That's time, skills, savvy, and the rhino-skin. 

just need to be careful in picking the borrower... but that those levels the borrower will have 1 to 2 million in cash skin in the game.. so you do mitigate the risk.

Should he be getting more since I have no skin in the game? 

What value do they bring aside from perhaps finding the deal and having some skin in the game also?

They need to have some skin in the game if they expect you to take on some risk. 

In essence, prepare your private equity partner to bring more skin in the game if necessary to do these deals.

--- And then, how can I minimize my risk 2nd position is a start can I minimize even further by requesting that In only fund 75-80% of each and that the builder fund the remaining 20-25% so that he has skin in the game?

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

It's out hard earned money, so looking for someone who has skin in the RE game also to offer us better advice/strategies and future planning.

That's not included rehab costs, r.e. agents / attorney fees, closing costs, insurance etc and you'll still need some 'skin in the game'.There are even JV offers on earnest monies (they'll put up the full amount of the EMD) that I've heard of.