Deal in danger/financing issue

[John Cassel]

My brother and I are currently have a contract to purchase a triplex in our area for $134k. We are planning on doing conventional financing at 75% LTV which makes our down payment and closing amount around $40k. Originally we were planning on putting down $25k and having family/friends invest for the other $15k. With all expenses, debt and management considered the property is conservatively projected to make 12% COC return. We were going to structure it to pay out 8% simple interest to our family and friends that invested. All the banks I talked to seemed fine with this idea until time came to finalize the loan.

Is there any way to structure the investment like this to get around the bank financing issue?  They want to see that we have all the funds personally but the only way we will be able to do that is if I am able to pull out my retirement funds to close and then pay those funds back with investor money after the fact.

What am I missing?  Is this something a portfolio lender should be comfortable with.  I want to be able to continue to grow our portfolio but using a mix of our funds and family/friends investments.

Any help would be greatly appreciated!  Thanks in advance.

John Cassel