However, it's crucial to verify with the specific lender, as policies can vary.Regarding recording a lien, if the lien is recorded, it formalizes the debt and provides legal protection for the lender, which might be required by your private lender.

A promissory note and deed of trust are important but there are also other disclosures and documents you should collect to help protect the loan - Lender's Title Policy in 2nd position behind the bank loan, Loss Payee on the hazard insurance policy binder behind the mortgage lender so your parents get reassurance they'd be paid back if there were any claims that need to be made.

It could be a casual conversation with the dr that got blown out of proportion or a report that says it could be xy or z in his lung but you want to protect yourself just let him leave.

I post frequently about the unnecessary complexities of most real estate investors asset protection structures and the point I normally emphasize is the lack of attention placed on the day to day operations that are far more critical to reducing liability exposure.

They can coordinate and supervise the project, protecting the owner in a variety of ways.

Liability Protection Asset Protection: The primary reason for holding real estate in an LLC is to protect your personal assets from liability.

For example: your current interest rate, rental rate, expectation for appreciation, tax benefits, leverage and inflation protection. 

This structure provides a way for us to be involved, be protected, and most importantly, build relationships.

It would most likely not give you asset protection since its a non-arms length transaction.

I plan on installing some form of termite protection after purchasing anyway, but is there anyway to make sure I'm not buying a house with a full blown infestation that could become a bigger issue?