"Skin in the game" is a phrase that gets bandied around a lot in property development circles. Many people think that unless a developer has skin in the game they're not committed to the project.
I'm not really sure why this belief is so persistent. Most of the bigger, successful developers I know regularly work with investors to fund the equity piece of their projects. With bigger numbers and multiple projects, chances are high that none of their own funds are in a project.
But when you're short of funds in the early stages of your property development journey, you're in a different, more difficult position. How can you be ready for this question?
First up, let's take a look at what the phrase "skin in the game" means. Generally, it's defined as the equity or funds you have available to put into a deal. If you have no savings and no property of your own, then most people would say you have no ability to have skin in the game.
I think this definition is too narrow, even if it's the most common. As the "working" or "doing" partner in a deal, it's likely you've invested a lot of your time in progressing the deal to the current stage.
This is commonly called sweat equity and given how much of that you've already invested in the deal, you definitely have a commitment to making it successful. Otherwise, you've invested all that time and effort for no return.
But the problem is bigger than just investors. Lenders might have nicer names like "borrower's equity" or "developer's equity" but it means the same thing. They want you to have money in the deal.
So if you're at the beginning of your property development journey and equity is something you don't have, what can you do to overcome this challenge?
Potential Investors
If you've been delving into all my content, then you'll know I'm a big fan or no or low money down deals. There are other articles in Property Pulse dealing with those approaches, but here's a brief recap of a few, just to whet your appetite:
In this article, though, I want to focus on what to do if a potential investor wants you to have skin in the game. In this scenario, I believe education is key.
Before you approach anyone for funding or partnerships, you need to know your stuff. Study your local property market - trends, prices, up-and-coming areas, regulations, zoning rules, development costs, and how to spot value.
You don’t need a formal education in real estate to succeed, but you do need to educate yourself. Read books, invest in a property development course, attend local property meetups, join property developer Facebook groups, and speak to agents, surveyors, and other professionals in the field.
The more knowledgeable you are, the more confident you’ll be - and the more confidence you’ll inspire in potential partners and investors.
Maybe you’re great at finding undervalued properties, negotiating deals, or managing renovations. Whatever your strengths, they can be a valuable asset to someone with the money but not the time or skills.
Pitch yourself as the “boots on the ground” partner — someone who will hustle, manage the project, deal with contractors, keep the timeline on track, and maximize the return on investment.
Make your offer clear: "I’ll bring the deal, manage the process, and ensure a strong return. You provide the capital, and we split the profits." Or use a variation of that sentence depending on your deal.
This is how many successful developers got started - using other people’s money in exchange for doing all the heavy lifting.
However you approach this, keep in mind that you're not the only budding developer in your position. So you need to put in the work to make sure you're adding plenty of value to the deal.
Another tip - involve investors early. Personally, I like to get investors on board as early as I can. Partially that's just so I know they're there when I find the deal and I'm ready to move forward, but also because being involved from the start means I can bring them on the journey with me.
That's important, because if they've been through all the ups and downs of finding a good deal with you, they'll have a much higher appreciation of all the work you've done to get that far.
When they're just handed a great deal on a silver platter without any insight into what it took to get there, they're less likely to value your contribution.
Lenders
Getting a lender on board without personal equity can be challenging, but not impossible. As a property developer, especially in the early stages of your journey, you'll need to approach lending differently - with strategy, professionalism, and a clear value proposition.
Let's be clear here: lenders want two things - security and return. They’re not just looking at the project - they’re assessing you. In their minds, if you don't have equity in the deal, you represent a higher risk. Your job is to reduce that perceived risk by being prepared, professional, and transparent.
As a general rule of thumb, though, you'll probably need to focus more on private and specialist lenders, who are often more open to creative deal structures.
Since you’re not contributing equity, your proposal needs to be bulletproof. Treat it like a business plan. The more detailed and realistic your numbers are, the more confidence a lender will have in your ability to deliver.
Another option is to have a high net worth individual "sponsor" your deal. Essentially, they become a personal guarantor on the loan. They don't necessarily need to put money into the equation, but they definitely need either equity or security to make the lender happy.
Getting into property development without “skin in the game” is absolutely possible if you take the right steps. It’s about bringing value, working smart, and partnering with the right people.
Many successful developers started exactly where you are. No money, no assets, and nothing but hustle and vision.
What set them apart? They took action. They learned the game. They offered value. And they kept going.
