​Be my own hard money lender?

[Mohamad Suleiman]

Hello, friends!

I am interested in buying homes wholesale, but I want to do a conventional mortgage. Since purchasing wholesale is nearly impossible with a conventional mortgage, I need to pay for the property up front (via a hard money lender), then refinance as a conventional mortgage. The question I have is, can I be my own bank/hard money lender? For example:

Super Awesome, LLC is a hypothetical entity I own with some cash in it's bank account.

I find a home for 100k and issue myself a loan (from Super Awesome LLC) to buy the property. I am the buyer, Super Awesome LLC is the lender.

Once the property is mine, I want to refinance with a conventional loan. The bank can pay back Super Awesome, LLC the loan and restart the cycle for property # 2.

The ultimate purpose is that I want to recycle the money that is in Super Awesome, LLC to keep buying home at wholesale price + refinance with a conventional mortgage.

Is this possible/legal?

Thanks!

Mohamad

[Russ Draper]

Well Super Awesome, LLC has no history, I am unsure if the bank would give a loan to it. Or are you saying give a loan to yourself? They might treat it as another sale. I think the hassle of "taking from one pocket and putting in the other" wouldn't be worth it.

I don't see why you even would need to do this, why can't you buy properties wholesale without?