Regardless if that was the intention or not some investor who has zero skin in this house at all has started problems that the owner now has to deal with.

They have more skin in the game then you do.Make sure you get clear title.

Id love to hear form some other if they fele this is a good deal or an average deal or if there is another way to skin this cat

I would beg to differ in that the 50% rule isn't solid but there is more than one way to skin a cat.  

Do they have skin in game - They will have to bring money to the table since you are lending either 65% of the ARV or around 75-80% of the purchase price. 3.  

I'm only comfortable placing loans after I've run a borrower through my own due diligence and only when they have significant skin-in-the-game.  

Michael,i appreciate the response thank you.just to be clear, I have thick skin, been doing large scale construction for 23 years and transactions totalling in excess of $200mm but it just caught me by surprise in one of the forums when someone had asked about a investment property str and it was a vague question and got a "holier than thou" response and when they responded back they essentially reduced the person to a you tube investor lol.

Fortunately I was able to find skilled and trustworthy contractors, and share equity stake with them to give them skin in the game and ambition to be successful.To get the seller to closing, I built a short but meaningful relationship with the seller.

Those 40% owners might not have enough skin in the game to make a deal work but on the other hand they are maybe stuck with a HELOC or other second mortgage that they want to get out of.

The moment anyone even mentions "house" I pop up with my leopard skin towel around my butt swinging from tree to tree, in their heads !