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.

(distressed)5.What are some characteristics to look for in a great deal- ARV and rehab cost6.What should you be on the look out for when going door to door or driving for leads- Have thick skin when you get rejected 20 times in a row.

I have one really good friend is really ugly, teeth problems, a bad skin condition, his hair is even worse than mine, and he actually dresses so bad you want to scrape stuff off of them.

I will have skin in the game, just not very much maybe 25k or so. 

I'm in the SF Bay Area and my predominate factor is [the amount of time I estimate for rehab (I'm a contractor) and the closing time and the average DOM (days on market) before I expect to receive an acceptable offer] vs [the amount I can potentially make.]For example, it may not be 30% margin (less 10% holding costs) but if I can make a hypothetical 50k on a 6 month flip on a deal where I have 150-200k of skin in the deal, I will deem that as acceptable--granted I factor in a healthy cushion for additional holding time and additional rehab cost.

It depends on the thickness of your skin and your stomach.

The only issue I see is that the PM only "sort of" has skin in the game.

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

I have a working DST right now with Healthcare Realty Solutions, great return, check hits every month, I like the fact that they are the sponsor and broker for the deal "have skin in the game", I also like that it is a gyno clinic in August GA tied to a medical school, seems pretty stable. 

You're offering just over half the listing price with no skin in the game.