Because lenders don't finance 100% and they require you to have skin (equity) in the game. 

Not everyone is suited for homeownership and they all will claim that they will perform as agreed, they all say they want to own, but few succeed who didn't have skin in the game.

Good point Craig, an ex Realtor investor got tagged here, an escrow issue, even though she turned in the license, it was clear she knew better.I'd say it's not so much as an ethical matter as investors and Realtors should be operating at the same level.Probably has more to do with the requirement of giving notice that they hold a license, if not done tactfully, poor Harry homeowner may perceive the slick Realtor is going to skin them having greater knowledge. :)

There are many ways to skin the cat.

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

Just think, $25,000 which is the cost of Mastery is really a down payment or "skin" in the game when going for Hard Money on a Flip deal.

Hello @Steve Sapowsky,The discussions from our group in CT is that lenders like to see "skin in the game."

Has worked well for me but finding motivated sellers willing to keep some skin in the game for 18 months to 36months is tough since there are so many buyers.

His skin would be: it's local to him, cross country for me,  so he'd manage and rehab, and the 29k is coming from him at $500/month til done.

There's no guarantee your partner, whose only skin in the game is reputation, won't rip you off, head to Vegas and go on one heck of a bender.