For instance, if I was to find a good real estate deal and I convinced another investor to contribute 50% of the  funds, would I have to provide a contract to basically say I wasn't going to steal his money?

SCAMMER steals the photos, makes their own listing...typically about 1/2 the price of normal rent and with some key words that turn people on...like pets allowed, no pet deposit, maybe no deposit, just 1st month's rent....something like that to make it attractive. 

That's enough to prevent them from trashing the place or stealing appliances.

If you're looking for good local contractors, I'm going to steal a quote from one of the BP podcasts.  

Cooking meth in the back of the property, stealing his mother's disability checks, etc.

So caution.. if you use them... make sure you have a for real deal.. plus their fee's are of course since its 100% financing at the very top of what HML cost.. one thing I like to recommend those looking for 100% financing is just get a money partner give them the lions share for them putting up the money.. you don't risk money and you start to build your experience and credentials then after a few you can go to a regular HML like lending home that will do 80% or 90% with only a modest 190.00 fee up front.also since you made this post you will probably get private messages from the scammers that work BP telling you your all approved but then just wanted you to send them 500.00 bucks etc.. to show your serious or some other bull crap... also facebook and linkdin are loaded with those crooks.. they are nothing but totally scammers they don't lend they have no money they just try to hook you for the small up front fee then will go dark on you... think lottery scams and other Jamacian and Nigerian prince scams.

Well if that small loan is in a bad area that can't sell, and big loan is in a great area, and the buyer got it at a steal, then it's not the case.You won't get many lending offers on low cost deals except for one company down in Philly, who doesn't mind taking over your property...

I told him about the REI meetings they have in our area where local RE investors support each other, give advice, network, etc. to basically say "tons of people are doing this," and his first conclusion was that it must be some "investing club" that's trying to steal my money and convince me to buy real estate from them so I take on the risk and they try to get in on the management side to take a cut.

“We are stealing the future, Selling it in the present, and calling it GDP.”

I am sure everyone on BP is a saint but someone may steal the deals from right under your nose.I also think you are underestimating the closing costs.