SO for those of you beginners who don't have much cash and you want to flip a house, here's a 3-step process on how you can do your first fix-n-flip with no cash out of your pocket:Step 1: Raise Your Downpayment Using a BUSINESS LINE OF CREDITHard money lenders require that you have "skin in the game" or downpayment.

Im thinking...if he comes in with half the skin...I can treated as a normal JV 50/50 or 60/40 @Nnabuenyi Anigbogu@J Scott

It'd be best to cut all the expenses you can and save up enough cash so you have significant "skin in the game" or even fund the deal yourself. 

@Steve Rozenberg  VERY good post.I was on the receiving end of undercapitalized investors.. and Like most of us HML who had substantial loan portfolios pre 07 we came to understand that those with no or little skin in the game are bad risks regardless of their FICO score. 

I understand a lot of lenders want the rehabber to have some skin in the game, but is it stupid to search out a person who group who doesn't?

What skin in the game will you have?

If I try to stitch something together without ownership, it will fall apart because people sense that I don't have skin in the game.

Aside from the obvious having some skin in the game and keeping your credit intact its really mostly a matter of doing a good job of keeping costs down as you move along and grow.

If you have no skin in the game, you may be able to learn quite a bit, but that will be up to you.  

Good input Jeff S Na My thoughts were:1) Borrower has less skin in the game to the extent of the junior liens, thus less motivated to solve problems and get things done, (s)he may actually have all his/her cash back.