Being an agent and a flipper

[Drew Leonard]

I have recently started to consider flipping as I'm already an investor and a licensed GC. I don't have a large funnel for off market deals so I was considering becoming a licensed agent such that I could go after deals quickly, keep sales commissions, etc. In discussing this with an agent I'm close with, he advised me that pursuing that type of model could pose a conflict of interest in some cases and/or become a liability for me, and perhaps is not worth the headache. In trying to run numbers on a few flips and make numbers work, it seems like a no brainer that being an agent would benefit me in this pursuit. Does anyone have experience with this such that they can share the pros and cons?

Thanks,

Drew

[Russell Brazil]

Flipping is a high risk, high liability act.

As an agent, your primary liability comes from selling your own properties. E&O insurance does not cover you when you are a principal

I flip. Im an agent. I always have another agent on my team or in my brokerage represent me when Im a principal to the transaction. Having that person in between allows me to never have contact with the other side, and thus removes the liability of saying X, or having the other side claim you said X.