They have no skin in the game.

As always, I'm eager to hear what people think and I'm always looking for advice, feedback, or constructive criticism so feel free to fire away, I have tough skin.

I require them to have substantial skin in the game because I don't want to assume all the risk in THEIR project.I require a 35% (that's 35% of the purchase price) down payment and I also require that the borrower have enough cash reserves to get them through the project.  

Well the one I have is drying up.

My understanding has always been this; For the banks, they want you the buyer to have skin in the game.

But as I thought about it, your partner had/has at least some skin in the game w/ respect to that downpayment.

Paul, I think a lot of lenders are more comfortable when the know they borrower has some decent skin in the game.

I know deals are drying up around here, so moving forward I am going to have to start focusing on " working on the business, not working in my business".

Great tip JJ Pawlowski ... as long as you are clear with your HML and they are clear with you, budget in all the fees and closing costs, make sure to be ready to come to the table with some skin in the game, and it will be a smooth transaction! 

Assuming all is well, you will need to arrange to have any dry AOMs recorded, including the AOM which assigns the mortgage to your business entity.  3) I recommend getting a field call scheduled so you can get a fresh read on the occupancy and condition of the collateral property.