Upload
carrie-bey-little
View
117
Download
0
Embed Size (px)
Citation preview
IAR & GLOBAL EXPANSION2015 Leadership Class Project
Jayme Ahlden, Debbie Bell, Carrie Bey-Little, Bill Caton, Richard Davis, Michael Gross, Maurice Hampton, Paul Martis, Nykea Pippion-McGriff, Angela Stodden, Terry Umecker
2
AGENDA• Identifying the Problem• International Real Estate in Illinois• Education/Outreach/Technology• Commercial Global Business Network• ROI – CIPS & CCIM• Solution• Implementation• Discussion
Nykea
IDENTIFYING THE PROBLEM• Lack of Awareness of
foreign markets in the State of Illinois
Nykea
4
IDENTIFYING VALUE FOR OUR TARGET AUDIENCE
• globalization is the future of our industry - IAR surveyed • REALTOR MEMBERS• FINANCE COMMITTEE & • BOARD OF DIRECTORS
• 2010 – 2014 foreign born persons made up 13.9% of the Illinois population
• 1 in 7 people in Illinois
• to take their pulse on what value they find in IAR having a continuation and expansion of global presence, how being connected globally might benefit IAR, IAR members, and their individual communities.
Jayme
THE VALUE FROM A BOD • It is an important area for NAR (National Association of
REALTORS®) and our participation will be noticed. • Access to NAR leadership will be granted as it will help
move our people forward in the organization with good appointments.
• Hopefully this enables us opportunity to showcase a national candidate.
Jayme
THE VALUE FROM A BOD • Illinois is a global center that would benefit from increased
marketing of our assets on the global stage. • This increased marketing would help our members with
business and help Illinois as a whole in the arena of economic development.
• Elected leaders would be more engaged due to the synergy of those efforts.
• One Mipim participant has already commented on the need to have a better contact with the consular corps in Chicago.
Jayme
THE VALUE FROM A BOD • IAR participation with AAREA and NAHREP will help us with
increasing ethnic populations in Illinois to do business and to help in advocacy efforts.
• In addition to the transaction perspective, attracting capital for developments will be a win/win scenario for Illinois REALTORS®.
• The possibility of trade missions for our members will be highly educational and will provide opportunities to expand upon their marketing efforts to the global arena. • Florida and • California have flourished in developing that side of the business.
Jayme
THE VALUE FROM A BOD • Global initiatives are attractive to both residential and
commercial practitioners which helps with broader member engagement.
• Global is the future -- we need to be prepared!
Jayme
9
IAR SURVEY RESULTSUnfortunately, when surveying REALTORS® from across the state, the responses were much less positive and pro-global. A couple of the concerns included:• The belief that money should be kept locally.• The belief that money was being used to finance foreign vacations of a
certain few IAR members.• Surveyed REALTORS® admitted not having enough education regarding
global initiatives to discern whether or not programs would be beneficial.
• The negative feedback received regarding global initiatives from certain REALTORS® affirms the need for education regarding global initiatives.
Jayme
10
INTERNATIONAL REAL ESTATE TRANSACTIONS - ILLINOISValuable to
the Illinois Market place
Carrie
11
INTERNATIONAL REAL ESTATE TRANSACTIONS - ILLINOIS
Carrie
12
EDUCATIONCIPS• Certified International Real Estate
Specialist-designation program and business network-
• NAR Global Association Network-NAR Partners with 80 Associations in 60 countries
• Global Perspectives in Real Estate-a bi-monthly newsletter
• International Research Reports-learn about the global impact in your market
• The Global View which is updated weekly
CCIM• The
education component of earning your CCIM designation is comprised of a four-course curriculum, an online ethics course, negotiation training, and elective courses from the Ward Center for Real Estate Studies. Your membership type will determine how many education requirements you'll need to fulfill.
Mike
13
EDUCATION
• More income for the member and agents are able to sustain their dues.
• Awareness in the local/global economy
• Volunteering for the committees in our boards will give you a different perspective
• on the global expansion.• IAR must stay involved in the
global market to keep our markets going and expanding.
