What they call skin in the game.

As has been mentioned in many podcast here, there are a million ways to skin a cat.  

Brandon Burrell unfortunately most lenders are going to want some skin in the game!

Hard money generally doesn't go to 100% - 75% is a "normal" max but a lot will not go higher then smaller numbers like 70 or 60.So you will have to put $$ in - HML will want you to have skin in the game.You need to find something that leaves you $$ left over for rehab.Also - remember your buying that 100K property (ARV) for 70K or 50K or whatever and that is the amount your financing.or if you say homes (even rough ones) go for 100K - well - are they worth more after reahb - if they are worth 150K that is what the HML will loan on.So in that case you can get a 70% LTV from a HML - kick in 5-10K (with closing costs) and then spend the rest on the rehab and holding.Some HML will let you in with no skin on your second + deal as well so it does get easier the more you perform.

many (most) times, the lender will not consider a loan modification until you have defaulted. so if you default, your credit will be damaged.lenders want to make sure you have skin in the game. you signed a contract for the terms listed and if you want out of the original contract, you need to pay a premium.

I suppose if it's the latter the work would be in identifying those partners without a lot of skin in the game or experience. 

With a full structure rehab you are talking a lot of time and possible code and permit issues versus a skin job.

Most private investors want you to have some skin in the game.4.

This way he has skin in the game and an incentive to close the deal, because otherwise he will loose his EM.I look at it this way: if you get the deal then good for you, if get burnt you will learn a huge lessen on a small deal that will benefit you for the rest of your life.

I thought as long as entities had proportionate skin in the game, it was ok.My SDira presently owns 100% of a property that I purchased a number of years ago.