Structuring a multi-investor agreement

[Dan Johns]

I'm needing some advise:  I currently have three sfh investment properties. I'm purchasing a 4-unit property and have several financing options.

The first is a seller financed deal that looks great at the start. Rate is at 6%. Requires no appraisal, low acquisition fees. The seller wants 25% down. Also, this is only for 10 years, so between now and then we will need to refinance and spend those extra, saved fees anyway.

The second option is to use our broker. Rate is at 5.62% 30 year, but with all the traditional appraisal and associated fees.  Also 25% down.  This is where my question comes in.  This is a $450,000 purchase.  I have $50K ready cash, but like most investors, most of my funds are tied up in other properties and I've pretty much leveraged them. So I need to come up with roughly $90K to close the deal.

I have 401K funds that come available penalty-free in 1 1/2 years to cover all options.

What are my options and how would I structure them?  

The way I see it I could borrow from family/friends, but those funds will need to be traced, so unless I'm sneaky and get "gift letters" this won't fly with traditional financing.

I could structure a deal and make them partners to the investment, but I want to I will want to pay them off within 1 1/2 years.  I also really don't want them on the deed/title as I'd likely have to go through this again to get them off said deed/titles.  I'd like your take on how this deal might be structured.

Thanks for your input.  Dan