Illinois
Mike
14
EDUCATION
• Targeting the global buyer who is looking for a ROI since they are able to buy more over here than in their own countries
• The foreign market will be the new market opening for agents willing to get training and
• further their expertise in the foreign market.
• Referrals can come from either buyer’s and/or seller’s agents.Illinois
Mike
15
CURRENT IAR GLOBAL PROGRAMS• Global Business Council group, that is a working group made up
of REALTOR members across the state, both commercial and residential that are involved in some aspect of global business.
• 3 NAR Global President's Liaisons, Jana Herdova, Czech Republic, Ahmad Badat, UAE, Delmy Economos, Honduras
• Current opportunity for REALTORS to attend the international real estate conference, MIPIM, in France this coming March 2016
Carrie
16
CURRENT IAR GLOBAL PROGRAMS• In the past, IAR has done a series of multicultural forums and
that covered Latin America/Mexico, Asia, Europe/Russia, Africa/Caribbean, A five year series.
• IAR has a partnership agreement with AMPI, we send them market stats and other helpful info that they can share with their members in Mexico, it is in an effort to help them grow their organization there while promoting Illinois to the members there. www.ampi.org
• Sharon Garrol, CIPS, with IAR works with the DCEO (Department of Commerce) office of trade and international business on some of the IAR projects.
Carrie
17
NEW IAR GLOBAL PROGRAM• Consulate Liaison program – • A team of REALTOR members that are establishing
partnerships with the Consulate General's offices for certain countries.
• Target Launch in March of 2016
Carrie
ILLINOIS EVENTSAREAA
Chicago Installation - February 11th, 2016 6pm to 9pmStan Mansion 2408 N. Kedzie, Chicago IL
NAHREP
2nd Annual Wealth Management & Installation - February 17th, 2016 Marcello’s lincoln ParkChicago September 2016
NAREB
2016 Mid-Winter Regional (MID-WEST) Chicago, ILApril 21, 2016 — April 23, 2016. All Day
MIPIM
March 15-18th, 2016 in Cannes, France
Nykea
19
TECH TIPS – INTERNATIONAL BUYER• Paperless tools need to be incorporated into your business.• Not all countries use e-signatures. However, there are many
that accept e-signatures. Understand the how to use e-signature tools in other countries
• Live Streaming of listing - License Law must be considered before streaming “LIVE”
• Carrie’s take away from the NAR session on the “International Buyer” 2015
Carrie
20
TECH TIPS – INTERNATIONAL BUYER• Virtual photography is important when marketing listings to the
international buyer• Face to Face is essential use a Virtual Office meeting product -
gotomeeting, skype, send video emails and consider Wechat.• Stunning photography is a must
Carrie
21
• Global investment volume rose 17% year-over-year during the first half of 2015, totaling $420.3 billion.
• The Americas recorded the highest volume and rate of growth--$218.3 billion, representing a 36% growth from prior year.
-NAR, Commercial Connections, Winter 2015
COMMERCIAL GLOBAL BUSINESS
22
COMMERCIAL GLOBAL BUSINESS
CHICAGO $9.7 B
SAN FRAN $15.8 B NYC $36.8 B
LA $16.9 B DC $9.2 B
DALLAS $7.0 B MIAMI $7.1 B
COMMERCIAL MARKETS IN THE U.S. ACCOUNTED FOR 7 OUT OF THE TOP 10 INVESTMENT DESTINATIONS.
Bill
23
COMMERCIAL GLOBAL BUSINESSChicago ranks as the top city in North America for number of investment projects. -Chicago is the only global American city in the top 20 in the world. • 86% of REALTORS® focused on sales below $2.5 million. • At the higher end of the market, international investors have
accounted for 8-10% of the US commercial sales in the past 4 yrs.
