Whether or not to set up an LLC for each property really depends on your goals and how much liability protection you want.

It could provide the belief that an unpermitted unit built next month will get protected.  

Can you articulate the risks you believe you will  protect against and more importantly how this Wyoming LLC will aid in your objective?  

This is advertised as a “protected” note as Aloha is supposedly fronting the first $100k in the line of loss.

How can I best protect the seller as well as myself?

Quote from @Scott Tennell: For real estate investors who have worked with private money lenders, what strategies have you found most effective in structuring deals to ensure both parties are protected and the funding process runs smoothly? 

That's a way to get both anonymity and liability protection.

what is damage protection insurance? 

There is no 100% guarantee out there.Managing your property properly and having great insurance are probably the two best ways to protect yourself.

If there is a due on sale clause in the loan doc then it doesn’t matter what the loan officer told you verbally.I’m not an attorney, but from my understanding of the loan is still in your name personally a good litigator can pierce the veil and your LLC protection wouldn’t amount to much.