@Robert Herrera I would like to caution folks reading this thread that, if not done properly, doing what you propose re: the property management company can turn into a complaint with DORA for unlicensed real estate brokering.

People who use arbitrage just have a job managing other people's properties.Savy investors are not going to turn their properties over to unlicensed, uninsured individuals.

That said, even 5 years ago, $20 an hour seems cheap by CA standards for a real PM with experience; Unlicensed or not.This is a good question though and one that has been asked several times here on BP.

The exception is if a licensed person pays an unlicensed person.

@Matt R.Recently had an unlicensed screen guy tell me he got hurt on a job in Naples.

I have never heard of an un-licensed wholesaler getting paid when a buyer gets bank financing.- This hits the heart of many BP threads on wholesaling vs licensed.- you are acting as an agent if you try to bring in a financed buyer, is the effect.- Banks hate fraud, so they won't finance unless the "representative" at the table is licensed.  

I would normally then get the other $4500...but 25% of that goes to the referring agent so they get $1125 (Of which they split that with their brokerage) and I the agent get $3375 before taxes.You are correct though that I can not pay a referral fee to an unlicensed person.

Stop the unlicensed brokerage activity that you are currently doing.Go to class and get licensed.

 - Litchfield Park, suburb of Phoenix, AZ- The sale is due to take place in September- Home value guestimate ~$170k- No equity, they are a little under-water and owe 180-190- They are currently paying on another plot of land and trying to get a house finished after it being botched by an unlicensed contractor.  

Seriously, essentially a wholesaler is acting as an unlicensed realtor.