1. Your self-study guide
to working with the world’s wealthy

2. A few facts you need to know…

3. Key facts about the world’s wealthy
1. There are more wealthy than ever
before and their wealth is growing!
The Number of households with financial assets in excess of $1
million (excluding property) --Source: Barclays Wealth Insights
Country 2006 2016 % Change
Canada 133,000 426,000 +220%
France 234,000 611,000 +161%
Germany 285,000 1,017,000 +257%
Italy 359,000 712,000 + 98%
Japan 1,008,000 3,286,000 +226%
UK 295,000 940,000 +219%
USA 3,941,000 8,878,000 +125%

4. Key facts about the world’s wealthy
2. Most of the wealthy made their own money
Area Primary wealth Secondary wealth
source source
WORLD Business Ownership Income
North America Income Business Ownership
Europe Business Ownership Inheritance
Latin America Business Ownership Income
Middle East Inheritance Income
Asia Business Ownership Income
More new money than old! Source: World Wealth Report,
Merrill Lynch/Capgemni

5. Key facts about the world’s wealthy
3. The wealthy hold residential real estate in
their investment portfolios – a second, third,
or fourth home may be a portfolio play as
much as a lifestyle decision.
– Of those who have a million dollars or more in
investable assets, 12% of their portfolios is in
residences , excluding the primary home

6. Key facts about the world’s wealthy
4. The wealthy are citizens of the world
• Globally, 25% of the wealthy have residences in
multiple countries
– 46% of wealthy Europeans have residences in
multiple countries
– 80% of wealthy Middle Easterners have residences
in multiple countries
• 19% of the US rich have children living abroad
Source: World Wealth Report, Merrill Lynch/Capgemini

7. Prime International Markets
Locations where international buyers make up 20% of all home purchases
and make 40% of the most expensive purchases. Ranked by price.
1. London 11. Moscow 21. Edinburg
2. Monaco 12. Venice 22. Manchester
3. New York 13. St. Petersburg 23. Cape Town
4. Hong Kong 14. Florence 24. Brussels
5. Tokyo 15. Geneva 25. Prague
6. Cannes 16. Madrid 26. Delhi
7. St. Tropez 17. Dublin 27. Beijing
8. Sydney 18. Milan 28. Shanghai
9. Paris 19. Birmingham 29. Kuala Lumpur
10. Rome 20. Mumbai 30. Sao Paulo
Source: ‘07 Annual Wealth Report, Citi/Knight Frank

8. Key facts about the world’s wealthy
5. It costs a lot to be wealthy!
– The “cost of living extremely well” has been rising faster
than the general cost of living. But for the affluent, wealth
is not just about what money can buy, it’s about enriching
one’s life
6. Time is the wealthy’s most valuable resource
– Having the time to do the things which enhance “quality
of life” is the ultimate luxury
– Delivering service which makes the process stress free and
saves time for the client is your key to delivering value!

9. Key facts about the world’s wealthy
7. The quest for privacy and exclusivity
continues to be strong motivators
– There is a retreat away from mass affluence
– They want customization plus a WOW! factor
– Safety concerns are also growing in importance
8. The wealthy are looking for experiences
– From homes with olive groves to adventure locales
– Exotic locations are in demand (Istanbul, Morocco…)
– Remember that stories sell !

10. Key facts about the world’s wealthy
9. There are three “most important influences”
on choice of property
1. Unique features of the residence
2. The Lifestyle the home represents
3. The long term investment potential

11. Key facts about the world’s wealthy
10. For some, an über home is the ultimate prize
– There’s a competition for the biggest yacht and the most
expensive house . Russian billionaires are major players in
the competition for trophy properties.
11. For others, concerns about the environment
are becoming part of the residential real estate
investment agenda
(Note: With second home locations,
there is some concern over future climate risk and congestion)

12. Key facts about the world’s wealthy
12. The search continues for tax havens
– This is most important for primary residences

13. Tips for getting started with
international buyers
• Do your homework – define your targets
– Research who’s coming to your area
• Identify foreign companies
• Check tourism records – Where visitors are from
may provide clues about where best prospects
originate
• Get to know the staff at your local economic
development board and Chamber of Commerce
• Network with travel agents

14. • Research the countries which you decide
to target
– Recognize that real estate business practices
are different
• Understand how they do business.
• Identify the likely sources of referral business
(agents, attorneys, financial advisors? )
– Read about the countries you are targeting
• Study the map. Learn a bit about the culture
and history
– Look at their homes and lifestyles

15. • Look for local connections
– Foreign chambers, embassies, or trade
missions in your area?
– How can you connect with the existing
immigrant / visitor community?

16. • Join and participate in the community of
international real estate professionals
– International Real Estate Federation
(FIABCI) www.Fiabci-USA.com
• An organization designed to link you to other
professionals in 65 countries
• Gain contacts, best practices and more!
• Start your networking by calling or emailing to
connect with other members

17. • Research and use the resources available
– NAR’s Certified International Property
Specialist designation (CIPS) offers:
• Training in dealing with the special challenges of
working with an international clientele
• Credibility around the world
• A network of other agents targeting the
international home buyer and seller

18. • Research and use the resources available
– International Consortium of Real Estate
Associations (ICREA)
• You have access through your NAR membership
• Realtor or equivalent associations in countries
around the world who joined together to:
– Help develop international business standards
– Create an international referral protocol
– Offer listings internationally on www.WorldProperties.com
and on the Global New Homes Resort Portal
– Provide training leading to “Transnational Referral
Certification”
Note: Your listing is FREE on World Properties if you have a Realtor.com
enhanced listing. Ask your Realtor.com account rep for details

19. • Research and use the resources available
– NAR offers tools at www.Realtor.org
• Power Tools for International Practitioners BLOG
• Global Perspectives quarterly newsletter
• Monthly International eReport
• Self-study PowerPoint Presentations on currency
conversions, foreign business practices and other
topics.

20. • Go on foreign Trade Missions
– Trade groups will usually help set up
appointments and facilitate travel for you
(often at low rates)
– Networking with other non-competing
professionals who are attending is very
valuable

21. • Go to International Real Estate Expos
(in the US and abroad)
– Walk the floor and work the show
– Try to talk to an experienced attendee in
advance to “learn the ropes”
– Handout a small, professional marketing
piece highlighting your market and you
– Smile, don’t be pushy, establish rapport
Find schedules of International Meetings and Conferences and lists
of Trade Missions on the CIPS section of the Realtor.org website

22. • Avoid being “the ugly American”
– Be polite and respectful, dress professionally,
be knowledgeable
• Network, network, network
– Personal connections are important
• Take it slowly
• Establish a relationship – they want to know you
before doing business with you
• Find a common connection
• Work to build trust
• Write thank you notes
• Stay in touch!

23. • How can I go abroad?
I don’t speak the language!
– You don’t need to…
• Learn some key phrases and use them
• The US embassy can help you find a translator
(You want one with good people skills and a real
estate vocabulary)
• This works with foreign language speakers who
come to the US, too. Find a translator you can
count on

24. • Put together an expert team
– Attorney, tax advisor, currency exchange
specialist, title company that will provide a
translator and have closing documents in
client’s language (Stewart Title has this
service) …
• Be an expert yourself
– Learn what is required of a foreign buyer
and seller
– Understand their special needs
– Recognize that they need extra care and
attention

25. More opportunities!
As you develop international prospects who
wish to buy and sell in the US, you’ll also
find opportunities to list or co-list
properties abroad