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.

The question with owner finance still comes to experience and reserves.I can buy no money down with owner finance and show reserves to make the seller comfortable.They want to know when the time comes you can cash them out if needed to and pay off the loan.They also (depending on foreclosure process and timelines of the state) worry that you will run the property down worse from what it is today.They will foreclose,not receive payments,spend a bunch of money,and take back a bigger headache then they had before.I have sellers who have financed me that will write a letter stating I do what I say I am going to do and follow through.If you are just a buyer just learning and wanting to put "no skin in the game" then the seller will not want to take the risk.You have to have experience,reserves,cash to put down (something of value) to get a seller wanting to do the deal.Now you can find sellers wanting to go for anything but the deals are crap.I know a seller right now offering owner finance.Wants 15% down which for the condition of the properties is a pipe dream.The property a 4 unit is owned free and clear.It has been run down over the years.I know taking it over I would want no money down,2 to 3 months of no mortgage payment on the note,and a great interest rate to purchase.I know the landlord just stuck below market tenants because they didn't want to make repairs.I am going to spend a few months getting those tenants out and rehabbing the units and fixing all the problems before generating cash.I know this because I have other buildings close by in the area and I know what it takes to turn them around.If you only want to put 10% down max then start at 3% down and make the seller feel they brought you up to the 10% down.Have to make it look like they won.I am willing to give the seller a little more on price for the right structure and cash flow for me.If they do not own it outright and you do the wrap you have to watch out for the due on sale clause.Especially true if you put a bunch of money down.You have to make sure you can refinance out of the note quick if called and that the payments go to the bank to make sure mortgage is credited every month and not headed to foreclosure.

If they reject it, no skin off your back.  

Keep copies of lease secure and use addendums to renew it every year if you get long-term tenantsBe friendly, have a thick skin and enjoy being a landlord.