U.S. Embassy Deputy Chief Welcomes RE/MAX Executives
BANGKOK – RE/MAX, one of the most recognized real estate brands around the world, has recently concluded events in Thailand that focused on ways to grow RE/MAX in that country and throughout the Asia Pacific Region. Included in those events was its inaugural Global Franchise Sales Summit where regional directors and sales consultants met to discuss various topics including how to improve the process of selling franchises and identifying ways to take their businesses to the next level.
“Our company has a unique, agent-centric business model that raises professional standards by embracing agent training, transparency and improvement,” said Chris Pflueger, Vice President, Business Development, RE/MAX, LLC. “We’ve seen tremendous success worldwide and we want to continue expanding our presence around the world. Having the first ever Global Franchise Sales Summit was a great way to get some of our top sales consultants together to share best practices and ideas on how we can continue growing.”
“Professional service start with professional agents” said Eran Milo, Regional Owner, CEO, RE/MAX Thailand “We invite all Thai and Foreign who are interested to learn more and become professional in real estate, RE/MAX Thailand Provides the best local training in the industry that will make you successful in real estate business.”
More than 50 regional directors and sales consultants from over 20 countries attended the summit where they heard from RE/MAX executives and panel members that included the top RE/MAX franchise sales associates from Europe and the U.S. They also discussed innovative ways to implement real estate rules and regulations into the industry with a goal of providing international standards in buying and selling real estate.
Following the two-day event, United States Embassy Deputy Chief of Mission Peter Haymond hosted RE/MAX Chief Operating Officer Adam Contos and other RE/MAX executives at the US Ambassador’s residence. While there, they discussed the benefits of leveraging the worldwide RE/MAX know-how with local Thai entrepreneurship and the growing globalization of real estate.
“It was an honor to be invited to the U.S. Ambassador’s residence to discuss the importance of real estate not only in Thailand, but across the world,” Contos said. “Our goal is to create locally owned businesses throughout the Asia Pacific Region, which will generate more jobs and opportunities for people in those communities and ultimately help grow the local economies.”
The Global Franchise Sales Summit and the welcome reception were followed by the second annual Asia Pacific Convention in Bangkok. RE/MAX Thailand
hosted the three-day conference where about 300 region owners, brokers, agents and prospects from over 30 countries, including the United Kingdom, Estonia, the U.S. and Canada, attended the event.
While at the convention, attendees heard from industry leaders on various topics including the next generation of real estate buyers, new trends in real estate
technologies, how to be a global agent and the ultimate internet marketing strategy. The event featured over 50 sessions that focused on a wide spectrum of real estate workshops as well as educational and networking seminars.
Office candidates were also invited to the conference to learn more about RE/MAX. While at the event, office agreements were signed from Thailand, Myanmar, Sri Lanka and Malaysia.
A spectacular dinner gala and awards ceremony kicked off the conference where regional owners and affiliates in the Asia Pacific Region were presented with various production awards. RE/MAX Australia and RE/MAX New Zealand are set to host the third annual Asia Pacific Conference from August 30 to September 1, 2017 on Australia’s Gold Coast.
With a presence in over 100 countries and territories, the RE/MAX network’s global footprint is unmatched by any other real estate brand. RE/MAX has a
strong and growing presence in Asia, and is in more than 15 countries in the Asia Pacific Region.
“RE/MAX has been successfully embraced in a great variety of economies and cultures around the world, and Asia Pacific is no exception,” said Larry Oberly, Vice President, Global Development of RE/MAX, LLC. “The franchising concept has become a very attractive business model for entrepreneurs who like freedom and flexibility and want to do things differently.”
Earlier this year RE/MAX was ranked as one of the world’s fastest-growing franchises in Entrepreneur magazine’s Fastest Growing Franchise Rankings for 2016. The global real estate franchisor was the highest ranking real estate franchise on the list and took the 17th spot overall.
Less real estate transactions in expensive cities like New-York and San Francisco, and more transactions in smaller cities. Where do the investors come from?
In the United states, the real-estate market continues to grow and flourish but the international buyers are changing their focus from prestigious and well-known big-city properties to low tag price properties. The main reason for this shift is the rising costs of the housing market, along with a strong dollar currency that charge a high currency conversion fee for international buyers.
