Outside Funding for an LLC

[Nicholas Sheridan, Jr.]

I am running into a financing issue that I can't find the answer to anywhere I search. I am looking at financing options for the next property and what I wanted to do is setup an LLC, have investors (friends and family) put money into the LLC and then I would use that money as the downpayment. I would pay the investors back with a fixed rate loan and I would retain 100% ownership of the LLC. HOWEVER, I just found out that this is most likely illegal especially if the investors are non-accredited. Damn! Now I am wondering if the investors could be managers in the LLC, have 0% equity and loan the LLC money?