Welcome

Introduction Page 1

Course Overview How the Global Economy Shapes Your Market Your Hometown Global Market Cultural Literacy for Business Serving the Global Market Networking Power Planning>Action>Results Page 2

Exam and Activities 30-question exam Activities Page 3 Open-book Multiple-choice Activities Group assignments Exercises Discussions Page 3

Earning the CIPS Designation Global Real Estate: Local Markets (All students) Global Real Estate: Transaction Tools (U.S. students) The Business of U.S. Real Estate (Non U.S. students) Three elective courses: Europe and International Real Estate Asia/Pacific and International Real Estate The Americas and International Real Estate At Home with Diversity (U.S. students Page 4

Earning the CIPS Designation One of the following courses can count as one elective option: CRS 200 – Business Planning and Marketing for the Residential Specialist CRS 204 – Creating Wealth through Residential Real Estate Investments CCIM - Residential Real Estate Financial Analysis One Real Estate Advanced Practices (REAP) module from the Council of Residential Specialists (CRS) (Non U.S. students) International real estate experience- 100 Points Page 4-5

Are You Global? How many “Yes” boxes did you check? 20 to 15: Bravo! 9 to 14: You have a head start 8 or fewer: You will really benefit from this course Page 6

Chapter 1 How the Global Economy Shapes Your Market Page 7

In This Chapter Page 8 Global economy, local real estate markets Global flow of capital and wealth Real estate as an investment Trends and indicators Monitor trends and indicators Synthesize the information into meaningful knowledge for business plans and decisions Page 8

Global Economy, Local Markets Global economic forces impact your business Real estate is a storehouse of wealth Which indicators and trends should you monitor? Designing a personal data plan Page 8

Viewpoints Page 10-11

A Shrinking World? Spread of capitalism New wealth seeks opportunities and safety in real estate Page 12

Capital Appreciation & Security Best Capital Appreciation Most Stable and Secure United States Brazil Spain Ireland United Kingdom Netherlands China India United States Germany United Kingdom Canada Australia Netherlands Page 13

Alliances NAFTA MERCOSUR APEC ASAEN GAFTA COMESA E.U. Page 15

Connectivity—Internet and Facebook Asia 48.2% 503 North America 9.3% 213 Europe 18% 309 Latin America/ Caribbean 10.2% 295 Africa 9.8% 124 Middle East 3.7% 49 Oceania/ Australia .8% 18 Percentage of World Internet Users Facebook Users (millions) Source: Internet World Stats, www.internetworldstats.com. Page 16

Round the Clock Financial Markets FTSE 100 London Hang Seng Hong Kong DAX Frankfurt CAC Paris Nikkei Tokyo Dow, S&P500, NASDAQ New York Page 17

Interdependence and Specialization Advantage: economic efficiencies and benefits Disadvantage: dependence on other countries Workers’ remittances = 3 x official government foreign aid Page 17-18

Ease of Travel Affordable airfares Convenient flights to hub cities and resorts Immigrants maintain homeland ties U.S. expatriate retirees Page 19

Twenty-first Century Workforce Global businesses and their workers enter new markets Remote workers choose to live and work apart from company offices Entrepreneurs start businesses from anywhere in the world Page 19

Capital—What Flows? Page 20 Currency Assets Capital goods Debt Credit Information Technology Innovation Page 20

Capital Flees, Capital Seeks Acceptable risk/return Favorable ROI Quality properties Affordable and available credit Orderly, transparent markets Capital Flees: Falling returns and values Ownership restrictions Movement restrictions Tight, expensive credit Page 20

Capital Flow Theories Bargain Rate Theory Loss Avoidance Theory Market Linkage Theory Page 21

Staying in the Know Select, monitor, compare key indicators The Economist Financial Times Wall Street Journal Government Web sites NAR Economists’ Outlook Page 22

U.S. Economic Indicators GDP Employment Consumer Price Index Labor Productivity Retail Sales Exchange Rates Interest Rates Flow of Funds Mortgage Rates Imports, Exports, and Trade Balance Direct Investment Abroad Foreign Direct Investment Page 23

Key Point Review Page 29

Chapter 2 Your Hometown Global Market Page 31

In This Chapter Page 32 Gateway cities and beyond Prospecting glocally Lawful target marketing Working with your REALTOR® association Identify local market opportunities and make connections Prospect for global business in your local market Take advantage of association resources Page 32

Do I Have to Leave Home? Global business happens in your hometown Local opportunities lead practitioners abroad Competitive market distinction locally Page 32

