Note Investor Licensing

[Chris Seveney]

I read many posts about note investors being required to be licensed in many states. I have posted on this as well as states such as GA, OH, KY etc require a license. What I found interesting is I did a search of every investor I have bought loans from (many larger funds including one who is over $150M) and some other investors and what I found was somewhat shocking - Not one, that is right not one of them has a license in any of these states.  

Which begs the question, are many small and think they can fly below the radar? What are the risks involved if caught without a license? 

Is the requirement for a license overblown and a scare tactic some use? Curious to get opinions.