• Investors are turning to Chicago seeking a higher rate of return than they could get in coastal cities…like NY and San Francisco. First-year rate in Chicago—6% through 2015 vs. Manhattan—4.4% or San Francisco—4.7%.Bill
24
COMMERCIAL GLOBAL BUSINESSWE NEED TO WAKE UP THE MAJORITY OF OUR
COMMERCIAL BROKERS!• COMMERCIAL C.I.P.S. SUMMER INSTITUTUTE PLAN (co-
sponsored by IAR and NICAR’s CGBN…Commercial Global Business Network )• Goal: To conduct a commercially-based institute taught by a
CCIM instructor in 2016 for 30-50 state, national, and international commercial brokers.
• Benefits: Attendees will gain the knowledge & tools for working with foreign investors; they’ll have multiple networking experiences; they’ll have a better understanding of the benefits and programs of NICAR, CGBN, IAR, and NAR; and skills gained will generate more business for commercial attendees.
Bill
25
COMMERCIAL GLOBAL BUSINESS• NICAR and CGBN will have successfully completed an event
significant for its members & other commercial Brokers.
Approximate Costs: $20,000Instructor costs and NAR fees: $8,000Classroom and Meal Costs: $12,000
Proposed Income: Registration ($695 x 30 attendees): $20,850IAR commercial grant: $7600Applying for NAR diversity grant: $5,000 Potential Sponsorships: ???Bill
26
Return on Investments:
• Commercial Brokers will gain skills & knowledge to take advantage of the foreign investment market.
• Commercial Brokers can develop a new income stream.• One foreign investment deal in 2016 at the $5 million level
could result in an additional $100,000 of income. If only 5 of the C.I.P.S. attendees do such a deal, that would be a total of
$500,000!...10 deals in 2017 = $1,000,000!• More foreign investment dollars will come into Illinois.• A stronger Illinois CGBN networking group will be
formed.• Commercial Brokers may become REALTORS.• Commercial REALTORS® may become more politically-
astute and contribute to RPAC.Bill
CIPS ROI FOR THE REALTOR®Benefits of CIPS include: • Currency and exchange rate
issues• Cross-cultural relationships• Regional market conditions• Investment performance• Tax issues• Once completed you will be in a
tight-knit network of over 2,800 international property professionals around the world
Maurice
CCIM ROI FOR THE REALTOR®
• Minimize risk• Enhance credibility• Make informed decisions• Close more deals
Maurice
29
SOLUTION How will it benefit the agents of Illinois• More income for the member and agents are able to sustain
their dues.• Awareness in the local/global economy• Volunteering for the committees in our boards will give you a
different perspective on the global expansion.• IAR must stay involved in the global market to keep our
markets going and expanding.
Nykea
30
SOLUTION • Targeting the global buyer who is looking for a ROI since they
are able to buy more in Illinois than in their own countries• The foreign market will be the new market opening for agents
willing to get training and • further their expertise in the foreign market.• Referrals can come from either buyer’s and/or seller’s agents.• Foreign buyers are already investing in our state. Once they
become a citizen they rate of home ownership increases by 18.4%
Nykea
31
SOLUTION • The commercial broker is seeing the ROI with the potential of a
50% increase in income from 2016 to 2017 • The non-native resident is investing in Illinois and if they
become a citizen the investment in home ownership increases by 18.4%
• Global/International business is extremely important to the State of Illinois
Nykea
32
IMPLEMENTATION• Dr. Geoffrey Hewings, lead economist with IAR, suggested
conducting further research to determine the correlation between the volume of international people migrating to Illinois from outside countries and the relationship to the housing demand.
Jayme
33
IMPLEMENTATION• According to U.S. News and World Report, Illinois houses two of
the fifteen national universities with the highest percentage of international students.
• Due to the large international student population, Dr. Hewings suggested documenting the correlation between the economic growths of communities in the education sector with the ratio of international students as a method of determining return on investment.
Jayme
34
Inevitably some of the IAR members at large may struggle to define the value of a global initiatives
expansion. This just relays the importance of education. Establishing global initiatives will be a long term project.
As an IAR Board of Director said, “While skeptics may search for immediate return on investment, the
expansion can not be measured in immediate returns. Relationships need to be built and established.”
Jayme
35
DISCUSSIONQuestions?Thank you