Page 33

Page 33

Top States for Foreign Buyers 16% 5% 21% 8% Page 34

The Top 5 China Canada India Mexico United Kingdom Page 34-35 16 % of buyers $28.6 billion sales $831,800 average 69 % cash deals Canada 14 % of buyers $11.2 billion sales $380,300 average 73 % cash deals India 8 % of buyers $7.9 billion sales $450,200 average 16 % cash deals Mexico 9 % of buyers $4.9 billion sales $274,800 average 46 % cash deals United Kingdom 4 % of buyers $3.8 billion sales $455,600 average 58 % cash deals Page 34-35

Working with Foreign Buyers Long-term perspective All cash or high-equity Acceptable, predictable returns Quality properties Commercial: Building class may depend on investment goals Desirable locations and familiar markets Detailed research Specialized advisors Page 37-39

Prospecting Glocally Awareness of the opportunity in your marketplace Knowledge of the market dynamics Outreach to potential clients, customers, and other real estate professionals Page 40

Awareness Start with macro-level assessment State economic development agency REALTOR® association resources What are other local businesses doing? Page 40

Research Who are the foreign buyers and sellers in your market? Where are they from? What language do they speak at home? What do they buy? Glocal market clues are all around Page 41

Find Your Niche Can’t be the real estate agent for the world Select your niche Language Affinity Travels Personal interest Your interest and participation must be AUTHENTIC Page 42

Be the “Go To” Person Share your expertise Demonstrate your professionalism Build your reputation as the source of the source Business will follow Page 44

Tap Association Resources State and local association global forums, councils, and committees Other global real estate professionals NAR Global NAR partners: Cooperating Associations Page 44-45

Brainstorm: Market Outreach Page 45

Key Point Review Page 48

Chapter 3 Cultural Literacy for Business Page 49

In This Chapter Page 50 Cross cultural business skills Generalizations and stereotypes High context/low context cultures Distinguish between expectations, generalizations, and stereotypes Demonstrate professionalism by serving clients and customers in culturally appropriate ways Page 50

Generalizations, Expectations, Stereotypes Generalizations allow revision of opinions and responses Stereotypes interfere with treating people as individuals Cultural learning can work both ways Adapt your outlook and behavior You don’t have to change who you are or your culture Page 50

High Context, Low Context Formality, face-saving, relationships, slow pace Asia/Pacific, Russia, Middle East, Central and South America, Southern Europe, Africa Informality, direct communication, results, fast pace, punctuality USA, Canada, Northern Europe, Australia, New Zealand, South Africa Page 51

Cross-Cultural Business Skills How can you: Be sure your behavior is appropriate? Project a positive attitude? Adjust to the need for high- or low-context interactions? Page 53

Do’s and Don’ts Save face Talk less, listen more Relationships first Formal, slow pace Punctuality Attorneys in the background Contract—end or beginning? Page 53

Do’s and Don’ts Respect for hierarchy Business card etiquette Family matters are private Practice with interpreters Double check software translations Observe nonverbal signals Common sense Page 54

Nonverbal Red Flags Re-adjusting distance Averting eye contact Scowling, frowning Inappropriate laughter Covering the face Silence, no questions Displaying impatience Page 55

Behaviors to Avoid Page 55 Hands in pockets or on hips Intense, prolonged eye contact Crossing legs Showing the soles of feet or shoes Pointing or touching with the foot Fleeing or invading personal space Initiating any physical contact Showing impatience Pointing or beckoning with the fingers Hand gestures Page 55

Negotiations and Decision Making Win-win or win-lose? Consensus, committee, or hierarchy? Accept and adapt to the client’s practices Follow up in writing Page 56

Gender Issues Cultures that strictly separate sexes may have difficulty adjusting Be deferential to women even if their own culture is less so Include the spouse or other colleagues in invitations to male clients or colleagues Page 56

Religious Traditions Fundamental to cultural identity, norms, traditions Learn about others’ beliefs and traditions You don’t have to change your own beliefs and traditions Page 57

Active Listening Facilitates cross-cultural communication Ask open-ended questions Invite listeners to explain understanding The conversation IS the message Page 57

Active Listening Pay attention Withhold judgment Reflect Ask questions to clarify Summarize or paraphrase Share information Page 58

Key Point Review Page 64

Chapter 4 Serving the Global Market Page 65

Slide: In This Chapter Page 66 Adapting your core real estate skills Presenting your value proposition Using Internet tools to build relationships and prospect Qualifying and serving foreign clients and customers Adapt your core real estate skills and knowledge base to serve the global market Gain confidence to serve an international clientele Develop a standardized process for qualifying clients and customers Page 66

Adapting Your Skills Regulatory knowledge Market and product knowledge Financing Networking Page 68

Adapting Your Skills Presentation skills Communication and Listening Investment knowledge Patience Page 69

Adapting Your Skills Fiduciary duties Customer service Client loyalty Marketing Technology use Page 70

Adapting Your Skills Tax issues Value proposition Negotiations and decisions Property presentations Page 71

