Receiving Investment Money from Another LLC

[James Letchford]

I have a friend that has a successful non-real estate business in an LLC. He's interested in passively investing in the real estate work that I'm doing, but would like to do so from his LLC.

Here's are my questions:

1. Is there any advantage for him investing via his non-real estate LLC? I.e., tax advantage, write-offs, etc.?
2. Is it unclean for his non-real estate LLC to partner with my real estate LLC on a project?

Thanks in advance for any inputs.

[Darren Eady]

@James Letchford

Hey James, I spent my youth in Dana Point, right next door to you.  

Your friend may have some tax implications for his current LLC, but probably no different than if he had two LLCs - and in California - having multiple LLCs is expensive with an $800 renewal each year.

His only concern would be liability across companies.  Real estate does have liability on property and I'm not sure what his other business is and if it's liability could affect your real estate.  

As a lender, I like a separate LLC per property, if I can get it, or at least one LLC per industry.