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

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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

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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

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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

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INTERNATIONAL REAL ESTATE TRANSACTIONS - ILLINOISValuable to

the Illinois Market place

Carrie

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INTERNATIONAL REAL ESTATE TRANSACTIONS - ILLINOIS

Carrie

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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

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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

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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

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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

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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

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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

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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

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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

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• 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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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DISCUSSIONQuestions?Thank you