A typical big business move, another company owns the Real Estate and the operating business pays rent (mutual owners separate entities). Example Sears stores leased space from a Sears related Real Estate Company.
So what, my former comapny rented over 3500 sq/ft and who do you think we payed rent to?? That's right, another LLC the CEO owned. WHY you ask?? Because that is GOOD BUSINESS.
What's the point? That is so common I'm curious why you would think that is an issue, the guy probably isn't an idiot.
Many investors have more that one LLC. I have seen investors with one LLC that is a mortgate company and it rents from an LLC that holds the real estate. Its so if one gets in trouble the other holdings are safe// many people hold only one property in an llc so they have many single property llc holdings to protect investment. One llc get sued and the others are safe.
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