., assets) that greatly exceed the coverage provided by the homeowner's policy, get umbrella coverage (excess liability coverage) in the amount of your "at-risk" assets. 

This is in excess of $6K/month in addition to the income used to get the first approval.

In business "build it and they will come" causes excessive expenses early on.

It also allows you to use any excess sale proceeds to improve the acquired replacement property as part of your 1031 Exchange transaction.The proceeds from the sale of your relinquished property that are used toward the acquisition of your replacement property as well as those proceeds that are paid or used for improvements to your replacement property will qualify for tax-deferred exchange treatment provided the transaction is structured properly as a Build-To-Suit Exchange.

All these fees seem excessive to me.  

That would go to the second and any other liens and then the excess would go to the former owner.

The big problem is banks want this excess inventory off their books as quickly as possible.

Scams can include excessive upfront fees, not showing up at closing table, quickly filing FC for the slightest default to try to take the property.Third, you don't "wholesale with trans funding".  

I don't know how the mortgages work over there but a 2 year loan you could get hit with a refi bomb where the rate climbs up and you do not have the excess in rental rates rising fast enough to cover the spread.

It might take you 5 years to save up for a 50 unit apartment, but if you can save for a duplex in 6 months, then it takes you 4 months to buy your next one, then 6 months to buy a 5 unit, and so on and so on until you can 1031 exchange and/or use the excess cash flow to buy that 50 unit (or whatever size you're looking at) which might very well be in 3 years instead.