For the most part they require some type of "skin" in the game.

If you are willing to carve out the time, stay consistent with your marketing, and have thick skin, wholesaling could be a good way to learn about RE investing, build your network, and generate some cash.  

Just someone who is happy to lend 100% of purchase without the borrower having skin in the game makes me think of a red colored flag. 

We do have some money in the bank, so we do have a little bit of skin.

@Sam OwensSince you are a first time investor, I would suggest assigning the property "as is" instead of undertaking a rehab.Unless you have funds on your own or you personally know people with money, it will be hard to get money, even from private lenders, unless you are willing and able to put some "skin in the game" (money down.)You build up your experience and resume as an investor by doing a few wholesaling or assignment deals to start with.Also don't second guess what potential buyers would be willing to pay for the property.

I explained that I'm not comfortable lending the full amount, but if they had 10% skin in the game I'd consider it.

I promise not to take it personally)They don't appear to pre-fund to their borrowers - which essentially means that a.) they don't have skin in the game, and b.) the lenders/investors don't begin accruing interest right awayThey don't appear set-up investors up with a 'Bankruptcy-Remote' legal structure which protects investors in the event that PeerStreet goes bankrupt.

I'm sure there is more than one way to skin this cat.

I get locking up the deal and having some skin in the game but 5k is ridiculous.

As @Russell Brazil said this business is built on relationships, you are an outside investor with no skin in the game in that particular market...