There is a further discussion to be had about protection from establishing LLC's but then there is a counter discussion on piercing the corporate veils and getting to personal assets.

I swore off the Big Banks in 2009 when, as a Chase mortgage customer looking to move to Georgia for a job relocation and looking into a new mortgage loan, was told by Chase "Oh, why don't you call Quicken Loans" (Translation: Drop Dead).  

Are you going to record the option at the courthouse to protect your position?

First, understand that you are the customer.

He could probably deposit some cash aside from owning the land itself, but i highly doubt if he would like the idea, he would rather roll it in a business than letting it stay in the bank.The end customer is still going to be him, he won't be selling it to somebody, so I am not sure if that mkpakes it much easier or much more difficult getting the loan.If your advice is skin in game, maybe free and clear lot plus approved permits will be the best route, then shop for loans.

Also...If they (the customers) are not paying you, their opinion doesn't matter.Joe

Should I put the inspection contingency in just as protection for myself?

However, IMO the worst part was the customer service - quite difficult to work with.  

In order to be completely protected it is good practice to make sure both the title & insurance policy are in the same "business name".  

No commission splits and no ongoing fees, just a $680 fee on each deal, with a good customer service survey.