Also I was planning to use a corp of some type when I buy for asset protection.

Eventually, when one of the tenants is clearly in the wrong, your duty is to protect the other tenant's right to the quiet enjoyment of their leased premises.To me, you are at that point.  

Leaves too much on the tenant to make sure the curtain is in place, plus it doesn't protect the walls.  

Since then I put up "Smile your on camera" and "This Property Is Protected by camera" signs up and haven't had anything broken into in last few years. 

One purpose is asset/lawsuit protection.  

But try to not slow it down, time is of the essence in this business.Expending 10 hours on a construction site at least once in your life and/or following the purchase process (for material and labor) during a few weeks  can give you a completely different perspective of many things, that also will help you to protect your time/money investment in the deal.You have to think for your market: how much you expect to charge for wholesale a property?

Does anybody have advice on how to draw up the contract and what kind of specific language should be in it to protect myself and my money?

I agree with the bank on this one because they are protecting their interest in the note, and I agree with the seller not to move forward.

If you are looking for asset protection, an LLC or land trust will not protect you.

Keeping the rental and option to purchase separate will help protect you in the case of a default so you can evict instead of having a judge force you to go through a foreclosure because a tenant claims equitable interest.