Referral fees to unlicensed persons in most are illegal to receive. 

Hello is anyone in the Spring/Woodlands/Houston area looking for a hard working unlicensed assistant?

If you're just looking for someone to open doors and manage maintenance calls this arrange might work for someone unlicensed and 1099, but if you want someone to take over all the management activities it might be difficult to have them be 1099 and unlicensed. 

Thanks I know there are agent regulations against stuff like this and fear mongering etc.....An unlicensed person though, doubtful there's anything illegal about it.I see no reason why it should effect the seller.

@Charles Day, I've learned an unlicensed Real Estate Agent's Assistant can get MLS access. 

Labor was $200 per window from my unlicensed contractor.  

I buyer stops  then you through the unlicensed wholesaler who is trying to work on the fringe and low ball basically distressed or non owner occ properties and buy from burnt out landlords.. this goes on all the time. although right now one would need to be cautious in the wholesale gig with so many HML backing out and changing their fee structures..  

If this dude can't complete your projects....you definitely aren't collecting from him if you somehow won the case.Then you'll be out even more time and money...Forgot to add, you're most likely bet and efficient use of time is to file a complaint the license board for the state..and if you're using an unlicensed contractor well you really have no plausible recourse through legal channels.

I can't do anything because I am not part of the deal and he doesn't own the property and if he tries to market it then he's doing unlicensed real estate so how do these things work?

I feel they are better represented by a licensed realtor with full disclosure than a wholesaler, who may not be disclosing fully, letting people in and out of the house unlicensed, in addition to a plethora of other things. 2.)