This is to make sure the buyer has skin in the game and doesn't flake, but is not hurt if the seller is the one that flakes.The seller may balk at handing over the assignment fee -- and it's a perfectly reasonable fear, especially for the first deal.

Not saying you are, just saying it is fruit for thought.There is also more then 1 way to skin a cat, say if they wont lend for the purchase and that is what you are seeking, how about using HM for bridge financing, rehab and rent or C4D, then seek lending on the owned property?

That sounds like it's really hard to set up because of the SEC rules.I have a different idea I wanted to see if anyone could help me with.....I have 2 people that are willing to invest about $50k each and I would bring $50k to the table as well.The goal of this partnership is to use that money to either directly purchase rehab properties or as money to bring to the table for lager property deals (to make up the 20% skin in the game that lenders need for a mortgage commitment).My business partner and I already have an LLC that manages our existing properties.

When sanitary napkins, tampons, paper towels, grease, rice or potato skins get flushed, they get caught on the inside of the metal pipes - so do baby wipes, even those that say flushable.

Better have a thick skin, though, and some real courage to knock on a strangers door.Those are just a couple of ideas.

Buyers are not as motivated IMO, they will walk away if something isn't right and they usually don't have much skin in the deal.They are poorly written, many fail to address insurance issues properly and if they were there would be a tenants policy and a hazard policy, that increases the costs of the deal.

As always, deal with people who have a track record and skin in the game.PG

If the buyer/renter has no skin in the game you will get burnt.

I know its just part of the business and I always told myself that but it is very demoralizing when a house gets trashed...and danged thieves...that really gets under my skin.

You can't be greedy when you have zero track record and with almost the equivalent of no skin in the game.