You can do the same.
I'm not really sure why this belief is so persistent. Most of the bigger, successful developers I know regularly work with investors to fund the equity piece of their projects. With bigger numbers and multiple projects, chances are high that none of their own funds are in a project.
But when you're short of funds in the early stages of your property development journey, you're in a different, more difficult position. How can you be ready for this question?
First up, let's take a look at what the phrase "skin in the game" means. Generally, it's defined as the equity or funds you have available to put into a deal. If you have no savings and no property of your own, then most people would say you have no ability to have skin in the game.
I think this definition is too narrow, even if it's the most common. As the "working" or "doing" partner in a deal, it's likely you've invested a lot of your time in progressing the deal to the current stage.
This is commonly called sweat equity and given how much of that you've already invested in the deal, you definitely have a commitment to making it successful. Otherwise, you've invested all that time and effort for no return.But the problem is bigger than just investors. Lenders might have nicer names like "borrower's equity" or "developer's equity" but it means the same thing. They want you to have money in the deal.
So if you're at the beginning of your property development journey and equity is something you don't have, what can you do to overcome this challenge?
Potential Investors
If you've been delving into all my content, then you'll know I'm a big fan or no or low money down deals. There are other articles in Property Pulse dealing with those approaches, but here's a brief recap of a few, just to whet your appetite:
- deal finding
- option agreements
- joint ventures
- vendor finance to secure deals
In this article, though, I want to focus on what to do if a potential investor wants you to have skin in the game. In this scenario, I believe education is key.
Before you approach anyone for funding or partnerships, you need to know your stuff. Study your local property market - trends, prices, up-and-coming areas, regulations, zoning rules, development costs, and how to spot value.
You don’t need a formal education in real estate to succeed, but you do need to educate yourself. Read books, invest in a property development course, attend local property meetups, join property developer Facebook groups, and speak to agents, surveyors, and other professionals in the field.
The more knowledgeable you are, the more confident you’ll be - and the more confidence you’ll inspire in potential partners and investors.
Maybe you’re great at finding undervalued properties, negotiating deals, or managing renovations. Whatever your strengths, they can be a valuable asset to someone with the money but not the time or skills.
Pitch yourself as the “boots on the ground” partner — someone who will hustle, manage the project, deal with contractors, keep the timeline on track, and maximize the return on investment.
Make your offer clear: "I’ll bring the deal, manage the process, and ensure a strong return. You provide the capital, and we split the profits." Or use a variation of that sentence depending on your deal.
This is how many successful developers got started - using other people’s money in exchange for doing all the heavy lifting.
However you approach this, keep in mind that you're not the only budding developer in your position. So you need to put in the work to make sure you're adding plenty of value to the deal.
Another tip - involve investors early. Personally, I like to get investors on board as early as I can. Partially that's just so I know they're there when I find the deal and I'm ready to move forward, but also because being involved from the start means I can bring them on the journey with me.That's important, because if they've been through all the ups and downs of finding a good deal with you, they'll have a much higher appreciation of all the work you've done to get that far.
When they're just handed a great deal on a silver platter without any insight into what it took to get there, they're less likely to value your contribution.
Lenders
Getting a lender on board without personal equity can be challenging, but not impossible. As a property developer, especially in the early stages of your journey, you'll need to approach lending differently - with strategy, professionalism, and a clear value proposition.
Let's be clear here: lenders want two things - security and return. They’re not just looking at the project - they’re assessing you. In their minds, if you don't have equity in the deal, you represent a higher risk. Your job is to reduce that perceived risk by being prepared, professional, and transparent.
As a general rule of thumb, though, you'll probably need to focus more on private and specialist lenders, who are often more open to creative deal structures.
Since you’re not contributing equity, your proposal needs to be bulletproof. Treat it like a business plan. The more detailed and realistic your numbers are, the more confidence a lender will have in your ability to deliver.
Another option is to have a high net worth individual "sponsor" your deal. Essentially, they become a personal guarantor on the loan. They don't necessarily need to put money into the equation, but they definitely need either equity or security to make the lender happy.
Getting into property development without “skin in the game” is absolutely possible if you take the right steps. It’s about bringing value, working smart, and partnering with the right people.
Many successful developers started exactly where you are. No money, no assets, and nothing but hustle and vision.
What set them apart? They took action. They learned the game. They offered value. And they kept going.
You can do the same.
