give myself a mortgage and then sell it

[Ari Bachrach]

I'm the standard BRRR investor doing a refi right now and going through the pain-in-the-neck process of doing a bank refi. I was thinking though - I know many people buy and sell notes. What if I basically gave myself a mortgage and then sold the note on one of the note marketplaces like notesdirect. Could that work?

Since the properties are owned in an llc, I would give the llc a mortgage from my personal funds with the name of the llc being the borrower. I then sell the note, and get my personal funds back. Other than the fact that I would feel ethically bound to disclose this to the potential buyer in the listing, are there any legal pitfalls to look out for?