“The slowdown in financial growth all around the world, the decline of foreign currencies and the financial market upheaval, have presented highly complex challenges for the foreign buyers in this past year”, says Laurence Yun, head economist of the National Association of Realtors (NAR). “These obstacles have caused a slowdown in sales with buyers that live abroad, but foreign immigrates’ purchases have gone up recently, which has brought the total sales made by foreigners to the second highest it has been since 2009”.
Non-American buyers have purchased residential properties for a combined total of 102.6 billion dollars within the US between April 2015 and March 2016, according to the NAR annual report of international activities in the American real estate market. The total sum of purchases has in fact dropped by 1.3% compared to the last year, but the number of assets has gone up by 2.8%, to 214,855 properties. The average value of the properties purchased by foreigners was higher than the average price of all properties in the US.
The Chinese are leading in the Global acquisitions
In terms the buyers’ nationality, the Chinese have continued to be the leading force. China has a higher number of sale than all four countries that follow the list, combined, and has 3 time more sales that the country that follows it, Canada.
The Chinese bought assets of higher prices than the average. “Although the Chinese currency is weak compared to the American dollar, it is still stronger than it was 5 or 10 years ago, so the properties in the US are considered reasonably priced in the long run”, Yun writes in the report. According to the report writers’ analyzation, real estate in the US is considered a safe and cheap investment compared to the real estate market in Asia, due to the upheaval in the financial market around the world.
“The outstanding growth of China’s economy has created a large social class of wealthy Chinese. And with the slowdown in the country’s economy, those people have begun looking for better investment alternatives, and many have come to the conclusion that American real estate is a safe bet”.
The main cause that drives the Chinese to purchase properties the US is the idea of long-term investment, and the second reason is that the Chinese invest in the US for immigration purposes, the Chinese also think ahead in regards to family and children and will be prepared to buy an apartment for the use of their children’s future education, even if they have not reached puberty yet.
In terms of investment locations, 5 states make up half of the purchases made by foreigners: Florida (22%), California (15%), Texas (10%), Arizona and New York (Each 4%). The buyers from Latin America, Europe and Canada prefer Florida and Arizona. The buyers from China surged to California and New York. Texas saw a mix of buyers from Latin America, the Caribbean and Asia.
Although the US is the country that has the highest demand of the Chines buyer, RE/MAX International sales data shows that the Chinese purchase properties also in, Australia, United Kingdom, New Zealand, Canada, France, Japan, Thailand, Spain and Singapore.
Chinese spent over 50 Billion USD buying Properties worldwide in 2015- How much was spent in Thailand?
Chinese buyers are exploring their real estate opportunities all over the world and they like to diversify their investment therefore they can search for a property in one location but ending buying in another. Here is the list of the most interesting countries for the Chinese Buyers. Over 24 billion USD were invested in just the US and expected to double this amount in the next 2-3 years. In the next few years the Chinese will invest more and more on buying property outside of China mainland.
The Chinese buyers are divided into 3 main groups.
First group “Investors” – These are people that already have the money to invest and they probably already owning a few properties in their home country, now they are looking to diversify their investments to other countries.
Second group “Education” – there are more than one million milliners in China and they want to provide their future generation a better education and they wish to send them to study abroad (preferably to English speaking country), This group will prefer to buy the property for their kids to study abroad.
Third group “Retirement, Visa & Lifestyle” – Many of the Chinese are looking for new opportunities or a change in their lifestyle when they will retire, they will invest in a business or buy their luxury property for vacation during the cold winter in China.
Chinese Buyers making research before making their investment
Chinese are asking their friends and families, utilizing the power of social media for information and recommendations, they then compile their research before making their final decision on which countries and cities to invest in. They will always look for a better opportunities and higher yields.
Chinese are long term investors and will consider to invest in a property to retire in 10 years from now or buying a property for their kids to study when they will grow up. The time that will take the Chinese buyer to make the decision to buy a property is about 6 months.
Researches shows that the Chinese are searching properties in Thailand and they already start buying properties across country
Ever think to punch your boss, and become independent? You can become franchisee of one of the great chains, even without great initial capital investment. It mostly matters to examine the chain’s reputation, advertising strategy, and whether the financial model is profitable.
