I'm far from a get an LLC for houses touter, but large equity positions would at least have me examining risk mitigation and umbrella insurance policies. 

I mean to mitigate most of this is the location, credit and industry your tenant is in.. 

Keep in mind that this can be mitigated by asking the capital partner to escrow funds prior to the project commencing. 

The buyer's title company has declined to escrow the amount, even with insurance, to mitigate the lien and close the sale.At this point, if the title company arbitration is not successful, I will be forced to be litigious and file a suit for an unlawful lien.

I dunno, I'd love to hear from you, @Robin First , or others about mitigating these risks

But there are some things you can do to protect her and you and mitigate the tax burden.

Unless you are in an upper tax bracket, your personal marginal tax rate is likely to be lower than the passive corporate tax rate.You will also hear the argument for holding properties in a corporation being the mitigation of personal liability and the shielding of personal assets from creditors.There is some truth to this, but not as much as one might think.  

That being said, reserves, solid CF fundamentals, mitigating risk exposure, and running it like a business will allow you to weather the storm.

Some will tell you it is high-risk but being educated is one way as investors we mitigate that risk. 

Is there anyway you can mitigate the flood risk by building a rock wall?