Insider Trades To Build Value?
why would an office be purchased by partnership in 02 for 1.2 million then after going vacant in 2004 for a year then be sold to one of partners for 1.5 million in may 2004, then transfered to an llc owned by original partners for 1.595 million in june 2005 and finally be sold to out of town third party for 1.520 million. Does something unusual here ?
It seems to me that the partnership bought the property to take advantage of its appreciation. Then they sold it to one of the partners in order to pull the equity out. Subsequently they transferred it to a LLC in order to take advantage of its asset www.protection.Lastly they sold it to the out of town third party in order to relieve themselves of the loan.
Quote:
On 2005-07-03 12:56, ditsleg wrote:
why would an office be purchased by partnership in 02 for 1.2 million then after going vacant in 2004 for a year then be sold to one of partners for 1.5 million in may 2004, then transfered to an llc owned by original partners for 1.595 million in june 2005 and finally be sold to out of town third party for 1.520 million. Does something unusual here ?
[ Edited by Darryle-CA on Date 07/03/2005 ][ Edited by Darryle-CA on Date 07/03/2005 ]
the original 2002 purchase was from a disinterested third party ,all transactions since have been among partners ,till final sale to another disinterested third party ,did you misunderstand anything?
I agree that something sounds a bit weird....why would you sell it to another partner to pull out equity and have to pay cap gains tax? when surely there would be some sort of line of credit you could get to pull equity out.....
could it be a scam to make building appear to be worth more if someone did not investigate who owners of various entities were they would think building sold at arms lenngth which it has not in over 3 years