They want 'skin in the game - which I get but unfortunately I don't have.  

Risk can be mitigated with collateral, so unless you've got more skin in the game in terms of finances, or real property, you should not receive more value for your money than any of your partners.

@Sharon Tippett there are many ways to skin a cat as they say.  

I am definitely not saying all, just many that I know.2. the rate if return is low for a 2nd position 3. the way this reads, it sounds like this is essentially a loan to get you the down payment money you don't have. that will be a problem for your lender (they want you to have skin in the game) and it is likely an issue for this private lender (again, in this situation you don't have skin in the game)4. you may find someone that would cross collateralize your first property (essentially take a second on it homes) so that might be something to think about.5. and last thing, I promise:) have you thought about borrowing from a family member?

Overall I understand WF is looking to cover their skin in the game. 

wow great stuff, one of the personality issues for me is learning to have thick skin...great advice guys.

Because lenders don't finance 100% and they require you to have skin (equity) in the game. 

Not everyone is suited for homeownership and they all will claim that they will perform as agreed, they all say they want to own, but few succeed who didn't have skin in the game.

Good point Craig, an ex Realtor investor got tagged here, an escrow issue, even though she turned in the license, it was clear she knew better.I'd say it's not so much as an ethical matter as investors and Realtors should be operating at the same level.Probably has more to do with the requirement of giving notice that they hold a license, if not done tactfully, poor Harry homeowner may perceive the slick Realtor is going to skin them having greater knowledge. :)

There are many ways to skin the cat.