Advice for creative financing for down payment of Owner Carry

[Matt McElravy]

A friend of ours is moving to Hawaii and wants to sell us their 56 acre property that includes a business that generates $220K annual gross revenue (about $100K Net).  They are asking for 1 million dollars.  They will Owner Finance $600K and want $400K down.  We'd like to make this work but don't have $400k.  Looking for some creative ways to come up with the down payment.  We can come up with $100k by pulling out of another property we own.  We'd prefer not to take on partners.

Would it be possible to get a loan to buy the business to use as the down payment?  If we did, would that generate a tax consequence for the seller?  

Thanks in advance,

Matt