Just a different way of skinning the REI cat.

The one thing I'm short on- this mythical 10%-30% "skin in the game" that everyone wants to see before they fund your project.In SoCal, where I'm from, houses start out in the $350K-$450K range for 3 BR entry level homes. 30% of $400K is $120,000.

Then add 9k in closing plus whatever skin you are putting in (20%= 60k).

It's a simple math.Therefore the "excellent" PMs are probably just happened to be sitting on your low-maintenance property and easy to deal with tenants until they become "bad" PM when issues arise.I am not being dismissive of all PMs, I was a PM until I quit after I was owed thousands of dollars of maintenance cost when the landlord starting delaying his reimbursement because he ran into cash issues.I'm in favor of building an incentive structure so that the PM has a skin in the game and is motivated to solve the problem.

Hard money..it can get very creative with creative financing, unlike local banks who can not approach financing creatively as hard money lenders can.Yes...I should have been a little clearer, since hard money also can be seen as creative financing, however for the most part you have to put up some skin in the game as they say in the industry.I am not talking about hard money since this is something I know a little about, but what I am interested in is learning these other creative financing strategies that I have not been exposed too.Just curious about them and how to apply them to unique motivated apartment building owner situations...!!

We kept 25% skin in the game, and our equity was subordinate to the senior bank debt.So here is the word of caution.

Most HML will want you to have skin in the game to start out with get track record with them and they will fund 100% after time.

On the other hand, a tenant that moves in with BB will have a build up of BB, shed skins, and fecal material on their beds and couches - strong evidence that they brought them in.I don't think it was mentioned yet - you should treat both sides.

I looked him up and looks like I will enjoy some of his videos later tonight :)Second, with your energy you will be "big time" shortly.There are many ways to "skin" the cat.

We just refied out of that a few weeks ago... still have some skin in it, but well under 20%.