These people have a few years to mature, have been given responsibility, developed, proven themselves and have a lot to loose.

A carpet layer puts down carpet, it comes loose and someone trips over it, then it is doubtful they could ever pierce the veil to get to your assets. 

If Mike looses the suit then Mike's assets are exposed.

I rarely see any buyer loose their EM.  

I think your advice does not reflect that this is a business and he is loosing money.

I mean the most direct route from A to B.Get a website.Make it credibleDo SEOFind out the cost/deal for PPC and FB adsDo both FB ads and PPC.See which one gets more and better deals.Get a highly discounted property under contract.Find a good contractorFlip that houseWith the profits, do it again.And again.Now you have 3 flips done.You should have plenty of money and experience to scale.Find a few more good contractorsFlip 2 houses at a time.Get your flipping system fine tuned.Now flip 3 houses at a time.Now you have flipped 8 housesWith all that money, experience and a crew, you can not let loose on PPC and or FB ads, and by now you should be ranking #1 because of SEONow you go nuts on the leads.

For example in Texas you might buy direct for $10,000...this Zillow seller resells to you for $20,000, but the original owner might have 2 years of redemption rights at $10,000+penalty....so if they redeem, you would loose approximately $10,000.   

The second tenant we don't want to loose, They pay their rent on time, the property is meticulous, yard is cut, HVAC filters are changed monthly...aside from smoking, they are perfect.

3) Should I be worried about choosing a wrong custodian  company and loosing my money?

To loosely paraphrase Daniel Pink, these days expertise is more about being able to filter alllllllll that information down into a clear way that benefits your personal situation.