I suggest starting with an unlicensed group home.

I looked into the Real Estate fund as well, and because he was an UN-licensed contractor, I can not apply for it. 

It is absolutely illegal - and by the way, it's also illegal for a real estate licensee to pay an unlicensed individual referral/finder's fees too. 

@Jody MartinezYou can pull the permits typically for the GC but not for trade permits. but if you do the work are you going to disclose this when you sell that you hired unlicensed contractors and notify your insurance if same?

Funds of funds is basically unregistered/unlicensed broker-dealers or investment advisors acting as a sponsor in a GP role raising money to invest in other funds.As you can see by my tone I am not a big fan of them Its the next version of wholesaling at a syndication level.

@Michael Davis in fact hired an unlicensed designer and found out he couldn't get the drawing stamped since he/she wasn't a licensed architect.

Meanwhile most who obsess over entity formation fail to carry proper insurance, work with unlicensed and uninsured contractors, fail to execute contracts, can't explain the difference between being listed as additional insured and certificate holder or request to be listed as additional insured on vendors insurance policies etc.

Don’t assume they are valid, especially if your borrower uses unlicensed contractors, but understand what’s going on and what you might eventually contest or pay.Verify property taxes have been paid.

The irony is most investors who form LLC's do not operate them correctly, fail to obtain appropriate types or amounts of insurance coverage, fail to understand their coverage exclusions, take short cuts and don't obtain permits, use unlicensed and uninsured vendors,  fail to execute contracts with same vendors, don't understand the mechanism of additional insured status, indemnification etc. and are actually more prone to claims and conflict with their LLC than the individual who does not own real estate in an LLC but understands these tools I mentioned.

Scammers, gurus, noobs, unlicensed contractors, REA's that only sell retail and many more I can't remember.