How to use another person's money for a down payment?

[Andrea O.]

Hello, 

I am looking to purchase a 3 unit rental.  A family member currently lives in one of the units and the seller has no mortgage on the property, but is elderly and ill.  I have excellent credit and a debt to income ratio of 18%, before taking into account any loans on this property.  I do not have cash for the 30% down payment required by the bank.

Another individual has expressed interest in covering the down payment, for a modest return on his money.  My problem is that the bank has stated that the down payment money must come from my own personal funds.  

Do I have any options to take advantage of this other person's offer to help with the down payment?  I am uneducated (but learning) about how this all works, and would appreciate any advice on how I may be able to structure this deal.  

Even if there is nothing that I can do right now for this property, I have already modified my budget and starting putting money away for a down payment in the future.  Exploring this site has gotten me interested in real estate and the potential to build a much better retirement fund than my current 401k, that has been steadily losing money for the past year.

Thanks!