It is usually caused by paying too much for a rental and therefore having insufficient cash flow to cover expenses.

Now, when seeking to refinance the subject property the OP seemed to question both the insufficient amount of capital to pay of the debt and the excessive amount of capital to pay of the debt.

I can't see any judge calling what your doing insufficient.

Accredited investors are or should be required, few small offices can accomplish that now and the structure needs to be compliant.Where brokers or even partners get in trouble is assigning collateral to a group to secure the funds, someone will be last to recover thier money and if there are insufficient funds, they or someone will lose.As a broker, you really need to be in a position to take any investor out of a deal, you also need to be able to take out the small investors who lack experience as they yell the loudest and it makes an attorney fight harder for the one at a disadvantage.

If the language is present, then you will want to send some letters out citing the language and informing the borrower the payment is insufficient and illustrating how the partial payment was applied and essentially make a New demand on the new updated balance.

They have insufficient credit to generate a score which is good considering they haven't run up a bunch of charge cards and not paid them.Here is the problem.

The court cited corporate veil-piercing cases and set forth the following factors considered in a corporate veil-piercing case: insufficient capitalization, non-observance of corporate formalities, nonpayment of dividends, insolvency of the corporation at the time of the litigated transactions, siphoning of corporate funds by dominant shareholders, non-functioning officers and directors other than shareholders, absence of corporate records, use of the corporation for transactions of dominant shareholders, and use of the corporation in promoting fraud.

I found out through my bank that this applicant consistently bounced checks for insufficient funds, so I'm thinking if I required the last month's bank statement that would tell me a lot of things.

If the OP's deal finder has insufficient equity capital to transact the many deals he is finding that have great upside then the capital is likely to come at a higher price.

Ask them what they read and who's techniques they studied.There will become a time when you become frustrated with your own progress and ask yourself: "Is this hurdle because of lack of knowledge, lack of planning or insufficient action?"