One of the basic rules of investing is diversification. We are advised to have a basket of investments - a variety of stocks (small cap, mid cap, large cap), some short term bonds and some cash. We should consider adopting this rule for our own business. Most real estate agents choose to farm locally, often their own neighborhood. While this can be an excellent practice, particularly if you become "the expert" in the area, it doesn't guarantee sales when the general economy slumps. Going global may be an option for diversifying your business in a slow economy.
As a Certified International Property Specialist (CIPS), I belong to a network of agents around the world. I receive emails of listings outside of the United States. Often they are from Panama, Costa Rica, Mexico and the Caribbean. Agents in the U.S. can do business in these countries, if they partner with a local agent. Panama is fast becoming a favorite spot for U.S. retirees due to the fabulous climate, booming real estate market and the local currency, which is the U. S. dollar. The Panama Canal is being expanded, which should bring in more global business to the country. Costa Rica has been a favorite for years, but prices have soared. You may want to consider Honduras, Nicaragua or Belize, which are still emerging real estate markets. I was in Honduras two years ago, and was amazed at the number of foreigners investing in the country. The country is fast becoming a favorite destination for eco-tourism. A number of high end hotels have opened to accomodate this trend. You may want to suggest these destinations to your local builders and developers.
Widen those horizons! Attend a NAR convention and make connections with agents across the country and around the world. CIPS is a National Association of Realtors designation, and there is an area for international brokers at the convention. The brokers are grouped by country. They are happy to meet American realtors and form referral relationships. For more information about CIPS, contact www.realtor.org/international. CIPS offers a variety of courses relating to doing business in different parts of the world. There is training in local customs, local financing practices and how to conduct business in an appropriate way for each region.
International training is well worth the time. Our world is becoming smaller. How many businesses in your city do international trade? How many manufacture overseas? Approach them and ask to get on their roster of real estate agents for their international employees. They may not need you, but your request will probably get their attention Is there a university nearby? I meet and work with people from all over the world, coming to New Haven County to work at the local universities. Relocating international professors would benefit from your training. It's a big exciting world, and opportunities are emerging for agents willing to go beyond their traditional borders.
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