Before I ask my question, I know that whatever answers come do not count as legal advice, and I should ask a lawyer, lender, title company, before anything is finalized.I have use Limited/Special Power of Attorney before for some real estate purchases, and I am planning to sell some properties, then 1031 them into others. 

sellers credit getting hammered lawyer letters.. and complaints to the AG.. 

Get a lawyer ASAP.

After hearing the lawyer talk about insurance companies and things he has seen I would never buy in my own name again.

How much does your lawyer charge for an eviction?  

If this guy is worried about paying a lawyer to draw up his paperwork and then you backing out, he isn't a real lender as that is just a cost of doing business. 

If you get paid you are good to go otherwise you turn it over to your lawyer to handle.

I've heard a good lawyer could find holes in that setup and wipe you clean.

The best way to structure this partnership is inside a lawyers office.Create a legal entity with you 2 and hash out an agreement regarding exactly what each of you will contribute for what percentage.

Tony, I think it's a great strategy to be able to purchase a home but, would advise to make sure you have a real estate lawyer look over the paperwork BEFORE you sign it.