Do you want "safer" investments or do you want massive cashflow investments (that come with potential pitfalls)?

ALL properties are foreclosed on.I haven't met an investor yet that can tell the future or who knows enough to avoid all pitfalls. 

Basically I just want someone wise enough to warn be of pitfalls as I go.So assuming he wants to profit somehow, how should I structure our relationship?

We have a fair number of subject-to deals in our portfolio and there are definitely some pitfalls to doing these types of deals. 

Besides not being able to get a full snapshot of the condition of the property, what other pitfalls should I be aware of when purchasing these types of properties and how should I navigate those problems?

Understanding the market is more important than anything as well as knowing all of the potential pitfalls that may be glazed over or underestimated from a cost perspective.

So all the pitfalls you have above are avoided.

Know the pitfalls of each type of situation, this helps especially if you're not the only investor after a property."

She wants the highest price and best terms for her with the fewest possible contingencies on the offer, which she'll probably write.You want the lowest possible price on terms that are favorable to you and enough contingencies to allow you to back out and recover your deposits if your financing fails, home inspection isn't satisfactory or something else comes up in due diligence.Until you have a bunch of deals under your belt, you need an expert to guide you through the process and navigate the pitfalls. 

Potential pitfalls etc.