Its a common first step for a lawyer to send a letter threatening action knowing that it costs them virtually nothing but has a fair chance at getting a positive response.

Thank God our landlord put up with us and didn't threaten eviction at every turn.  

Not one of the wholesalers who threatened to sue ever followed through.

I would give them written notice of a violation and threaten to terminate if they don't straighten up and fly right.

And, if your next deal is your first, don't be afraid to let your seller know it's your first deal. they, many times will feel more comfortable with you simply because many people feel threatened by what they believe is a greedy investor looking to take someone for something.

RTP will threaten VISA and MASTERCARD, since there will be less of a reason to charge 3% processing fees from SMBs.Then there is also eChecks (two formats: RCC and Check21), funds CAN be made "available" same day in the receiving bank as long as the receiving end has good banking relationship + low disputes.

Other than this, the tenants have been good about paying ontime and reporting anything that needed attention, which has only been 2 things that were easy to address and not life threatening.

He sent threatening email demanding all of it back or he will take me to court for it plus "punitive damages."

@Troy Nonnemacher -  I was super surprised too when we got those calls and /or postcards returned in envelopes saying to take them off.My fav so far has been a crazy, older lady who called a dozen or so times a day (until I blocked her) threatening to call the police and her lawyer because I was the one harassing her.  :-)Best quote: “I ain’t sellin nothin to nobody!!”

I suspect you must have done a lot of expensive damage if you haven't even received the accounting for your deposit and you are already whining about the deductions and threatening to sue.