I original posted my issue on roadfly 1 series forum:
http://bimmer.roadfly.com/bmw/forums/e81/8932809-1.html
So here is my issue cut and paste from roadfly forum:
This morning I had to try pushing the start button like 4 times and had to insert and remove the key several times before the car finally started. Then later in the day it seems like when you push the start button it seems like it is having a hard time starting before the engine actually starts up. Anyone else encounter this problem? I think I will make an appointment to have it checked out soon. It seems to hesitate to start throughout the day today.
Drop it off at the dealership on a Saturday morning and they kept it for 7 days:
Dealership just called to let me know that they need to send the data to PUMA to find out how to go about my problem. They were able to replicate it. My service advisor believes it is a high pressure issue in the fuel pump. They are not sure if that will need replacing or some sort of programming depending on what PUMA has to say.
I just hope I don't have a lemon.
Finally PUMA told the dealership how to fix it:
Apparently this could happen to any 135, 335, and 535:
"High Pressure Pump" needed to be replaced as there is an updated one.
Dealer has it in stock and replaced it. They are keeping it until tomorrow just to make sure for quality assurance. Dealer assured me this will definitely resolve the starting issues for sure.