Underwriting assumes that you will sell the NOO or the vacation home before you would sell your primary residence in a time of desperation, thus the need for more "skin in the game"

If you really want the place and are sure you can flip for a profit you have to put some skin in the game.

Most lenders like to see a track record, skin in the deal, and collateral.Joe Gore

@Marvin Spears,You are on a site that will prove far more valuable to you than any guru you can find, anywhere, at any price.The whole guru, coach and the latest fad, information marketer 'scamdustry' just makes my skin crawl.If they were as good as they claimed, they couldn't afford the cut in pay to become a guru or a coach or an information marketer.

He's also selling a 2 Million+ RV park so he doesn't need the cash but is more concerned with someone coming in, not taking care of the properties/tenants and unless he gets a good down payment they have no skin in the game.

If they cant qualify today, find out what is lacking, and have the RMLO state that in a letter. 3. the tenant buyer has "skin in the game" from the option fee, so they are less likely to damage the place. 4. the seller should do a walk through and inspect the place regularly, like every month. 5.

His comments above are filled with a lot more advice than you may realize at first glance.The only thing I'd add is that this isn't a business for the thin-skinned.

One is so I had a decent amount of skin in the game from the borrower, and also to make my note more valuable if I ever needed to sell it.

Assumption is a renter will not take as good care of your place (especially if you're a distance away) as if they had skin in the game for ownership.

The Foreclosure time frame is why HML now want higher credit from borrowers and skin in the game.