Emphasize that these extra steps would protect both the property and your investment. 

Most of the sponsors do not have full real estate cycle experience but a relatively smaller number do.2) Most of these deals are protected under nondisclosure agreement.

You need to know how to enter the deal and how to exit so you can cover your areas and protect yourself from losing money. 

It's basically yearly treatment to protect the home from termites.

The only place I see more cheating is in the recruiting of SEC football players (SEC fan here).

Also to have a lease agreement in case things go wrong you have a way to protect yourself.  

As a bulk-delivery service, we have to protect the deliverability of all our customers.

If we buy this loan, we need to have a thorough game plan on how we are going to be resolving this and understanding these dynamics is key to managing expectations and protecting investments.Sounds like a deal more for someone that buys partial inheritance estates and spends years piecing it together than a note investor.  

I completely agree with the advice and I'm perfectly okay with not charging him rent.My concern is that by treating this property differently from all the other units in the Series LLC, I may be opening myself up to a situation where I'm weakening my LLC protections even if I keep the financials separate and in order.

Brokers protect the interests of all of the investors, but investors only want to protect their own interests, which can leave some investors out in the cold.