How do you protect /prepare yourself from such a lawsuit besides insurance?

This strategy should also protect the downside a little better by offering a larger pool of buyers in the future.The way we try to claw back the cahsflow/equity is by targeting short sales or wholesale deals that may require rehab but are priced well below market value.We are not reinventing the wheel, simply implementing a tried and tested method.

A security guard is a person who is employed in various places to protect public or private properties as well as people.

In your original post you mentioned many things, and lot of scenarios, so if you are concerned about contingencies, protecting your interests, drawing up 1st or 2cd mortgages, etc.....that is why I suggested an attorney.

As most attorneys specialize in a particular area of law, the attorney advising you on your lease will not likely be the best person to advise you on your corporate/asset protection matters (and vice versa) - be wary of those who claim to do both, as "generalists" will know the basics, but the basics are only enough when things are going well...

Asset protection and anonymity?  

I'm passionate about helping owners protect their assets and identifying ways of increasing investment property revenues.

In reality, it is one that knows how to navigate the process and protect their client in situations like these

Sounds like the broker(s) may be trying to protect his commission on the deal, if he is the person that closed the refinance. 

All of these things that make it hard to get started for you also make it hard to get started for everyone else, which protects you.