Risks of doing deals for yourself as an agent

[R S]

I'm a real estate investor and I'm looking into getting my agent license. A big reason for getting licensed is to act as agent for my own flips. I'd like to control the buying/selling process and also save the commission when buying and selling (applying my buyer's agent commission as a credit when buying). 

However, I've read that there are some risks when doing this. There was a discussion on Twitter where people mentioned that seller's have later sued buyers acting as their own agents. 

Rather than relying on Twitter, I thought I'd kick it over to the experts here. What are the risks and how can I mitigate them?

[Marian Huish]

@R S, I'm sure you're aware that as a Realtor, you'll be required to affiliate with a brokerage for at least 3 years, depending on your state, before you're able to be your own broker.  This is largely due to liability risks of not only being a new licensee but also because of a higher risk of doing your own deals. In fact, many brokerages don't even permit agents to represent themselves for this reason and, of course they will expect you to serve the public so that they can make $$ for providing you the trailing, tech, and oversight that will be necessary. And yes, there was a huge lawsuit recently but not for the reason you stated-  that lawsuit was related to sellers being required to pay a buyers agent co-op commission.  And, while most  Sellers do still pay that, it is now negotiated as part of the offer process rather than when the listing is taken. Many changes in the last 2 years related to this and have been made as to how agents conduct business and you will need to thoroughly understand this.  As licensees, Agents are also held to a higher standard which, in addition to the fees involved, may not be worth it.  I see many agents get their license just to save on commission but end up giving up their license.  My advice would be to find a good agent who will  work on your behalf while you focus on your flips.  If you do end up getting your license, find a brokerage that allows you to keep your commission on your personal deals.  exp Realty allows agents to transact up to 3 personal deals a year at no commission to the brokerage...  less a nominal Broker review & EEO fee as well as a 20% Mentor fee on your first 3 deals-  Hope this helps-  all the best