In this case, he gave us ample notice to (most likely) fill that slot, however, I'd like to protect us in the future.

Too many in your shoes over complicate real estate and spend unnecessary time and expense on tax planning & asset protection and in doing so, take away from the real estate.

We are tending to be more conservative there to protect ourselves from any big misses. 

The beneficiaries are all hidden from 'adversaries' who may want to sue you, but you must pierce that veil of protection when it comes to lending. 

Hi,If I buy a apartment doing a seller carry back, how do I explain to the seller how they are protected if they carry a 2nd position note subordinate to the bank?

He has asked;"Provide protection around water heater or furnace to prevent children from making contact with theseappliances."

Any advice or pitfalls that I should prepare for or protect myself from?

You’re on the right track—setting up separate LLCs for wholesaling and building can simplify things and offer liability protection, plus putting properties in their own LLCs keeps assets safer as you grow.

The goal here is to reduce liability.Consult an Attorney for Liability Options: An attorney could advise on setting up an umbrella insurance policy to add an extra layer of liability protection.

Then it will go to tax sale and typically back to the county.The mortgage company could try and repair the property to protect their asset but it depends.