider the pros and cons of mixing family with RE with no skin in the game.

By partnering with a wholesaler and rehabber from the area we control the costs of the rehab and give the contractor skin in the game.

Yeah - the issue is though, from the lenders perspective, unless they absolutely trust you completely (not only trust that will try, but will succeed) - its hard even to come up with a fair portion because you'd have no downside or "skin in the game" - i.e. no incentive to keep going if the project derails because you have nothing really to lose

You require an all-cash purchase (as opposed to allowing them to tie up the property for months at a time with no skin in the game)2.

Depends on what you call "Skin in the game''.