@Glenn Banks ok can you tell me more about it?

The process protects both their system and users against fraud and aligns with banking regulations, especially given the financial data involved in property management.

They switch banks and ask for an extension and add another $2500 deposit as a show of good faith. 

Most businesses, property management or not, fail due to the lack of sales, not due to the lack of systems and phone etiquette.

However those with no to very limited experience will never get a fix and flip loan  from a bank. 4.

I have a bank locally that will use DOT as collateral for loans.

Contrary to what companies may tell you that charge you $ to get "bank funding".

He's content to just walk away and let the bank have it.

He is securing expensive debt, not debt through a bank, isn't putting any capital into the deal and structuring the equity investment in a highly risky manner without any upside offered to the investor.

@Brice Alef-Torrisi putting each property in its own LLC is usually overkill.Getting a bank account for each LLC is typically something you need to do to avoid "piercing of the LLC corporate veil" (actually depends on tax selection you made for LLC), but is also overkill.You haven't indicated how you are holding the deed for the latest property.If in your name or same LLC, you don't need a separate bank account.If in separate LLC, you can create a Master LLC, have each property LLC hire the Master LLC to manage their affairs, and just get a bank account for Master LLC.This is an opinion, not advice, so lookup CPA Frank Alcini in Troy for expert advice.