Many common practices involved in wholesaling only exist to get around the fact that the wholesaler is unlicensed and cannot legally be paid a commission.

Here in CA, the usury limit is 10% so any loan written above that by a private lender (unlicensed) would be usurious.

Unlicensed wholesaling is illegal in almost every state. 

The last one is an unlicensed guy who can do what a licensed guy can do and as nice, but his prices are cheaper (C team). 

The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction.

I don't know the exact law, especially in Florida, but I think in most places loan officers by license cannot give referral fees to realtors and realtors cannot provide fees to unlicensed people in general. 

I have also gotten screwed by unlicensed 'Contractors.'

Aaron,That is the catch....It will cost a little more to use insured contractors...I am one of them...but it seems like you are saving money by using unlicensed, uninsured handyman until something happens that puts your entire business in jeopordy.

There are a lot of unlicensed brokers who only offer DSCR because they do not have the ability to originate any other loan because they are not licensed.   

Unlicensed wholesaling is illegal in many states (I assume you don't have a real estate license).