Hiring unlicensed and uninsured contractors is considered  an exclusion under most property insurance policies, meaning you could be giving up that benefit as well.

California landlords can now enjoy streamlined maintenance and cost savings thanks to AB 2622.Signed into law in September 2024, AB 2622 raises the threshold for unlicensed contracting work from $500 to $1,000.

Unlicensed/illegal will be less but ya get what you pay for....

Quote from @Mathew Chacko: Quote from @Na Person:  I too was a little skeptical of sending a large cash payment to an unlicensed entity (1031 facilitators do not need a license). 

We can't risk a client sending an unlicensed or non-qualified contractor into the property as we share liability for that.  

It's also why we see customers get burned.Illegal or not, unlicensed contractors here in CA undermine the industry.

Quote from @Jay Hinrichs: Oregon finally passed legislation to reel in unlicensed wholesaling its in this months publication from the state RE agency.Highlights:Goes into effect  July 1 2025Requires:On line application to become a licensed wholesaler  ( RE agents exempt from this of course they already have licenses)Name of company and individuals who will be performing these services.Each one needs a full criminal background check and approval prior to receiving the license.300.00 annual fee for the license.Written Disclosures in Bold 10 point.These must be given to Buyer and Sellers prior to entering into a wholesale contract and signed for.Also RE brokers assisting wholesalers need to give these to potential buyers and sellers.

@Kenneth Jenkins you forgot to mention owners that expect a PMC to use contractors off Craigslist that are unlicensed, NOT insured and rarely have acceptable experience/skill - but, they quote the "best" price.These same owners will sue a PMC if using these types of contractors results in a tenant lawsuit.

Regardless if it was for tall grass, unlicensed vehicles, leaving the trash out too long, malicious animals, failure to keep snow removed from path to mailbox etc. 

Most wholesalers are not good at what they do, are unlicensed (which is illegal in most states), and lock up the property in a contract with zero risk to the wholesaler.