The global real estate investment market has grown rapidly over the last decade. The U.S. economy has been one of the most stable economies over the last 10 years, making it very attractive for foreign investors. These investors have dumped millions of dollars into the economy, rejuvenating old real estate investments, while also funding the construction of new projects. Brokerages, investors and property management firms looking to leverage the interest of foreign investors into the market need to understand some nuances about foreign investors to make transactions go easier and quicker. Here are some things that you and your team need to know about foeign investors from LCI Realty.
The Educational Curve Is Steep
Foreign investors often come here with a fairly good picture of the property they are looking for and what they want out of a costly investment in a different country. However, there are a lot of understanding gaps that will need to be bridged by the savvy firm, so understand that the educational curve will be very steep. Patience is the key in any deal with foreign investors, not only in the time that it takes to complete a deal legally, but also in the time that it takes for all involved parties to come to an understanding.
Form An Understanding Of Culture
One of the fastest ways that you can set foreign investors at ease is to develop a clear cultural understanding of their perspective, as they will likely be doing the same for you. Investors want to make sure that they’re venture will be a success and you want to make sure that they choose to invest internationally, rather than getting cold feet. Do more than basic research. Try to understand expected customs and traditions throughout the transaction, but go deeper than that. Perhaps it is our understanding that one investor group expects a culturally familiar meal, when all they really want is to try a corner hotdog stand bratwurst. Doing research and developing the understanding will help speed along any deals.
What’s Their Motivation
Within your pursuit of trying to connect with foreign investors, you should really try to understand their motivation for investing here. This should help you determine if your goals are aligned with theirs as well as understand even more what drives them culturally. For example, a great number of foreign investors have purchased commercial real estate within the United States as a path to legally immigrate here, while others have purchased property to support dependent students that are attending school in the United States. Others seek to escape financial or political instability in their home country by protecting their capital in foreign markets. If you get a good picture of their motivations, you will be able to offer foreign investors better advice and insight on the right investment for them.
Always Employ A Team Of Experts
Working with any foreign investors or investment teams is a complex process with lots of legal requirements that must be met. In order to maintain a good relationship while staying completely above legal waters, you need to employ a team of experts to accompany you on any continuing deal. You should have a smart and thorough team of attorneys, property managers and accountants at your side. LCI Realty wants to help you make the foreign deals that matter and help you navigate these waters with foreign clients so everyone closes the deal happy. Call the LCI Realty team at 480-565-8981.