I had a unique perspective of how these two industries working together.While performing an inspection on a house, I got to chat with the seller and found he was a commercial construction superintendent for a large local company.

However, no mass exits. 

No?

I realize alot of investors have absolutely no asset protection ie LLCs for their properties and have been told by a couple of attorneys that im over thinking and perhaps paranoid of being sued, california as well as the entire US is known for excessive litigation.

your comment around "approvals will be easy to get" gives me pays if you've not done this type of project before, I understand your logic, and I don't know your local municipality but it always seems to me that no matter how easy we think a project or approval is going to be, something always comes up.

The land banker, the long term landlord, the neighbor that wants to expand their home, or the horse owning owner occupant with no other options?  

There's no difference in a local flipping a house than flipping the small mixed-use building that is vacant in town into a couple commercial units and some apartments above. 

I'm in agreement but I'm not entirely sure where I'm going to need to create the LLC since the property is no in our state of residence.Do I create the LLC in WI (the state the property is in) and pay for a registered agent in that state?

Although there is no way to prove this, (I reside in FL; the investment property is in AL) my GC tells me the unit was secured by a cage and bolted down.  

It's a breach of the broker's fiduciary duty to his client (the seller) to bring in as many qualified buyers as possible in order to get the best price possible.Private agreements by the NAR will be no defense unless in the listing agreement between seller and broker.