Shares of my LLC to Raise Capital

[James Rutan]

Assuming I am only talking with friends and family, can I raise capital in exchange for shares of my LLC? My next property will be a triplex and our primary home. To help with the down-payment I am considering asking my family and friends to invest in my PM company. Their cash would earn a yearly return paid from the PM profits. The profits come from my other rentals and the 2 other units in the new property. Is this the right way to do it? Thanks in advance.