In addition with some loans such as Fannie Mae they are now allowed to move the property from their personal name into the name of a LLC without violating the due on sale.Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage LoansD1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)[...]D1-4.1-02, Allowable Exemptions Due to the Type of TransferA transfer of the property [...] to [...] a limited liability company (LLC), provided that: the mortgage loan was purchased or scuritized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.All of the information that I post here on BP is to be considered my opinion and not taken as legal advice as I am not their personal attorney. 

AKA "skin in the game"

Seemed the best course from a liability perspective, although naturally your best course of action may be different based on the reason they are requesting it.

Figure out how much skin in the game you will have so you can tell the bank your down payment. 

Understand YOU and you can take over the world, you have the other side of the picture because you understand people and human nature.

Regrettably, everywhere has natural disasters, earthquake, wild fire, flood, hurricane, snow collapse.  

Being that I had no "skin in the game", I offered to manage the project from start finish and take a smaller percentage than the investor( I.E. %30 for me, %70 for the investor).

Figure out what that fear is and overcome it if you want to "Play to win vs playing not to lose".It's natural to be afraid.  

Could anyone offer any suggestions on the nature of the conversation I should have with the buyer's agent to go about helping me with my offer.

By having that in place, two things will happen:The seller will be motivated to sell on a lease option because they're getting some money down and they feel some assurance that since the tenant has skin in the game or something to lose, they are not going to tear the place up; andYou will know the tenant is really serious in buying the house.