This is about sophisticated investors taking advantage of unsophisticated buyers. 

@John SanteroNo matter how sophisticated tech marketing, mail marketing, and signage can get.

Also distributions are usually based around P&L and since what you are describing is payment for services (regardless of income/loss), if the IRS ever audited you they would almost certainly re-classify them as guaranteed payments and then back taxes and penalties come into play.You also have the option of setting yourself up to do a real payroll, draw a salary, have the company withhold taxes, etc, but that's a headache in the business that I know I wouldn't want until absolutely necessary.

Crowdfunding is an exciting new financing mechanism but its still in the early stages of development and, I believe, works best when both the person/company buying the real estate has significant experience and the investors buying in have enough sophistication to understand the terms of what they're getting into.

I wouldn't go establishing a bunch of confusingly-structured entities in the name of 'sophistication'.   

You want someone gone, who appears sophisticated enough to know that they can make it cost you $5000 and several months?  

then anytime you get a group of non sophisticated investors in on one deal with no clear leadership this leads to all manner of confusion...

There are plenty of sophisticated folks that are not accredited Joel.  

i wouldn't say anything if all was disclosed as it should be but quoting you it sounds very much like you believe you need to take advantage of a not very sophisticated homeowner.

I'm sure it has gotten more sophisticated since then, however, the ongoing management was quite tedious.