Qualifying Foreign Prospects Establish and define the relationship Use questioning skills May be an ongoing learning process Use a checklist Page 72

Qualifying Unsolicited Parties Make initial assessment of intentions Maintain sensitivity to establishing a relationship Probing questions may seem too intrusive and assertive Same misgivings as domestic clients plus uncertainty of buying property in foreign country Page 73

Real Estate Practices Around the World Cooperation Involvement of attorneys Role of notary Licensing standards Negotiable commissions Property records Title insurance Document authenticity Page 75

Realtor.com/ international Page 76

Real Estate Practices Around the World Attorneys Notaries Real estate licensing Commissions Property records Title insurances Document authenticity Page 77-81

Does It Have to Be in Writing? Clients may believe that exclusive agreements limit market access Demonstrate advantages of representation How much you will do without a signed listing or representation agreement? Page 82

Contracts—End or Beginning? Basis for relationship and negotiating the details? View fill-in-the-blank boilerplate contract as unbinding? Sign to avoid losing face? Candid pre-contract communication Provide translated versions of contracts and agreements Page 82

Are We Speaking the Same Language? Page 83

Key Point Review Page 84

Chapter 5 Networking Power Page 85

In This Chapter Page 86 Networking as a strategy Starting a business roundtable and building your team Integrating social media Referral best practices Will local business lead you abroad? Purposeful travel Derive maximum professional benefit from business and personal foreign travels Build up a network of contacts that can lead to referral business Page 86

Networking as a Business Strategy Time Effort Money Focus Plan Planned networking transforms data into market knowledge, actions steps, contacts, and transactions. Page 86-87

Finding and Making Contacts Local market trends Foreign buyers moving in or investing? Local buyers interested in another country? What types of investments are they making? Your own interests? Personal travels? Family connections? Page 88

Business Roundtable Local business owners want to know about market trends and reach the same clientele First source for advice Exchange leads and build each other’s businesses Page 88

Networking Information System Market information Prospects and clients Reminders Maps Spheres of influence News References Trends Page 90

Social Media Page 91-93 Connect to your spheres’ spheres Get acquainted before contact Important for high context cultures Demonstrate knowledge, professionalism, and value proposition Authenticity is key! How do you use social media? Page 91-93

Referral Networks NAR Global Network of Cooperating Associations CIPS Network Franchise networks Page 98-99

Best Practices Making a Referral Page 99-101

Best Practices Receiving a Referral Page 102

Expatriate Programs Page 103-105 Panama: Pensionado and Special Specific Countries Visa Programs Mexico Belize: Retire in Belize Program India: Non Resident Indian Incentives Malaysia: Malaysia My Second Home Philippines: Special Resident Retiree’s Visa (SRRV) Program Page 103-105

Purposeful Travel Plan your vacation and work in business? - OR- Business first and work in your vacation? Page 106

Trade Shows and Expos Page 106-107 Networking Comparison shopping Sales contacts Education Competition—monitor New ideas and products What is your business focus? Prepare a personal script Professional behavior and demeanor Page 106-107

Trade Missions Study tour Develop relationships and opportunities U.S. groups—build referral networks Non-U.S. groups —facilitate investment Common ground—identifying local partners Page 109

Key Point Review Page 112

Chapter 6 Planning>Action> Results Page 113

In This Chapter Building global business confidence through planning Adapting core business planning skills Tapping REALTOR® association resources and tools Quick-start planning and action Measuring results Formulate a plan and set goals in achievable increments Allocate resources Implement an action plan for integrating global business into your real estate practice Page 114

Build Business Confidence Help your sales team coalesce around shared goals Achieve consensus on allocation of resources Sharpen your focus Page 114

Identify a Market Niche List your interests and affinities Involvement must be sincere Don’t try to fake it Be flexible—go where the market takes you Page 115

Setting Goals Short-term achievements: Build enthusiasm Maintain momentum and motivation Experience and involvement sharpen focus Talk to your broker Page 115

REALTOR® Association Resources State-by-State International Business Reports Economists’ Outlook NAR Profile of International Home Buying Activity Local Market Assessment Case Studies Global Perspectives in Real Estate Newsletter REALTORS® Annual Conference and Expo Global Alliances, Cooperating Associations Global Business Councils The Global View Blog CIPS Network www.Realtor.org/global Page 116-117

Promoting a Property Globally Market profile Property profile Promotion plan Resources Page 117

Business Planning—Quick Start Size up the situation T Tactics R Resources A Actions P Progress reports Page 119

Measuring Results Start and stop dates? Who is responsible? What does success look like? Resources needed? Monitor progress monthly, quarterly Page 120

What Will You Do Next? Tomorrow? In the next 7 days? One year from now, what will your global real estate practice look like? How will you measure success? Page 121

Key Point Review Page 122

Thank You