Lending Money Between Your Companies

[Wendy Black]

We have one company under which we buy SFRs and another that holds our mobile homes. We're looking at purchasing another mobile or two, but we don't have sufficient funds in the mobile home company to support the purchase. The SFR company has the funds. We prefer keeping the companies separate.

We're considering loaning the funds from one company to another. Has anyone done this and can offer advice, or would it be more advantageous for the SFR company to buy the homes and then transfer them to the other company?

Thanks.