Notwithstanding this section, a licensee may not pay or offer to pay a referral fee or finder's fee to an unlicensed individual that is not a party in the real estate transaction;(12) violates any provision of law relating to a buyer's freedom of choice in choosing an attorney, insurance agent, title insurance agent, or any other service provider to facilitate the buyer's real estate transaction;(13) fails to disclose in accordance with Section 40-57-139 the party or parties for whom the licensee will be acting as an agent in a real estate transaction;(14) receives compensation in a real estate transaction or directly resulting from a real estate transaction from more than one party except with the full knowledge and written consent of all parties;(15) represents more than one party in a real estate transaction without the full written knowledge and consent of all parties the licensee represents as provided in Section 40-57-137(M);(16) acts in the dual capacity of agent and undisclosed principal in a real estate transaction;(17) accepts deposit money which is to be delivered to the licensee's principal in a real estate transaction without informing the payor and having the payor acknowledge in writing who will hold the money received by the licensee;(18) issues a check in connection with his real estate business which is returned for insufficient funds or closed account;(19) fails to disclose in accordance with Section 40-57-137 any material facts concerning a real estate transaction;(20) violates any provision of this chapter or a regulation promulgated under this chapter;(21) violates a rule or order of the commission.(22) induces a party to break a contract of sale or lease, listing agreement, or buyer agency agreement;(23) engages in a practice or takes action inconsistent with the agency relationship that other real estate licensees have established with their clients;(24) fails upon probable cause of an investigator of the commission to make all records required to be maintained under this chapter available to the commission for inspection and copying by the commission or fails to appear upon probable cause for an interview with an investigator of the commission.

There are a LOT of federal and state laws and regulations governing notes.  

I have some options for you which I cannot talk about online, as what I do is heavily regulated.  

Due to SEC regulations, I can not post much here but I would be more than happy to give you some options that you can do without being an accredited investor.Please contact me via BP or my profile.

Does your state regulate them?

This would of course require 3 base things:  1) efficient utilities- a natural gas hookup in this case, 2) a well insulated house (sometimes challenging in the multi units in New England), and 3) implementation of a landlord thermostat to control the heat and regulate it to a range 65- 71. 

While our state has a lease/option regulation, that doesn't mean you can't do them successfully so that owner and tenant/buyer both can 'win'.

From my understanding, the only regulation is that a licensed person cannot pay a referral fee to someone who is unlicensed.

Anyway don't know if their are regulations for that.So how do people normally do it?

(This is true especially in subdivision development where the developer must undoubtedly meet requirements of the Illinois Plat Act and any other applicable local regulations before the land can be successfully subdivided, which specific requirements will not be addressed for purposes of this question).On the other hand, the developer could advertise what he does have for sale.