Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Why Lenders Demand 'Skin in the Game'

12 Feb 2026 · 1 min

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In this segment, the speaker explains the key criteria lenders use to evaluate real‑estate loan applicants, especially first‑time buyers. Lenders want proof that borrowers have "skin in the game"—meaning they have enough equity and cash reserves to absorb unexpected problems. They also require two to three years of personal tax returns to verify steady income and overall financial stability. The speaker stresses the importance of a well‑crafted resume that highlights relevant real‑estate deals or, if the applicant lacks direct experience, showcases professional experience that translates to real‑estate investing, such as participation in a self‑storage mentorship program. By presenting a strong, credible profile, borrowers increase the likelihood that lenders will take their loan application seriously.

Chapters

Lenders need to know you have skin in the game and the reserves to handle unexpected issues. Should also include 2 to 3 years of personal tax returns. This is how the bank verifies your steady income and financial stability outside of this deal. Don't skip the resume. It needs to highlight your relevant real estate experience, showcasing deals, deals you've successfully completed and the skills you bring to the table. If you have none in real estate, Highlight your professional experience and how it relates and/or whether or not you're in a self-storage mentorship program. Lenders feel more comfortable with first-time buyers when they know there's an experienced set of eyes also looking at the deal. A strong profile is non-negotiable. It builds the credibility that gets your application taken seriously.