Possession prior to closing can be dangerous, really depends on who that buyer is, skin in the game, their ability to close, their motivation as well.

I would love to do a hard money loan, but all hard money lenders want you to have some skin in the game.

Our skin in the game will be the ownership of the building whose purchase price is $225k.

That's what people need - a sense of belongingness (via Maslow's hierarchy of needs).I would encourage you to 1) have thick skin 2) do easy things and build goodwill + momentum, and 3) use the DVP change formula at all time (check out: http://www.biggerpockets.com/blogs/2997/blog_posts/24776-how-using-the-dvp-change-formula-can-help )

I like learning about syndicating on bigger deals, as well, but I'm thinking maybe I should get some skin in the game first.I've been looking at deals in my area and in my state and I keep coming back to a deal that's just a few miles from me (decent area) that I found on craigslist.I noticed the listing disappeared quickly.  

But a good 50% LTV will get you good rates and you will have plenty of "skin in the game."

So let me ask you this switch positions . your seller.. you just deeded your home away you think everything is great.. now the payments are made for a year or so then. stop.. your seller probably has not really fixed their financial position and is now renting and so they can't afford rent and to pay a mortgage on a home they do not own... you as the real nice middle man who solved their problem is long gone you could care less you got your dough you just stuck your seller with basically a sub prime borrower they don't know... house will now finally go to foreclosure because both parties can't cure.. and of course your long gone you got paid you have no skin in the game does not affect your credit. 4. the people you saved cannot get another home because their mortgage is still on their credit.. they are stuck and did not realize it when they deeded it over.5. your Seller gets way pissed and files a complaint against you at the AG s office as you have taken advantage of someone in dire straights and now they are totally messed up. ( I have rescued investors who this happened to)So I know there are guru's that teach this and it all sounds good.. but UNLESS you have the ability to cut a check to payoff the underlying at anytime its called then step in and foreclose your lease option or contract for deed folks out.. then this is a horrible idea .. and again I know its taught and on the surfice it sounds wonderfuland it works like I said if your very well cashed up .. but most who do this are not ERGO they want the sub too deal as they see this as leverage into a deal with no personal credit.Also let me tell you there are sharks out there that do this and walk once they get a few grand .. in many states you cannot even deal with folks in foreclosure unless your a licensed foreclosure consultant.. our state is that way.So careful .. think it through .. use the 10 commandments due unto others.OH and lastly your comment about just walking that one really gives me heart burn.. you lead people on you bail on them and leave them no time to fix their problem when they could have been talking with a real investor or short sale broker that could have actually helped them and is not just looking to help themselves.

Lenders expect borrowers to put some skin in the game.

Also I think once we actually bite and own something and our skin is in the game, the rest of the gang will take this a lot more seriously.  

They are however allowed to accept securities, up to 10% equity in the issuer, as compensation for their services.There's plenty of talk about how platforms prefund projects and have skin in the game...