The D/E may be too high, especially with where the market is right now, and they may want to see some you have skin in the game.

I would not want to invest in business that doesn't have a better plan than this or partner with someone who would contract before securing I suppose the seller has some skin in this as well having accepted an offer without proof of funds / financing  

1.If your HELOC permits, use it to satisfy equity infusion for the lender.2.You are trying to buy a property with no skin in the game.

If they find you a single-family home that you successfully purchase for $30,000 below market, you pay them 1% of the equity gained ($300).There are many ways to skin a zebra.

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

Anyways, I am in Chicago and my opinion would be that you need a somewhat healthy balance of both, but it ultimately depends on each person's individual risk tolerance. 

In the eyes of a lender they want to see you have "skin in the game", and also that they are not overleveraging themselves or their borrower (you) in the deal. 

I'm a big believer in "do what you say you're going to do" & good communication is the key to having a healthy landlord/tenant relationship!

Example: $1M Loan balance DIVIDED BY $2M Portfolio or Business Value = 50% LTV (underleveraged for most businesses)There's a "healthy" leverage percentage for each industry.

That being said, most real estate loans are somewhere between 50% and 80% loan-to-value, meaning the lender wants you to have skin in the game.