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

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

You are dealing with discretionary spending from your customer base vs necessity spending with an LTR.  

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

Luckily, said customer saw our IG post about it and called me in a panic. 

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

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?

Far too many variables- I’m wrapping up a garage conversion adu right now for a customer and the permitting process was a bear.

There are a couple but its going to have to be pretty permanently attached to the land to protect the foreclosure option

Of course, there are a lot of things to look out for...setting up an appropriate contingency reserve for unexpecteds, getting an accurate scope of work, properly knowing what your time-value-of-money costs are going to be, making sure you're contractor is not pulling crews for other customers, knowing codes and getting your permitting right, and the list goes on.