162 Units, but how can I fund it?

[Peak Deshawne]

Hello all, 

Here's some backstory to my dilemma:

I recently met an investor who is looking to begin liquidating his properties. He has accidentally also become a great mentor and friend. After a few meetings with him and telling him about my desire to purchase 100+ units this year,  he told me about a property he owns that is having management issues. Long story short, he gave me the opportunity to investigate and audit the property manager. I found she'd been stealing rents (dated system of collecting blank money orders), upon other issues such as no bookkeeping, maintenance accountability systems, etc. I am now managing the property while working full-time in the Air Force. He knows of my interest in buying the property and is giving me this opportunity to manage/learn more about what I will eventually buy. 

The Deal:

The seller has mentioned he would be willing to sell me the properties "completely on credit." I can only assume this means seller financing the down-payment of a multi-million dollar deal. Too good to be true right? Well my intentions are true and I would like to buy it this year. The structure I am hoping for would be assuming the current note on the property while the seller carries the remaining balance of the purchase price. I would like to put $500,000 down (the same amount the seller originally put down when he bought it years ago) held in escrow to handle the capital expenditures needed after closing. I have had hands on all property finances, current maintenance, tenant complaints, and a general idea of what the property would need to increase the value.

Questions:
I have other properties with decent equity positions, I could raise $100,000 of the down payment but I'm not sure how I could come up with the rest? Would it be best to seek out a hard money lender? I would be buying the company that owns the property, so does the bank have to approve me to assume the note if I buy the company? I really want to buy this property. I'm going to begin speaking with local banks about my situation and see what options there may be. Has anyone ever encountered a deal like this? 

Any and all help is appreciated!