You will give them the land to build and they will build improvements on it and you guys split the profit and equity? 

He also spoke about getting a partner to put up the money for that, you doing the legwork, and then splitting the profits 50/50.I also heard about calling the craigslist landlords and asking them about wanting to sell.

Where is the right place to pursue a right answer. we want the roof company owner’s license can be punished at least.We talked to a lawyer and was told it is not deserve to sue for a roof.This is the only experience to work with state or county for a problem roof.

Karelyn , I'm curious as to what areas you did end up looking at and if you found anything worth pursuing.

Your exit strategy and profit sharing is the most important in my eyes. 

If you can make a profit on flipping it, or create some positive cash flow through renting it, I say go for it.

(all his risk) He is paying the builder (another brother) just like anyone pays a GC.When it's all said and done, they think they can sell the home for a profit, but they are not sure how to split up the profits, should the ratio be based on the percentages for example 23% to the father-in-law, and then 77% to him?

If he is serious about pursuing this then he will hire an attorney and you can defend your position.If you were dishonest and knowingly hid a problem in order to take advantage of the buyer, then I recommend you do the right thing and help correct it before he comes after you and asks for more.

Not sure you'd be able to pull off an additional $1k profit on a three family while living in one of the units unless you take on roommates in the one you're living in. 

How are people paying so much and expecting to profit?