The Rise of the Super Rich

There hasn't been much of a slowdown in our 10+ million market out here. 

I agree with Sandra that those with a lot of money don't seem to be experiencing much pain.

I'm amazed that someone can sustain a real estate career on Maui.  How many transactions occur per month?  I've been there a few times and it doesn't seem like there's a significant amount of residential around.  I'm sure I'm just ignorant on this matter but I'm very curious.

Steve-Yep, check this out. 

http://www.forbes.com/2008/07/29/overpriced-zips-homes-forbeslife-cx_mw_0729realestate_slide_9.html?partner=msnre

Okay...what I want to know is where are these buyers...I want one! Maybe Sacramento isn't the destination that they are looking for...oh well!

Steven- Sounds like a John Grisham novel I'm reading right now...King of Torts!

I just found a way to get contact information for the 400 Billionaires in the U.S.  I will let you know how it turns out..

There is no pain at the pump if you fill your tank with pocket change.  More power to them for making it big.

yeah.......money...alot of money.....is good! =)

There hasn't been muvh of a sloowdown here either. You can still get an ocean view property for less than $900k!

Aloha Steven,

The super rich like to go and do things where other super rich folks hangout. The old guard frequented Aspen, Newport, Palm Beach, Bermuda, and the French Riviera. The new money want properties in Telluride, The Hamptons, New York, Kona, and the Italian Riviera.

I've seen what 40 million will buy you on Kona, but it's not the home, it's who owns the jet parked next to yours at Kona Airport. If you want this caliber of client you have to be in thier social network you have to know names and the bigger the better. Getting on the guest list to exclusive parties and events is one way of meeting the right people.

These new super rich, in general, aren't as class conscience as their predecessors so for the most part they are approachable, affable and interesting people with expensive hobbies.

Peace,

Several years ago I used to believe that one home inspection fit the needs of all people in all circumstances, and they could either buy it at my price or go elsewhere. Then one day when I followed up with a Client and asked her if she had any comments, she said that she was extremely disappointed in my home inspection report. Believing that a complaint is a gift, I engaged her in conversation to find out why. It turns out that she was a property investor/renovater/flipper and didn't care if the old wooden single-hung windows were cracked and damaged and didn't open. She didn't care that none of the kitchen appliances didn't work. She didn't care about the damaged vinyl flooring that probably contained asbestos, not to mention the popcorn ceiling. She was going to G&R.

Since I have spent a good part of my business career renovating properties, I understood exactly where she was coming from, so I developed a BASIC inspection to go with my STANDARD inspection. In realizing that such a niche market existed, I decided to color outside of the lines and see if I could identify other niche markets. That's when I remembered the super rich, the overly wealthy, and the uber wealthy.

One of my consultant clients many years ago was worth about half a billion dollars. I had the opportunity to visit with him at an upscale hotel outside of Salt Lake City. I've always been a Holiday Inn guy, functional without being excessive. I asked him why he stayed at such a place when Holiday Inn was $2,000 a night less expensive and was right down the road. His response was, "Because I can. I don't like carrying luggage and this place carries it for me, from the car to the room and back. I don't like parking my car and this place will park my car for me and retrieve it when I need it. I don't like sitting in restaurants waiting for someone to wait on me. This place calls me to inquire what I want for breakfast, lunch, and supper."

Thinking about that made me realize that with Rancho Santa Fe and other high-priced zip codes here, and with many sports, movie, television, and recording stars having homes or second homes here, there probably was a niche market to provide extraordinary customer service to them when they bought a home. I was right.

They are definitely approachable as long as one steps up to their level.