Bottom line, provide a notice in writing.

Full Disclosure is Required for Non-Accredited InvestorsIf any non-accredited investors participate in your deal, you must provide them with detailed disclosure documents.The SEC states:“[The company] must give any non-accredited investors disclosure documents that generally contain the same type of information as provided in registered offerings.”This is where having a Private Placement Memorandum (PPM) and Subscription Agreement becomes absolutely necessary.A PPM outlines:✅ The risks of the investment✅ The structure of the deal✅ The terms and conditions✅ The use of fundsA Subscription Agreement ensures:✅ Investors acknowledge they understand the risks✅ They meet SEC requirements✅ They legally commit their capital🚨 Not providing these documents could leave you vulnerable to investor lawsuits.4.

Quote from @Scott Cash: I'm part of a three-member LLC that owns a $10M commercial property outright (each holding 33.3%).

When you say you want to prioritize cash flow over equity, you want to watch out for people honing in on that and selling you "good cash flow" deals which will be in D neighborhoods and will come with high capital expenditures and harder tenancies.

After 45 + years as a real estate investor, broker, lender, fund manager and syndicator, I’ve become aware that the “dream” of many investors and investor “hopefuls” is to be able to generate enough cash flow to live off their real estate holdings and accumulate enough wealth to make “work” optional.

Purchase price: $295,000 Cash invested: $50,000 Single fam home, desirable neighborhood.

You’re not going to find a safe way to do what you want unless you or the “buyer” has enough cash to pay off the note. 

Cash flow will be a function of how much you put down. 

Thank you for commenting and providing your insight on these facts.

Try a Google search for managers or look for an investors group in the area that can provide personal recommendations.1.