This week we learned yet another way to help agents today grow their business with developing new relationships through foreign investors. Our featured speaker was NVAR’s Chairman of the Board, Vinh Nguyen. He provided us with valuable information on how and where to establish these relationships as well as why we are a viable place for foreign investors to invest their resources. Here are a few highlights from our training:
Working with Foreign Investors
It provides you with an additional source of income by working with foreign investors – it is another spoke in your wheel of building relationships.
It helps to diversify your business and grow your database.
Work with immigrant population, it is a hedge against the main stream market.
Work with embassies, schools where a high number of foreign nationals attend and participate in local and national conventions.
Attend NAR conventions and attend global forums, learn their market and offer to speak at their conventions, build relationships through your knowledge and expertise of our market.
Many foreign developers are interested in our real estate market. They are looking to purchase bulk REOs, commercial, as well as buy houses for children studying here or abroad as they say in their country.
Many of these entrepreneurs have upwards of $50,000,000.00 to spend here in the US.
Develop referral channels for yourself to obtain business from different parts of the world.
Reasons they want to invest in the United States of America
Stability of our government
The value of the dollar is low coupled w/depreciation
The benefit to you is they do not know who to use, build trust through developing contacts.
80 countries have agreements with NAR to accept referrals and pay referrals to US agents.
There are great resources available to you through NAR. Go to Realtor.org, resource, international buyers to learn more.
48 % of international buyers pay cash for their properties.
New loan program through HSBC
30 % down, 5.25 % no points
Foreign investors, paper trail on 30% down payment is the only qualification that requires verification.
Finding channels to bring in money quickly and legally is a challenge to learn to overcome. Get to know the process through your banker.
Your goal is to sell Washington area. Make them aware of the Nevada, California and Florida foreclosure issues and why we are different. We have:
Stability of market
# 1 in the world now for foreign institutional investors
Low risk vs. overseas risk
Diversify their investments
Other places to obtain more information on how to work with foreign investors: Association of Foreign Investors in Real Estate – AFIRE.org – has a lot of research information.
Also, it is important to learn immigration, visa, and green card processes to be able to speak with clients about these issues.
Were you aware that you can obtain a green card if you invest $1,000,000.00 in a business? If you buy a business or establish a new one and maintain it or if you hire 10 Americans, you will have green card within 3 months and you can apply for permanent status in 2 years.
Another option is to invest $500,000.00 in a designated, depressed area and you can get green cards – regional EBS’s program.
A few final thoughts: One thing to keep in mind is to not worry about communicating with your new contacts. Most wealthy investors have translators or speak English. Look into attending conventions and other associations, such as: AERAA.org and NAHREP.org and lastly obtain a designation – CIPS – develop relations with those agents and work referrals with them.
You have heard it before and will hear it again, the more you learn the more you earn – go get educated and learn how to build your database through alternative means. Get it? Got it? Good!
Now, go sell something!