To put it simply, I’ve been told that I do not have enough skin in the game myself in order to cash out some equity.We bought the seller financed with only a $30,000 down payment.

The skin in the game investors are doing as expected. 

the flipper is in essance getting hundred 100% financing and has no skin in the game.. one thing that could sway the deal though is some cross collateral. 

You'll need a little thicker skin if you are going to invest in real estate. :) As you can see from Chris' response, the team at MemphisInvest are top notch.

Otherwise, work with an active partner who is willing to put some skin in the game.

Having someone who is local with skin in the game should increase your odds of success.

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.

If that is the case, many lenders will require for you to have some skin in the game. 

The risk of default goes up dramatically when a borrower doesn't put any skin in the game.

Often their security deposit comes from government assistance, so they have no "skin in the game", and no vested interest in taking care of your property.