Basically your company and his company need money - instead of taking a taxable distribution from your own IRAs to infuse cash into your own respective companies, you are cross-lending to each other to accomplish the same end, which results in the personal benefit of infusion of cash into your company - without a taxable event to you -and a loan that you or he don't necessarily have to pay back.  

Here are some signs you might be heading for major problems – or worse, financial disaster. 1) Frequent Cash Calls Do you ever call your investors and ask for a “temporary” infusion of cash?

If you are struggling with capital infusion, offering up your or a partner's free and clear assets can do wonders!

Will start with the left and move towards the right end of that spectrum as time passes; just trying to get some capital infusions going.

I am reinvesting every $ I make back into the business along with a cash infusion every March. 

I was impressed with the design, quality of service, and immense creativity infused into every aspect of their business.

For more detail on #1/#6:  For someone in your position (low salary, 1 time big cash infusion), unlike some other people on this board, I think it's critical that you set up a low-debt income stream vs leveraging up, because you simply can't manage through a rough patch and you could lose it all if you have a couple emergencies on top of each other. 

I don't suggest you pay a lot of points or make a large cash infusion. 

If you have a sweet tooth like me then try out Glazed and Infused - bacon donuts are the best!

A new roof is usually more than $5k and you could have a property go vacant for a month or two AND need an infusion of cash to fix it up in between tenants.