This is not to say that there are never bargains to be had, but practically speaking, if the lender does not want to protect their position, you must ask yourself why-why has the lender abandoned this collateral?  

You might need to buy the land and use that as collateral, save up a little to buy it.

I think the idea is that if the note is below collateral value the buyer could foreclose and acquire the property under FMV. 

Can I get use my home as collateral?

They should be able to let you cross collateralize, or leverage your buildings and use the equity for the down payment.

The issue would be with the friend or family member not really having anything but my word that I’ll pay their loan back (no collateral) correct?

The operating agreement needs to be your starting point on how to purchase the ownership interest, but the bigger problem is convincing the remaining partners who have no debt to pledge their entity's asset as collateral for your debt.       

In any case, nobody with any knowledge would participate with you as either a lender or partner because they would be running afoul of consumer finance, residential mortgage and homestead laws and regulations, thereby subjecting themselves to fines, penalties and loss of collateral and principal. 

Respect your tenants and the property and you will grow a great portfolio of cash houses that will go up in value.Get a stable of these cheap houses and you will discover that in the near future you will be able to do a 1031 exchange for better units or even commercial properties.Put up some sign to find tenants or others that you can negotiate buy like rent program.Do a mailing of every absentee owner in that neighborhood, make offers, ask for seller financing.A word on Owner Financing --- do not offer interest - do a principal only mortgage, build in an early pay off discount-- put in a substitution of collateral clause and first right of refusal in the mortgage.Stick to it and you will do well.

I am at a point in my life where I have the cash and collateral so have some options.