Kind of an interesting Banter going on here about HML vs Cash Vs ConventionalWhile I too have never used HML here are the things I think about with themFor easy math lest use $200K as the loan amountThe assumed qualifiers for the person who are looking to borrow are Solid credit, willing to allow 1st position to the HMlender, Able to have their own skin in the game vis a vie capitol for renovations etc… Targeted a real deal.My questions would be for Don Kanipol HML guy what is the cost of this 200K capitol for 120 days?

I have tough skin but when an idiot calls themselves coming for me I react.

They will be the project manager and investing their time for 50% of profit; however, they don't have any skin in the game in terms of actual cash.Is it normal for me, as funder, to ask to have a loss allocation written into the document?

Then you have no skin in the game, just your credit score...and you lock in a lower interest rate.

They didn't have skin in the game and I couldn't force them to work harder and longer.

How much skin are you going to put in the deal?

Seek out someone who is and shares your vision, and screen for agents that work with expired listings since that is what you personally want to work on (note that this is a tough market and takes a thick skinned agent and not all will do this as a result). 

Also, seems this began with the assumption that a lender would loan 80% with the seller taking 20%, won't happen, there is no skin in the game. :)

You also meet a private lender who will lend in two separate ways: Long term (10-15 years) mortgage on investment property at 10% with minimal down payment (this is negotiable, but it’s just so the borrower has SOME skin in the game), or short term (minimum of one year interest guaranteed) at 12% (acepting interest-only payments). 4.

Happy Thanksgiving and go Skins!!