In our economy, we’re seeing a trend toward international investors. This global trend is largely the result of the world economy becoming interconnected. Foreign investment is only expected to increase, so there are a few key points to consider for anyone involved with global real estate transactions.
Foreign investment can open doors for business expansion, increased revenue and opportunities in various markets. Despite opportunities, there are some challenges that will need to be overcome for successful relationships. Some will be financial or bureaucratic, but most challenges will be cultural or linguistic.
Cultural Sensitivity
When dealing with clients or investors from a different country, you should be aware of the cultural norms of that country. If applicable, learn to speak some of that country’s official language. It will show your dedication to learning about their culture, which can speak volumes about your commitment to cultivating a trusting relationship. However, you shouldn’t try to assimilate in a way that could be offensive to the culture.
If possible, include staff with background in the cultures you’re working with. In addition to helping build rapport with the clients/investors you’re working with, they can provide insights about relevant business strategies and the way business is conducted. For example, are real estate professionals perceived a certain way? Positive or negative? Are there any special considerations for contracts or disclosures?
Clear Communication
Any communication with someone from a different culture should be clearly translated. Even if two countries both speak English, some phrases don’t translate well between cultures. To avoid confusion, familiarize yourself with any industry-specific jargon that may be used in that area.
In addition to direct communication, this is also important for any kind of marketing or advertising you’re planning. Many global clients are frequently traveling, so any communication should be easily accessible by mobile device.
Be an Advisor
Global clients who are unfamiliar with certain aspects of investment may need help navigating the complicated process. They may rely on you to handle a great deal of the process. On a related note, some investors may be comparing markets among different cities and countries. If you are knowledgeable on the global real estate economy, it will highlight your expertise in the field.
When dealing with international investors, the most important tip is to be honest, transparent and open-minded. If you’re presented with an international business opportunity, do the proper research before engaging in the bulk of your client communication.
