Doing so without a license is considered brokering without a license and can have stiff penalties including fines, jail time, and restitution.Wholesaling in of itself is NOT illegal just as driving a car is not illegal, however, many people operate a wholesale transaction illegally just as some operate a vehicle illegally (perhaps driving without a license or speeding).

A stiff warning from you- personally- could be what he needs to straighten up.

And after they stiff you, good luck collecting anything.After you have enough tenants, you just know how the story ends. 

In my home market in Orlando, competition is getting stiff not just with acquisition of new deals but with securing medium to long term financing for rental residential property held in an LLC.

The fines can be stiff if you get caught.  

I am just the working stiff at my multis  so I can say hopefully not too much but oh yeah.

We do have 5% down programs but the insurance on the mortgage is stiff

I've always been just the bad handyman and working stiff of a mgt co. 

If you don’t know the co-insurance requirement, you could face a stiff penalty at the time of a claim.

This is a residential property, it's just a duplex but I use the commercial loans to buy my properties due to the stiff lending requirements government backed loans have such as my bank accounts have X amount of dollars, having cash reserves for my current properties, and I can also get into the deals with 20%.