$5 Million in liability insurance is a lot cheaper,,,and if an injury or death is a result of your negligence you could be held personally responsible, no matter what the structure is

Just careful with the shady areas given the non-negligible welfare population over there.

If that's the case then per the contract they can only come after the earnest money.Of course if you had gross negligence,fraud,criminal activity etc. they can still come after you.If you tied up a property and then didn't perform the seller is being impacted in a negative way.Again with a wholesaler this is why non-refundable earnest money would be required if it was my client.If not we simply wait for another buyer or can kick them out of the contract and accept another offer from another buyer at any time.That way you have the wholesaler working on the long shot at the same time as pursuing other buyers.

Basically, what is negligence?

Also, who says you can't be sued for negligence.

Management shall not be liable for any damage or injury to the Resident(s) or any other person, or to any property, occurring on the premises, or any part thereof, or in the common areas thereof, unless such damages is the proximate result of gross negligence or unlawful act of Management, its agency, or employees and Resident agrees to hold Management harmless from any and all claims for damages no matter how caused, except for injury or damages for which Management is legally responsible.

My assumption is that you are not running a business through your SDIRA that is willfully negligent but rather that if your SDIRA investment is sued (e.g. tenant burns the house down and sues you) that 'normal' insurance will protect you and your investment.

Prosecutors sued the owner and leaseholder for “negligently ignoring safety hazards.”

Most likely in this case unless you are negligent you have nothing to worry about; however, if the LLC becomes liable it is likely you could as well.What you do have to be careful of for tax purposes is when improvements and repairs are made to make the property rent ready.

More importantly as a human being, who wants to live knowing their negligence lead to someone's death?