I have talked to several banks about the possibility of borrowing money from friends and/or family to come up with the difference needed to make a downpayment for a house/multi-family property and would just pay the family member/friend back later. I was told that was a major "no-no" due to that being considered mortgage fraud. I hear of people doing this all the time without it being mortgage fraud. So, my question is, how do you do this legally with an LLC? There have been many times where I'm just a few thousand short on a downpayment on a good property in a good location and missed it because banks said no to the deal.

Thanks, everyone!

JJ