Ultimately they want to make sure you have enough skin the game to invest in the 6 unit.

Real estate agents and investors have all gone through it.Gotta have thick skin in marketing.

I've got to skin this cat!

They don't have any skin in the game because they get paid either way.

The risk of default goes up dramatically when a borrower doesn't put any skin in the game.

There is also big opportunity for fraud in any area with subjectivity and opportunity for big gains.Bottom line - valuations on cash-out refis are less reliableAdditionally, lenders like to see "skin in the game" in terms of properties - psychologically, a borrower that is putting down cold hard cash on an acquisition means they have real $ to lose if things go wrong.

Because you are invested into them and have skin in the game, you will get educated by the good and bad things they do.

Well, who has more "skin" in the game on your behalf:1) An agent that finds you a property, gets their commision and is doneor2) A PMC that has to manage your property every day until you sell or terminate them?

Idk what I’ll need to use of it, but it’s amazing to know that tenants have enough skin in the game. 

But the loans can be 100% (purchase price and repair costs), as they loan based on the value of the deal, not necessarily the borrowers credit worthiness or skin in the game.