So I stumbled upon this website PrivateMoneyGoldmine.com doing a google search.  Does anyone know if they are legit?  Could be just "pay us your money and never see it again" kinda thing?

I think you're right about the private money here.

My dad has a deal he’s trying to find an investor or private money.

If that doesn't work then meet with the tenants after the sale and go through the lease, be nice and professional, and let them know you are going to improve things but be firm on the terms of the lease. 

As well as for financing, as worst case scenario I have a large line of credit as well as a few private sources I can use to get it financed.Is that for everyone?

These are professionals with additional training and a stricter code of ethics.

Meanwhile, you obtain a loan from a private lender that the dealer will introduce you to.

These are professionals with additional training and a stricter code of ethics.

(He actually borrowed 130k from private lender) So 160k in and 200k minus cost to sell so 185k out.

Either you sell at a higher price and give him the controlling unit or somebody else sells and you're left holding the bag.This guy wants the whole building to take it private and convert to apartments.Somebody else will stand in his way and prevent that, but their life will be miserable.