@Mark Pedroza  when I did my CA RE Brokers CE  last year there is a tab right on the front page of the CA BRE website to turn in those you feel are acting as unlicensed agents.wholesaling as taught as you mention is totally illegal in most states.. but hey its got great appeal to those wanting to get started that think its the way to make money when they have limited resources. in other words they drink the wholesale guru cool aid..

@Dakota Mivshek From my recollection I think mostly I was dealing with the secretary of the company or some assistant and these people are all unlicensed, unprofessional, basically don't have any concept of how to structure contracts or even withdraw from a contract unfortunately.  

The reality is nothing like what the YouTube gurus teach. 99% of the real estate transactions out there have no need for, and no profit potential for an unlicensed “intermediary”.  

Not paying fees and commissions when to unlicensed salespeople where none is disclosed.

As for me, I use some of my rentals as unlicensed group homes.

Permit included in job (unless you're paying unlicensed people significantly less) in which case u pay someone to pull the permit.

Where there's smoke there's fire and upon additional diligence found his company didn't syndicate the deals they claimed and was operating what amounts to an unlicensed broker-dealer business.

@John Gannitto  too funny how gullable people are sometimes.. and thinking they can buy their way into the systemone can sign up with lending home and any other number of lenders and get paid.. realty shares etc etc.. now most of them want you to be licensed.. and by licensed I mean a REAL license NMLS and state licensed like I am.. but some in states that don't require will let you broker their money and they don't charge ... half the unlicensed folks you see on BP are doing just that fronting for one of these companies..

The cons are that wholesaling is in almost every circumstance, unlicensed selling of real estate and illegal in most cases. 

Unlicensed, that might be a different thing...