Process to lend to partners with interest (WA state)

[Anup Shah]

Me and my partner do BRRRR on properties locally. For most of those properties, we take HML and refinance once rehab is done. Now, I have some money coming in which I want to lend to buy a property and charge some rate of interest. Below is the process I am thinking of doing

1. Open a LLC and bank account.
2. Transfer money to that LLC from my account
3. While buying the property, lend from this LLC to fund the purchase and rehab cost. Create Promissory Note and Deed of trust and document everything.
4. Have partners (and me) pay interest for the period of rehab.
5. Once rehab is done, refinance the property to take the money out.
6. Rinse & repeat

Does this sound like a plan? Do you see any challenges? Do I need to have license to lend money to our own partnership? I am in Washington state.