Much needed analysis of possible first investment

[Handel Carter]

Hello bp community. I'll get straight to the meat and potatoes. Formed my holding company. For my first investment, I was hoping to quit claim, warranty deed or flat out buying a 3 unit property, from my mother, that has about 25k left on the mortgage. The plan is to get it as a solid first asset to the LLC and use the appraised equity for either a line of credit or pull out the equity to do minor rehab to the property then use the rest to continue acquiring property. If purchasing outright through financing, it will be for the remaining mortgage price, which will leave me with about 40k equity and a crazy low mortgage payment. I spoke to a private lender about my intentions and he said he's never structured a deal like this. That is mainly because my mother is a 1% stake holder in my company. So it will be like she's selling the property to herself. Is that so? Is this really a problem? Is there a simpler way to go about this? Thanks for the read bp.