You can agree to take over the contract, but if it turns out he doesn't have one, you would just end up walking away.If he has it under contract for $100, and you purchase it for $100,000, you might not be happy, but you shouldn't let that get under your skin. 

Talking to people is way more effective, but be prepared to have to grow a thick skin. 

Local bank has approved $20,000 construction loan for rehab, but is unwilling to do any more as they feel we do not have any skin in the game. 

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

@Lucas Lawson  It sounds like you have some capital to put your own 'skin in the game' at least. 

Some bizarre, 70's style interior wall surface.

My market is Lancaster, PA and real estate around here is booming, so I would like to get some skin in the game and then learn from there. 

Most lenders require you to put down 20-25% to limit leverage and ensure you have enough skin in the game. 

I am rather conservative in the realm of real estate as I am not particularly interested in over-leveraging and am willing to put a little more skin in the game to mitigate my risk in some regards. 

A new construction project is much more risky to the lender which is why they want you to have more skin in the game.