So, if they are not licensed, and do not own the properties, they are UNLICENSED BROKERS.

For example take a look at some of the large fines levied for unlicensed activity in Ohio.

So the cost of unlicensed contractors for anything from painting to plumbing is much cheaper than licensed and bonded contractors.

Plus, it’s obviously less risky to loan to someone with experience, but that’s a different issue.Even though not a real estate meeting goes by that I’m handed business cards from completely unlicensed individuals with the words “Hard Money Lender” on them, the CFLL will legally allow you to call yourself a “Lender” and advertise, but that’s about it as far as your needs are concerned.

These can often be old and rusty and a source for slow leaks that will destroy all kinds of things.It's always possible that the owner had some unlicensed contractor "fix" plumbing or electrical that you'll be stuck correcting down the road and a lot of times it's hard to find these things (even with a thorough inspection).Are you paying somebody to inspect the property or are you doing it yourself?

What brought this to my awareness was a local news story quite some time ago about a woman who hired an unlicensed, undocumented worker to do some repairs to her roof.

True birddogs are people like your mailman, your kids bus driver, your elderly aunt Ethel who tells you about all her friends who talked about people that died at bridge club this month.You give these people a small token to thank them for pointing you in the right direction (which you then did the work) and to encourage them to do it again.If the person is actively marketing for deals and interacting with the sellers (if they are not already a personal acquaintance) then they should be getting it under contract and wholesaling it.A lot of people will say they are birddogs but are really in some nebulous area inbetween these 2 situations where they are trying to be either unlicensed agents or lazy wholesalers.The former will maybe find a warm lead then negotiate on your behalf with the seller or the sellers behalf with you and then have you directly sign all the contracts and get a fee or percentage of the price for their efforts.

So some unlicensed contractors will threaten and file a lis pendens, knowing full well they will never get a judgment.

^ well said. if a handman paid whether project or hourly/salaried, i'd still be worried about if he gets hurt and if the homeowner policy even with umbrella, would actually cover it.it would be easy for insurance claims underwriting to look at the scope of work and say 'you didnt use a licensed contractor but were required to by law so we're not covering your unlicensed worker whether employee or independent 'contractor' since he's not licensed to do what he was doing in your house!'

Are you actively managing the management company and were you the one who decided to use an unlicensed/uninsured electrician instead of a licensed/qualified electrician?