If so how do they lend money ( what kind of collateral is required)I can raise the remaining 80% and pay off the sheriff office, and later can i apply for a home equity loan ?

Remaining a renter puts you on the right side of political will.- Because of the way rent-value ratios tend to work in coastal cities, you can very likely rent a better house for a lower monthly cost then you could own.

He brought about 40% of the cash to the deal along with the labor and I brought the remaining 60% with some personal labor (mostly yard work.) 

They divide what will be paid through the incentive and the remaining costs to you.

The other family members living in the property will also be paying some form of rent to make up the balance needed, or 1 of the remaining units will also be renovated and rented to an outside tenant for an additional $2200 per month. 

., if there's 3 of us, we all put in 1/3 down payment but I own 45% and they split the 55% remaining ownership (give up 5% each for not having to work)What are your thoughts?

My husband and I went in with him and upon learning he was low-income, the Humane Society did not even ask for the fee.When a tenant passes away, we provide a $50 "Love Gift" to the family remaining in the home and a sympathy card.When a tenant gets married, we send a gift.

It was interesting because there was a piano in the basement and some other random junk, but other then that the house was pretty clean.We decided to place an offer on the spot and I made a point to add that we would be more then happy to take care of any remaining items that the owner didn't want to be burdened with.

The remaining partner held the majority of the equity (actual split unknown), but was a silent partner who did almost no work or decision making himself (nice, but super busy guy). 

I also see price increases slowing, but it remains a healthy market and will for some time if the supply side doesn't go overboard.