The sign needs to imply wrong doing without being slanderous.

That implies they can accumulate some cash.

Our firm added language to our agreement to address this issue, which basically states the PM agrees to act responsibly and to the best of its abilities in fulfilling its duties as Property Manager; and will make reasonable efforts to perform the due dilligence to be reasonably expected under the circumstances implied by the contract.It does not eliminate the indemnification clause but helps reassure the property owner that the PM is held to these standards.

Besides, you say that they are having a house built, so it sounds like they have some assets - which then implies that a short sale isn't a lock (lender might want them to bring some of those other assets to the closing table before the lender approves selling at a discount).

And, I'm not implying Steve is too conservative either!

That implies that the current value of their business is four times the amount of cash you're putting in.

I don't intend to imply that I clearly understand all the LLC/taxes rules but I have learned that if you are frequently transferring money from your personal funds to the business and back that can be considered comingling of funds and can lead to a judge or the IRS determining that your LLC is just a front and that you really have no business and loose any tax and/or liability protection provided by your LLC.Every time you contribute money to your business it must be properly recorded and documented.

I have a suspicion this one needs more work the ad implies.

So it implies the friend has paid rent in the past and my point is moot anyway.

Forget the financial impact.If you sell you are likely going to sign something that implies that the house meets code.