Savvy Broker working Deals 20%-30% Below Market
BrokerIPTV : We are talking with Kevin Mackessy today an investor, and Realtors with Keller Williams. Kevin thanks for being with us. Interesting business model you have, you built it primarily working with investors. Correct.
Kevin Mackessy : Yes .Thats true
BrokerIPTV : How is that marriage of investor and Realtors worked out for you?
Kevin Mackessy: It has been really good. I am one of the top producers in this office, and there is over almost 300 agents in this office. I am always in the top 5.
BrokerIPTV : I always liked to ask this. What is a good deal for investors these days?
Kevin Mackessy: Well, we try to get a minimum of 20% below market.
BrokerIPTV : Ok.
Kevin Mackessy: But we are saying 25% - 30% below market to distressed properties, pre-foreclosures, short sales, foreclosures and that sort of thing.
BrokerIPTV : I have heard some horror stores about agents working with short sales and foreclosures and so forth that the banks tying them up in the process, they are not getting paid. Have you heard problems like this as well?
Kevin Mackessy: Yeah , I have seen my share those and I have heard about worse, about the worst one I have ever had is we have got one going out, its been going on 4 months. But it is an investor, we have got a really good potential deal going, so if they are willing to just sit back and wait, its not like they are going to move in and live there, so it doesnt matter. I have never not been paid for any deal I have done with the bank. I tend to work with four or five agents that do a lot of real listings and bank on properties, pre-foreclosures, short sales. I do multiple deals with these agents, so I know they are going to go through.
BrokerIPTV : What about buying for rental? Is that still good in this market right now?
Kevin Mackessy : Any time that you can afford to buy and hold, it is always the best way to go. It is only the true way to build wealth too. Fixing and flipping as a cash generator that is all it is, you can do it as a business. You can generate a good income. You can generate cash. But it doesnt build wealth, the only way to build worth is to hold on the properties.
BrokerIPTV : Really. Are you seeing less and less people do fix and flips because at one point not too long ago was very high?
Kevin Mackessy: It is shaking out of the market and only the true I think pros and the serious amateurs tend to get in to it and it takes some nerve because there is no guarantee as you know time on market is stretching out pretty far in this current environment but what I tell my investors that want to fix and flip is that when we fix up these houses they raise to the top of the market. So lets say there is twenty houses out there in your price range and your area that you want a flip in. Well by the time you have done your rehab you are in the top two or three of those all those houses on the market and so even if the absorption rate is only a couple of houses a month in that neighborhood yours would probably be one of those.
BrokerIPTV : Kevin it is very interesting. Thank you so much for talking with us. I appreciate it.
Kevin Mackessy: Ok, my pleasure
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