Paul Michael King is the C.E.O. and Broker of International Sales Team Realty in Sunny Isles Beach. He boasts a stunning office fully equipped with marble throughout, spectacular glass panels, and state-of-the-art computers and furniture.

Paul King: Well you know, real estate is a very serious profession. People trust us with their most valuable asset—their house. It is the single most important decision one will ever make. Our office must be not only fully equipped with the latest technology but also must appeal to clients who are about to make such an important decision. We’ve had clients buying everything from $200,000 homes to clients buying $10,000,000 commercial property and everyone is very impressed by our facility.

PK: Thank you. We do have a lot of business here so we use every bit of the 5,000 square feet. We have a residential division, a commercial division, a rental division, a property management division, and a mortgage division so our staff definitely utilizes the space.

PK: Unfortunately, some realtors are really hurting our business. Some realtors that can’t sell their clients home convince the owner to cut the price. Not only is that an illogical move; but now we have hundreds of realtors doing the same thing and obviously people lose faith in the market.

PK: What do major car companies do when they can’t move their product? They don’t cut prices; they give incentives. For example, instead of cutting your price from $550,000 to $500,000, give an incentive such as ‘Buyer gets first 6 months of free mortgage payments!’ Buyers will be attracted to incentives, not slashed prices. Slashed prices means ‘We Can’t Sell.'

PK: South Florida is amazing. I grew up in a tiny town in New Jersey where there were 3 restaurants and one town center. That’s it. We had to go 2 towns over just to watch a movie. I absolutely love it here and will never leave. I know a lot of people that feel the same way. If you feel the same way but money is the issue, there is a simple solution. Why do you want to sell that second home? Because you need the equity. There’s a financial strategy that banks give us when we want to take the equity out of our home. Refinance. With refinancing a bank lets you take the equity that your home has built up over time and put it in your pocket. Yes you will pay a few thousand dollars for closing costs, which comes out of your equity but if and when you sell your home you have to pay your realtor his commission as well as closing costs anyway so you’re not saving any money waiting for your house to sell.

PK: The truth is that not all mortgage brokers are well trained or well-educated. At our company we have a different philosophy than just quickly rolling the client into a loan program. We get to know about a client’s specific situation and tailor the loan program around him. For example, if a client needs to refinance and knows that in 3 years his child will be enrolling in college, we help him structure a program that will ensure that he will have the liquidity to be able to comfortably pay tuition in 3 years.

PK: Exactly. A mortgage can be an incredibly useful financial tool if used correctly. If used incorrectly, it could be disastrous to a person’s life. Before we make any decisions, we inform our clients of all the possible loan scenarios, compare several programs side-by-side and show the breakdown of each and how it will affect their future. The client makes the ultimate decision after he is well informed of the possibilities. Unlike most mortgage brokers, it doesn’t stop there. We keep the client informed of changes in rate activity every single month via email so that they are aware of the latest trends and changes.

PK: Interest rates are important, but they are not that important in the overall picture. The difference between a 6.5% loan and a 7% loan is negligible. The real difference is the type of program you choose. Saving a few dollars today could result in losing thousands in the future. I advise all my clients to make sure they have the right program first, and then we can discuss the rate.

PK: Renting is stupid. Period. You are throwing your money from your pocket to your landlord's wallet. I don’t care if interest rates are 25% and the market looks horrific, I still would not rent. Instead of throwing away $1,000 a month on rent, you can buy a place, get a mortgage and start paying down your mortgage $1,000 a month. That way you are building a bank in your own home. A few years later when the market turns around you can refinance and take your earned $50 K or $100 K out. Can you do that with rentals? Of course not. Invest in yourself, not your landlord.

PK: Right now it is a buyer’s market. 18 months ago it was a Seller’s market. A buyer can get a great deal today, much better than they could have 18 months ago. It is a great time for a first-time homebuyer to buy a house. Investors are honing in on opportunities as well and are catching steals off the market.

PK: The problem is that realtors have a really tough job. Realtors offer their knowledge and expertise to people for free. The only time they get paid is when their client closes on a transaction. Imagine going to a doctor and getting consultations for free where he is only paid if you go to surgery. Fair or not, the point is that realtors have it tough.

PK: Not necessarily. What I have done is given realtors a way to breath and be comfortable. My company gives realtors the best commission structure anywhere in Florida. It’s a bold statement but it’s true. My company offers all realtors a 90% split plus 5% for anyone they recruit into the company. To show how this works, let’s have Realtors Mary, John, and Bill. Mary joins our company. She gets a 90% split. She loves it here and recruits her friends John and Bill. John and Bill each get a 90% split and Mary gets an additional 5% for every deal that either realtor ever brings in. So when John has a closing, he gets 90% and Mary gets 5% just for recruiting him. This happens on every transaction, forever.

PK: Exactly. Instead of only counting on your own deals, you can recruit realtors and get paid when they work. This gives realtors a safety blanket. If you recruit a lot of realtors, you may not even have to work and just live off their deals. The point is, my company gives realtors an opportunity no other company can offer and our realtors are very happy. And when they are happy, they work hard and well. Everyone wins.

PK: Sure. The real estate market fluctuates; it goes up and down every few years. The Florida market is incredible desirable to Northerners and Europeans and will rebound in a major way. If you have the financial ability, get a good deal today and cash in when the market flips back around.

Page 1D – Thursday, January 11, 2007 INSIDE: REAL ESTATE ROUNDUP • BUSINESS EXTRA • FOOD