Keeping one property alive with the profits from another

[William Kyle Walker]

Hi Bp, it's been a while since I asked a question. My question is, if I have a fund with let's say 10 LLCs that hold one property each. If one of those properties starts to become low in occupancy and can no longer service it's debt, can I borrow from the other LLCs that are within the fund to pay for the struggling asset?

[Nick L.]

You just create a written agreement between the entities that LLC A will borrow $x from LLC B, at no interest and to be returned by a certain time. That prevents piercing the veil.

If you are the sole owner of both LLCs there are no tax implications as the IRS will disregard the entities for taxation anyhow.