cashflow notes: licensing and state regulations?

I’m interested in financial paper of all types: private mortgages, judicial judgments, structured settlements, and whatever contracts say legally that one is owed money by another and are obligated to pay in installments. I understand the basics on how to flip paper but I also hear that if you go after a paper deal in the wrong way you could easily end up in jail. I live in Kentucky and when I ask about local city and state laws regarding such people act as if they’ve never heard of paper-chasin’. My question is would I have to be licensed in each type of paper transaction and what type of mistakes land newbies in jail? I don’t wanna jump in the game and bust my head because I didn’t do my homework. Alot of people have looked at this forum without replying. Is there not anyone who can help me out here?

I recently found out that if you broker private mortgage notes to a firm as a dependant agent then you should have a securities license but if you act as the principal buying notes in your name, or at least having them assigned to you under contract, and then reselling them for profit then you don’t need to be licensed because you are an independant entity operating on your own and not in the interest of another. What usually gets newbies in trouble is acting as if the investor you’re selling the note to is loaning you money, calling yourself a broker when you’re really the principal, and not understanding all the paperwork involved in closing the deal.

I also found out that you don’t need to be licensed in Kentucky to buy and have judicial judgments assigned to you for pennies on the dollar and then proceed to enforce those judgments for yourself.

I hope this information has helped someone and if you feel I’ve made an error of some sort feel free to correct me.