The general M/O by most unlicensed brokers is to broker using contracts which is ILLEGAL.There are only two ways to legally "wholesale"1. take ownership then advertise and resell2. be licensedThere are plenty of FRAUDS AND SCAMMERS that try to operate otherwise.

BEFORE you deal with any unlicensed broker consider these ideas:1.

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

This is what you get when you deal with unlicensed Brokers playing games trying to skirt laws and be a real estate broker without a license insurance or anything else that protects the public

Henri Corbusier It's doable, especially for that kind, yes 100/sf is tough when everyone else is charging 150/sf for addition, doable, not impossible, but tough. it needs to be in-house, unlicensed contractors, owner builder, and cheapy materials (im talking about clearance or phased out), 99 cent flooring/tile, etc.

Since I hold an active license in Texas, is this illegal for me to receive a referral fee from the investor (unlicensed) that is not through my broker (aka not splitting it)? 

Host doest have a license to operate a hotel -- do you really want to be in a car operated by an unlicensed driver? 

Its like the restaurant business... public health and safety is of concern... that is why you sometime have inspections, so they can know whats going on; are they violations that endangers the public etc... but if you are running an unlicensed restaurant out of your house, off the grid, no one knows whats going on.

Last week we had a big hail storm in my area and the adjuster came out today and said they are going to put a new roof on along with some new siding and gutters.My realtor said they are going to sign something to show they are going to replace it, but it more than likely will be done after the closing.My concern is that the seller is going put a lesser value roof on or hire an unlicensed roofer and try to pocket some of the insurance money.I have already asked for a copy of the insurance adjusters report and I plan to ask which roofer they plan on using and make sure they are licensed as well as ask for their write up of the work that is needed.Any advice on how I should proceed?

That said, your state may be one of several cracking down on unlicensed brokering and as such, a double close may be needed but that has nothing to do with your profit.