My goal: to form an LLC with friends who want to partner with my in real estate investing and have an attorney draw up an operating agreement with us.Once we have some skin in the game through these small upfront investments, we'll be motivated to go out and find a property to get our money back!

I am not a Phill Grove customer so I really have no skin in this.  

The advantage to the investor is that they have no skin in the game and have control over the property. 

I believe that he wants me to have skin in the game until more trust is developed.

Perseverance is all you need right now. my guess is that it won't be long until you stop lIrving by the skin of your teeth.I'd love to see this same post next year...but you need to tell us how you've met your goals and overcome adversity.Good luck to you

Even if the entire situation was totally legit, people change their minds all the time and not having any skin in the game makes that very easy. 

You absolutely NEVER let a customer make you put your money in the game while they have no skin in the game.

Also, I suggest building a solid team around you for your first few investments to get some skin in the game before branching out on your own.

Or, do they always want you to have 25% skin in the game?

You have to burn the ships and put a little skin in the game to show you're serious.