Dual LLC’s, seller (self) financing, and becoming the bank

[Aaron Smith]

So I had an idea, I’m not sure if it’s even legal. I did make an honest attempt to look it up online and couldn’t find anything regarding information on it.

The objective behind the idea is becoming the bank. Capitalizing on amortization, the same way the banks do.

Say I had a Wyoming LLC and a Washington LLC. The Wyoming LLC owns a property outright. Can I sell it using seller financing to my Washington LLC? Still rent it out, that way a tenant is still paying the principal and interest, I'd still beable to write off the interest and depreciation, however, on the Wyoming LLC side, I'm getting paid the interest instead of the bank. Is that legal to do? Play both sides of the field so to speak.

If this IS indeed possibe, when I get to the point where I have no more depreciation available to write off, could I then sell it back to the other LLC and flip the script?

Robert Kiyosaki, as well as some bigger pockets guys say “don’t pay off rental properties”, but does that actually make sense if you become the bank?