LLC Legal Question?

Ok this is going to be long so bear with me, as Im a new investor working with another new investor. Lets say investor "Tim" owns a B-Tust and is willing to use funds to purchase investment property. He buys a property lets say at $30,000 and wants to transfer to "ABC" LLC. "ABC" LLC is owned by Investor "Tim" and Investor "Sam". "ABC" LLC sells this same property to "DEF" LLC for $50,000 "DEF" LLC is owned by investor "SAM". Investor "Sam" "DEF" LLC, goes out and gets a $40,000 first mtg from "A" Bank and "ABC" LLC is willing to hold a 2nd mtg for $10000. to purchase this property. Is this legal? Mike :-S