Question on Being My Own HML

[Ike Stephens]

My wife and I own a few other business, one of which is an LLC that has a lot of available funds. Would it be possible to basically become my own hard money lender by using funds from the LLC to purchase properties (using BRRRR strategy).

Basically we would take a loan from the company just like we would from an HLM. We'd draw up a loan agreement and everything but it'd save a lot of time and hassle since I'm essentially the one approving the loan to myself. 

We'd proceed through the BRRRR strategy the same as we would if using an HLM.  Rehab the property and refinance ASAP. I'd repay the loan I took from my LLC and then move on to the next property.

The beauty of this is it won't be a hit on my credit so my DTI won't be impacted at all and I can give myself a better interest rate than a HML would.


Would a bank or lender have an issue with the source of funds used to acquire the property when I go to refinance? (I plan to use the DFE.)


Thanks in advance!