I can understand that they want to know that you have skin in the game by paying certain fees and origination costs. 

@Coty Dolan We have a buyer right now trying to close on a cookie cutter deal and his HM lender is requiring a little more skin in the game for him.

Your cash on cash return is 3%.Look, I think the name of the game for the BRRRR crowd (and more experienced people should stop be dead in my tracks if I'm wrong) should be as follows:As little skin in the game as possible (e.g. none of your money or a small down payment)Buying for cash flow - to reinvest into the rehab part of BRRRR or into the next propertyBuying undervalued properties to provide value (make your money when you buy the deal)When the stock market provides 10-15% in a year, and you're making 3%, did you put $160,000 into the right investment?

If someone is short on experience, they need to have more of their own money (skin in the game) into the deal, and a very solid deal. 

We wanted more skin in the game, we have let him pay it in two months, $300 each month.

meaning: Is there ANY way I can get any kind of skin in on this deal?

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

I was wondering that does hard money lenders want to lend money to buy tax deeds in Texas or performing notes if you put some skin in the game i.e 40% LTV?

Or the have no income doc loans where you just put in 25% skin in the game.

I suspect they make a good amount of their revenue on flipping dreamers who risk the 3k.but if you think about it from Do hard monies point of view for sure they are going to be ultra conservative I don't blame them and they are only going to fund screaming deals where the borrower has Zero skin in the game other than the  3k and 600 fee and there are most likely other little fee's like title and escrow.. but show me a beginner who can land screaming deals.. sure some will stumble on them. but in my 40 years of lending HM most beginners have no clue as to what a deal is.and therefore this company is killing it making 3600 on turn downs.. pretty sweet if you can get away with it.