Implications to using a HELOC as a “Hard money lender”?

[Christine Krizenesky]

2 Part question-

This is hypothetical- wondering if there are any implications to using a HELOC as a hard money lender for our LLC to purchase a property that would be a flip, then once the money is made the LLC would pay "us" the hard money lenders back with of course the interest. Then that way we are using ourselves as the bank?

Would this money have to be used on a 1031 Exchange then ? Or can we pay down the other mortgage on our other property (a duplex) with that money since it is from the LLC account?