Mutual funds invest mostly in liquid securities by definition those typically have hundreds or even thousands of shareholders.  

For example, you can borrow the money from your investors (thus paying them a set interest rate) or you can make them shareholders/partners and give them a percentage of profits.

C-Corp taxation is one of the highest structures and is subject to "double taxation" on the corporate profits and again at the shareholder level when the profits are distributed as dividends.

As a shareholder of the company I also got disbursements which are taxed at a lower rate than my salary...My understanding is that doing flips and new construction it is best to be under an LLC (and I believe that you can be an LLC and elect to be taxed as an S Corp).Sounds like its time for you to add a CPA to your team.

The property is under an LLC on with shares split evenly between 3 share holders.

I appreciate your advice, and yes the QSST has one beneficiary, with each shareholder having their own QSST I believe.  

LLC money stays in the LLC until you do a distribution to yourself or other LLC shareholders. 

Is it better to transfer the money to my personal account as a share holder distribution and then into the LLC? 

If it's a corporation account then the buyer should provide documentation that they are a controlling majority shareholder and they have authority per the corporation to enter into such a purchase agreement and be binding upon them.    

(Admins - I am not soliciting here - just showing the basic price structure of fixed costs that are involved in this calculation)So fixed costs are somewhere around $1000.In order to save that amount, you'd have to have Shareholder Distribution Income somewhere in the neighborhood of $6500.00