Family friend needs options to come up with downpayment...

[Mo Karney]

So I recently put under contract a 90-unit building and the downpayment is $600,000. I can put up the entire amount but would rather take a smaller slice and a family friend is more than willing to put up the other $300,000. Problem is that his bank will not refinance any of his current rentals as he only has about 25-30% equity on his homes. His personal residence is at about 40-50% equity but his current banker isn't sure if they can do a refi in time for closing (about 3 weeks out).

Here's what he has:

35 SFHs (all cash-flow positive, put about $1.2M into them and currently has about $2.4M of equity and market value of almost $7M)

Personal Residence (worth about $500k and owes almost $300k on it)

$500k in his 401K (max loan is $50k, and withdrawing isn't an option as he's in the 35% tax bracket + 10%)

He has over a $2M coming in from an overseas sale within the next 3-4 months so he's willing to pay a 10-12% interest if needed. Would there be any sort of company that would do a hard money loan on his SFH portfolio? Or perhaps against his 401k? He'd only need $300k so he can put up the $500k 401k and should he default, he would cash it out and net $275,000 on his 401k.

Any suggestions or guidance towards a company that might be willing to help would be gladly appreciated!