And I have not even addressed the issues of unlicensed sale of securities (yes, participations in real estate investments are securities subject to both Federal and state security regulations). 

HUD only oversees FHA mortgages far as I know. so if an unlicensed lender wants to trick a borrower into seeing the loan as legit by using Fannie, Freddie or FHA approved mortgage notes and filling in blanks, is that legit use of those documents?

Using unlicensed, uninsured, "contractors" can easily result in you being liable for medical bills, as well as potential OSHA fines.Then there are the costs of improper or poor quality repairs, if the PM is substandard, their vendors may be also.

. :) I list out that they can't do these things:- Parking on grass- Store campers, boats, aircraft, unlicensed/insured cars, - working on cars, - using any part of the property for business purposes (including childcare, baking)They cannot have:  fish tanks, water beds, fire pits, trampolinesI don't think any of that is too crazy though. :)

That was main reason I asked about repair cost since I will have to calculate that into the numbers since I was planning on assigning the contract to an actual fix n flip buyer.So basically, you are saying its illegal for an unlicensed newbie like myself to try contract wholesaling?  

However, until someone reports each and every individual there will always be more unlicensed people investing in mobile homes, cars, and likely other types of properties.

I'm located in Arizona, and my rule of thumb is if the cost is $1000 or less and the project has a low risk, i'm okay hiring an unlicensed contractor/handyman. 

If there is no workmans comp your homeowners policy picks up the tab.Many individual/sole self employed are not required to carry workmans comp and their is a waiver they can use.If they do not have a WC policy it DOES NOT mean they are unlicensed.

But even if working under a brokers license, an unlicensed person can not do licensed agent work (such as showing a property for rent or collecting rents)?

You can also get access to the MLS by becoming an Unlicensed assistant.Hope that helps!