Transferring Profits from One Company into Real Estate Co.
Ok, Here is the scenario.... My partners put our first property under contract. They own another business for which they have a line of credit available. We are purchasing a Single family home to either wholetail, rehab to retail or possibly sell on lease option. They have already began purchase processing under their business entity. They are thinking that once we close on sale of the property that they will take the profits and immediately dump them into our Real Estate investing LLC. Is there any issues tax wise or legally that would cause a problem?