Those 40% owners might not have enough skin in the game to make a deal work but on the other hand they are maybe stuck with a HELOC or other second mortgage that they want to get out of.

Thicken up your skin, take them off the list and say: "NEXT!!"

The moment anyone even mentions "house" I pop up with my leopard skin towel around my butt swinging from tree to tree, in their heads !

Anymore, they want skin in the game and require separate closings.

I think almost all investors, including myself, would be reluctant to loan 100% where you have zero "skin in the game".If you can't save a few thousand dollars to invest then you're probably not ready to jump in yet.Also, what is your plan to cash them out?

He found a GC and they are building two spec houses, the GC is has some skin in it as he's fronting some of the costs on the builds, but getting a share of the profits.

@Greg H.There is always a different way to skin a cat...Just sayin...done correctly the idea WOULD work....is it risky?...

@Beth Cannon I would advise against offering a full month of rent free because you want tenants to have more skin in the game than just a deposit.

Would this be a good time to seek that out private money for 12-15% with as much skin in the game as I have, or would it better to seek out conventional financing after the single family is complete?      

At 20% down, that's your skin in the game, IMO a motivated seller should be accepting that.