Any listing agent looking at a preapproval letter from Wells Fargo that's attached to a purchase contract specifying 30 day close of escrow is going to laugh, and rightfully so.But, anyways, since the false dichotomy here is between a useless big bank, and commercial financing (why isn't "use a reputable local residential non-big-bank mortgage lender" an option here, again?)

The HELOC was great when interest rates were low - now the advantage has shifted to the life insurance, but I will continue to use both.There is certainly merit to the argument about commission sales - but to generalize and say ALL commissioned life insurance agents are pushing high commissions over quality advice is just false.

Then I read the Gary Keller book "The Millionaire Real Estate Investor" which told me that my next level of investing is to receive a million a year from my investments.Processing all this information, I realized that it would take an absurdly expensive portfolio of San Diego properties to cash flow $1M/yr.  

The why is a little more complicated- lack of education, lack of integrity, lack of experience, false guru promises, etc. 

Replacing actual info with false.

If they haven't paid for Feb, its now March and well beyond your absurd 20 day limit, so you can issue a 3 Day Pay or Quit for Feb. 

His approach to picking deals is just absurd, in my opinion, but I think this is a must-watch before any investor gets in bed with him:  https://www.youtube.com/watch?

And while it is true that the seller's agent owes you some level of duty (e.g. taking some reasonable steps to ensure that the seller didn't disclose false information on the seller's disclosure), I don't see any obvious wrongdoing from the short facts you gave.If you want to pursue this, I again recommend that you sit down and talk to a lawyer.

Either they tax returns were completely false or the business was discontinued, after moving. 

I started looking for houses (seriously) in the Bronx about 2 months ago, but always keep an eye on the market.  I am looking for a 3 family, and inventory is insanely low.  My realtor and mortgage guy are suggesting ...