Looking for a flexible Commercial Bank in Knoxville, TN + dilemma

[Igor S.]

Hi,

Considering buying a commercial property (900K) that will require a build-out (300-400K). The seller is an older gentleman who owns it out right and only wants to go either "seller-financing" or "lease-option" route since his plan has always been to use it as his pension plan for years to come. My bank refuses to be the second-mortgage holder and we don't have the money for the build-out. Seller doesn't have that much money either (additional 300-400K for the build-out) to finance the entire deal as the bank would.

1) Does anyone know a flexible, investor friendly bank in Knoxville, TN that would not mind holding a second lien?

2) What are the pros and cons of lets say 5yr Lease-Option for us?