His ad said “unlicensed”.

He won't and if he does I would be very suspicious of whether he would disappear at the end of my job too.Don't hire unlicensed and uninsured contractors.  

We feel the risks of skipping permits and using uninsured and/or unlicensed labor aren't worth the "savings" over the long run. 

You are very likely unknowingly acting as an unlicensed real estate broker.

Unlicensed  investors don't  have that hard earned opportunity.Hope all goes very well for you!

If you are an Licensed Real Estate Agent - you are NOT allowed by TREC to "Share" a Commission with an UNLICENSED Person.

I'll also go so far as to assert that individuals (investors are notorious for this) who don't report and actively pursue those who break the law or ethical standards, whether regarding contractors, "professionals", unlicensed activity, or otherwise do everyone a disservice.

I once thought I was meeting an agent in a property and it was an unlicensed assistant sent to take interior photos.Instead, I try to convince the lender to use an appraiser and offer to pay the difference.

Many investors use unlicensed contractors for rehabs and are unknowingly contracting without a license in violation of A.R.S. § 32-1151 a class 1 misdemeanor (A.R.S. § 32-1164).There is a "handyman" exemption: Any person other than a licensed contractor engaging in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price, including labor, materials and all other items… is less than one thousand dollars. 

Actually what I can figure out is that you are basically running an unlicensed motel without a manager.