Some people do fine without using a buyer's agent, but a lot of people also get burned in scams like this which are becoming more and more common. 

It's going to be heavily scrutinized by people like you and myself for the obvious flaws that it has.However, he's giving realistic numbers, he's not out here saying these newbs are going to make $50k per deal, if he was, I'd be burning him at the stake myself.

We are looking to purchase a burned home that was previously a rental from one of our investor friends.

For instance, if the tenant accidentally sets a fire and burns the property down.  

Its the same thinking as any other kind of insurance, you insurance issues significant enough that you could not cope with them if they happen such as the house burning down. 

We had been inside the property several months before to meet with them and did not detect it then - they were burning incense (should have been a clue). 

Thanks @Cassidy Burns and I'd be happy to connect @Marco Spaziani Brunella

its a big pain in the butt to coordinate showings with tenants and you dont want to burn out or piss your tenants off by inconveniencing them with potential buyers who maybe just kicking tires..

We were of course never deceptive, and they were aware it would be a short-term rental.So now I am just praying the house doesn't burn down while my agent is trying to find another company. 

I took out a mortgage at ~7% and now simply burning cash.