Lending Money to Yourself/Your Own LLC

[Greg Eskritt]

I am looking at purchasing properties that have at least 20% equity in them. My goal is to lend my entity 20% for a down payment which will be second mortgage and obtaining either private money or traditional financing for the 80%. My question is, what is the best way to do this to not throw any red flags with lenders? I understand the 2nd lien will not show up on the original closing statement. Should I use an LLC or C-Corp to lend the money to myself? My goal would then be to refinance the property in 6 months to cash out both of the original lenders and have one loan and my original down payment back.

Example; I find a property to purchase for $100,000. It is worth $130,000. I am lending myself $20,000 and borrowing $80,000 from ABC Loans. In 6 months when I go to refinance, they will see I have two liens (one for 20k and one for 80k). The goal is to have one loan for $100,000.

Anyone ever do this or have advice on it?