Other trouble is when a wholesaler who is unlicensed, is assigning the contract, and collecting a fee for brining buyer and seller together which is brokering without a license in most states.

@Amos Stoltzfus@Russell BrazilHi Amos.... funny, I just Googled that a few hours ago as I just got my Broker's License.Here is a Video of a Broker who believes that having your License is much better than being an Unlicensed Wholesaler: Wholesaling While Licensed!

I decided to get rid of the unlicensed property manager who had been managing the property.

When a so called wholesaler, (who is usually an unlicensed, not aware of real estate practices, an individual who has taken a get rich seminar in wholesaling real estate, who is trying to accomplish a quick flip without the legal and proper assignment agreements or sufficient contract of sale) ----- the first thing I want to see is their contract of sale, how much they are in for (how much they are trying to make), I want to know if they are really under contract, how long is their contract, what is the settlement date, do they really have the right to assign and what their contingencies are, if any and if they have possession!

Here is what I warn people about before they deal with these types:BEFORE you deal with any unlicensed broker consider these ideas:1.

In PA, there is a rule against UNLICENSED third party managers - but a real PM in PA should be licensed.

On top of that, I received a letter that they hired an inhouse handyman for unlicensed minor repair work.

State does not get involved with EM or contracts.. they only go after license violations and other things like selling RE without a license or leasing homes without a license or being a unlicensed property manger etc etc

About wholesaling, if you are not a licensed real estate professional, you want to make sure it is actually 'legal' for unlicensed persons in the state you are contemplating. 

If you want a profitable RE J-O-B then you could also work as a RE agent, do everything an unlicensed wholesaler can do and more, do it with less legal grey area, and not risk any capital in terms of cash or HML like a flipper.Also, I would add that because flipping is so profitable, I flip every property I ever purchase, I just flip it to the rental market instead of the sales market and in so doing still get the nice forced appreciation equity bump of the flipper, just without all the transaction costs and short term taxes.