Because of the law changes you must make them two separate documents.

In Texas, you can only receive 80% of the value of your property with a cash out loan. 

I've received quotes from lenders for different types of loans, insurance quotes, and should be receiving rental projections from one of the major property management companies in the area.

Move forward with your investment, and use the education you have received on this deal to better your prospects on future deals.

I am thinking I can just not have the equity backed by an official note (the people who would be investing with me are a close friend and my family so they trust me) and that would be okay, but I am not sure how un-documenting this large sum of cash would mess with FINRA’s regulations...

@Steve Vaughan, pause MSNBC and research:LENDER CREDIT LENDER TO BORROWER CREDIT LENDER CREDIT TO BORROWER etc.If you ever do need a mortgage loan, it's a way for borrower's to minimize their out of pocket costs by choosing a higher rate and receiving a Lender Credit.Yankee Sierra Foxtrot India! 

All they need from you is PA and documentation that the house is legally in seller’s name.

Homes where people have paid thousands in rehab where nothing was done.Situations where the owners have been receiving $700 in rent each month, but the lease with the actual tenant is much less. $450 in one case.

, you really want to Target a rent to price ratio of 1% or greater. ie buy for $600k, receive $6000 monthly income.

So that being said, no judge is going to look very kindly on a company who takes your security deposit with this kind of documentation.