We seem to be on the same page about everything and there is a respect and trust established, but they always say, "you don't need a contract ...until you need a contract." 

He will be getting a few properties on a deed of trust.

Definitely, get a lawyer, I don't trust you.  

Another simple deed change vehicle that will not trigger a due on sale, tax consequence or insurance problems (check w your carrier):  put the title into a trust. 

This will establish trust and allow you to become a stronger Wholesaler/Investor.

You don't get title insurance but because its a relative, if you trust them (I know and trust my seller), you should be (mostly) safe. 

However, there are still companies powering through finding ways to make deals happen.With the protection the government is providing to banks, they are still able to lend as well.Three key words to remember when raising capital that will help you get started: Relationships, Plan, Deals.Relationships - This industry is based on relationship building and trust.You must establish trust with investors.

You should have a contract already written that you've reviewed with an attorney, title agent, or some other trusted professional. 

You can definitely offer a note and deed of trust for the investment vs a syndication or JV.

There is zero concern for a lack of trust in this situation.