Banks will want you to have skin in the game too.

However; if you do finance your deals, how much skin in the game do your lenders require?

Most contractors are notoriously difficult to get good, quick service from so you need him to have LOTS of skin in the game.If you come to a loggerhead and you still really want to use him, ask him to use an escrow agent that will serve as the middleman.

Many banks are going to want to see that you have skin in the game....most are not ok with you bringing in a second loan and not having your own funds in the deal.

There's not one way to skin a cat in real estate . . .

I owned the dirt so I had skin in the game and the lender would fund the construction costs and have a deed (first position) on the property.

As long as you left enough skin in the game for the buyer to be getting a good deal, I don't really feel like you should need to hide your profit from the end buyer.I have used a double closing before where I had a skiddish seller who didn't know I was flipping the property.

Rehab Scope: - Exterior siding- Extensive plumbing work- Electrical upgrades (power panel)- Stripped master bath down to studs- Stripped kitchen down to studs- Flooring throughout- Texture/Paint - Baseboard/casing- All new electrical fixtures- Plumbing fixtures- Landscaping packageLessons Learned: - Do what you do best, and delegate the rest.- You will make more money with a cell phone than you will with a hammer- If you spend all of your time managing the project, you will finish the project and not have another project to work on.- Flipping houses is a "job", not passive income, hire a GC, focus on deal flow.Here are some rough numbers:Purchase Price: $80,000Rehab: $78,000Commissions/Closing:$10,000   Utilities/Taxes: $3,000              Total: $171,000Sales Price: $207,000Profit: $36,000

Some will and some will not and some that will will want information on them as well due to you having no skin in the game they want to make sure that they know where the money is coming from and possibly have them as a guarantor as well on the loan. 

Remodeled both sides with new bathrooms, texture, paint and flooring.