No money down, finance a commercial property that is cash flowing

[Michael Horstman]

I have a seller who wants to sell a commercial property that is cash flowing NET $5,856 per month. The seller is asking $1 million because that is what the property appraised for (based on comparables and a FUTURE projected rent increase). The seller is getting verbal offers around $850k. I spoke with a commercial lender and he says a DSCR loan would lend me $665,000 if I came up with the rest. I ran the numbers and told the seller that I can offer him (full price - 3% commission) $965,000 with $665,000 from the lender at closing, if the seller finances the remaining $300k with terms. The seller is interested in this option with $665k up front because he wants money up front to consolidate some other debts and to walk away from this property. The seller owes about $200K on this property. The challenge is that the lender wants to see me bring $300k to closing. Both the seller and I don't have $300k in liquid funds to bring to closing.

My first question is: is there a way to show a $300,000 deposit as a credit on my behalf at closing (debit on seller's side), as if I put down a $300,000 earnest money deposit or early downpayment to satisfy the lender? Second question, the seller will want some kind of recording of this $300,000 but I don't want the lender to have to count this against the DSCR, so is there a way to give the seller a $300,000 note that is secure, without causing the lender to change their position? Maybe a second position mortgage?

Open to answers for both of those questions, as well as ideas to structuring this deal differently. How do I get this seller some money up front while financing the rest? Thank you for your help!