If you have the money, buy some AR lowers while you can too, before Osama takes over - worst case scenario.
AKs are not that hard to build provided you have a rivet tool and some jigs. You can also build them with screws. Your dealer friend seems to have built a really nice AK and the price is okay, in line with the current market. A few years ago, the Romanian kits were selling for like $100 and receivers for about $70, so you build an AK for about $200, but times have changed, the kits are drying up, and demand is increasing.
Back to the dealer...I hope he knows about 922r compliance. Ask around, especially on boards like AR15.com's AK sections, and you'll see 922r is a huge consideration with all of us AK nuts. Better yet, write to the ATF or look at their website and you'll see I'm not kidding.
In reality, some folks just don't know and may be in violation of Federal Law without knowing it. I am NOT saying that is the case with your friend. PLEASE, just ask him which US parts are in the gun. Just remember, no more than 10 parts can be foreign made. By law, a stamped AK has 16 parts for consideration (15 for a milled AK):
2. Muzzle attachment if removable. A permanently attached brake is considered part of the barrel.
4. Bolt carrier
6. Trunnion (considered part of the receiver in a milled AK)
9. Sear or disconnector
11. Pistol grip
12. Handguards (upper and lower count as one)
13. Magazine body
14. Magazine follower
15. Magazine bottom plate
16. Gas piston
Remember that this only applies to post-ban guns too, which yours is. The math is simple after that...just make sure you don't have more than 10 foreign parts. I don't actually know of anyone getting prosecuted for not complying with 922r, but I'd hate to be the first one to be made an example of. It's best to know the law and how you are complying and it's a good idea to know your gun inside and out.
All of my AKs are postban and have been converted to pre-ban with the use of US-parts. On most, I wind up with a 10/6 split, and most people do, but I have a few with a 9/7 split. Regardless, if your gun is not in compliance and you want it to be, it's easy to do. In fact, the only part that really requires some work is the gas piston replacement.
My furniture looked horrible when I got it, much worse than yours. I mean it really looked like feces. I sanded it down and applied many coats of Tung oil. Easy to do.
Pittsburgh Steelers fan till the day I die, and then some.