You shouldn't write contracts for property you cannot close on.Many wholesalers operate as an unlicensed  real estate agent, illegal in most all states.  

If he burns down your house and you knowlingly hire an unlicensed by the state electrician.

This unlicensed guy is charging closer to what the price should be ($500, 1-2 sheets of drywall).

I would not hire a handyman for painting, especially considering that in CA, any job over $500 requires a license.That said, I think an unlicensed handyman should get no more than $22/hr.

Wayne Brooks Regarding criminal charges, the check was written to me and the licensed contractor's Business but the unlicensed contractor was the one who cashed the check..that's where the thought of Fraud came from.

There are shops that will send unlicensed people pretending to be the appraiser so they can get more jobs done.

They will probably not really have any idea what you just said but 2 key things just happened, you disclosed your intentions which insulates you from the unlicensed RE possibility, and you may have earned some good will with the seller because to them that $500 will be a savings and that is to their benefit.

Fees and commissions are where unlicensed individuals are running into trouble.

Depending on your market, some of the best are unlicensed.  

The difference between operating as an unlicensed agent(which is illegal) or operating as principal(which is perfectly legal).