Considering this is a new venture the HML may want you to have more skin in the game.It might be good to work on per-approvals from multiple HMLs.

The lead investor has money in the deal too so they also have skin in the game.

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

As you negotiate price, you're stressing the money needed to make improvements and repairs, point out that you will have skin in the game, that you're not in business to lose money, that you don't work for nothing, simply to reinforce the unlikely event of default, that come heck or high water, they will get their money.

I'm good with skin in the game but 25000 takes a lot of money out of other opportunities.The purchase price would be $122,000.

So you're trying owner finance 25% and 75% conventional commercial loan, have you checked if a lender would lend to you if you had 0% skin in the property?

As to LTV...not sure why an investor would care, other than they want to see you have experience and skin in the game.

The owner saves money because there is no realtor, you save money because there is no realtor, there is no negotiating through two realtors that don't have any skin in the game.

Dwight,We have been looking for hard-money in CA, and have not found anyone willing to do the types of loans that make sense - even at 70% LTV with our skin in the game.If you come across anything that makes sense, please let me know?

I have found that the vast majority of PMs in the area are skinning their homeowner clients every chance they get.