Is that correct?

There are several things that have to be correct for this to have a chance and they are all tied together.

However, as long I keep good records, I can still correctly report my income.Here is the link to the Flat Fee Program. https://vrgne.com/flat-fee/Here is the link to the Independent Contractor Agreement:https://thevirtualrealtygroup.com/VRG-ICA-OPPM.pdfIn summary, after paying the annual membership fee of $327 and $595 per transaction fee, the agent gets to keep 100% of the commission. 

Are you protected if there is a correction in the market?  

@Rick Pozos is correct.

If I understand correctly, this is state by state and isnt always allowed.

missing some info but if the Zillow value is correct there is also some opportunity for some  cash out too though

No right or wrong answer IF you buy correctly.

Many of the best longer term markets are in a correction now (TX/FL).There is no particular formula, but the closest proxy would be population growth and 10Yr historical price increase which aggregates many factors together.

Most investors opt for the skeleton versions that truly miss the mark and lead to convoluted amended and restated agreements that cost far more to correct than simply paying for the agreements to be drafted by a professional at the start.