@James WiseWhile what you say is true 85-95% of the time, there are some legit unlicensed wholesalers out there that are upfront in informing the seller about what they do.

Private money lenders are typically unlicensed, non professional lenders who still have to conform to usury laws but do not have to charge points and fees, appraisals, etc.

I believe they (Redfin) tried the same scheme here in Washington and got sued and LOST because in our license laws, one can not offer paying a FEE or CASH to any unlicensed or broker to entice buyers in any type of advertising.

Also it's a 4th degree crime doing work unlicensed. moral of the story what works in Nepa is not relevant to NJ, Minnesota or probably any other state. 

If you're looking for ways to skirt around the law, well... don't.OH COME ON MY UNLICENSED BROKERING CHEERLEADER FRIEND!

Unlicensed brokers SKIP these steps,don't care about the laws, and think they are somehow special and entitled to violate laws.

Regardless, it's always possible an 'unhappy' tenant could report you to the TN Real Estate Commission as being unlicensed, and then you are explaining your 1% fractional ownership.  

Unlicensed brokers (violating the law) using bandit signs (violating the law)....looks like a pattern to me:)

I send complaints to the state in lieu of cards to unlicensed brokers. 

@Jonathan Bren you must have a Broker license to "supervise" the real estate transactions and an Agent (or the Broker) actually performing the property management.In my state, a real estate or property management company can be owned by an unlicensed person but there must be a licensed Broker running the show and the unlicensed person can't be involved in anything that requires a license, which would include signing contracts, posting notices, negotiating a rental agreement, etc.