Author: Eran Milo CEO, RE/MAX Thailand Master Franchise 29/4/2016
Many people dream of becoming self-employed, but not everyone possesses the required experience of starting and managing a business, which could incur severe financial losses. One possible way of doing it is via a franchise option of stable and well known store chains, in various commerce fields, which can provide support, guidance and escort along the way for managing an independent business.
The franchise path allows people to become self-employed through a brand of proven reputation and an already operating business, one which presents a proven profit potential and business outline. The franchisees receive a readymade business to their hands, along with a tight escort and training of the chain, in all areas of ongoing work and management. Those include guiding sessions that create shortcuts and can spare many mistakes that, most likely, would have happened along the way. Thus, the chain allows you to jump directly to self-employment under its wings.
Even if you are not certain in the area you’d like to deal with, in the world of franchising you can choose the field that appeals the most to you, even if you lack the experience. Another significant advantage is that, as part of the chain, the franchisee holds a tremendous buying power that manifests itself at the stage of starting the business, in faster receiving of service and goods from architects, contractors, signage and so forth.
In addition, it comes to evident in the ongoing operation of the business, and stocking at very low rates thanks to the chain’s strong buying power. So if you’d like to become franchisees – following are the most significant advantages of Chain Franchising, and some useful tips:
Well known store chains have an already existing reputation, and so before anything else it’s vital to look into it – what do the existing customers and the potential ones think about the product or the service. It’s important to check how many years the chain is active and operational, where the recommended minimum is 4-5 years, and of course how many active branches it has (the minimum is 6-10 branches in a national spread). It’s also important to check the franchisees’ reputation, and consult with them.
If the chain has an international exposure it would be an immense advantage.
When going independent via the franchising path you don’t have to invest a significant amount of your own capital (depends on the type of franchise), but it’s important to make sure you have at least 50-60% of the investment amount.
It’s important to check with the chain how much time, on average, it takes to return the investment.
Every business is run by people, it’s important to choose a chain that provides you with the full coverage of all the required knowledge. You should check the training processes of the chain, and your commitment to meet the standards and the goals. Is there a training system for employees and managers?
The management system of the chain includes advanced management interfaces for ongoing management of the business, training manuals and running systems for salaries management, manpower management and costumers service. The chain is experienced and skilled, and typically chains develop a management system that is suitable for the chain branches. A new franchisee doesn’t need to start building one from scratch, while making errors along his way to a working management interfaces. And so, it’s important to check before contracting with the chain that the management layout is skilled and of good quality.
Marketing and Advertising
Chains typically work with advertisers and marketers in various media channels, and so, franchisees can benefit from a large exposure via advertisements and marketing, solely for being connected with the chain. Obviously, it’s important to check which media channels the chain is advertising in, how it is performed, and the advertisement strategy and budgets as well.
Store chains have a financial model that was built according to the chain’s experience, and using expert advisors. This model allows the franchisee to conduct a feasibility check (“Go / No Go”), to consider initial costs, operational costs and profitability. It’s important that the franchisee will check if the financial model is profitable enough, and that the existing trading conditions are good. The advantage is that when an inexperienced individual enters this world, he can assess his profit margins and the general financial outlook of this business, which are very significant to self-employees.
- Operational Model – Check that the model is simple and easy to operate – it’s important to distinguish between operational model of a product and a service.
- Chain Owners – It’s imperative to have a meeting with the chain owners and the management prior to purchasing the franchise, since interpersonal chemistry is of high significance further down the road. A chain is like a family that escorts every franchisee along his way.
- Area of Commerce – If you focus on a certain area of commerce, it’s important to look into several chains that deal with it. If you are focus on the Area of Service, you will need to look if the service has demand in your area.
- Franchise Contract – When you receive the franchise contract copy it’s important to examine all the details thoroughly, such as contract period, regular payments, cancellation option, and franchisee’s commitments. If the business proves successful, you would most likely want to secure an option to extend the contract further.
- Profit Potential – You need to check the numbers; it may happen that in your area the numbers won’t work the same way has the chain will show you.
you want to see if the chain has any market research regarding your area and the potential profit.