Boulder Real Estate Services

Six Ways to Make People Like You

Sat, 05 Nov 2005 17:45:11 GMT

The book, How to Win Friends & Influence People*, consistently makes the top five whenever there is a survey of most influential or inspiring books, and is often second only to the Bible. Dale Carnegie outlines - in very simple steps and examples - how to be nice without letting yourself get walked on.

The section titled, Six Ways to Make People Like You, reveals six traits kind people of the world share:

Become interested in other people. Note that he doesn't say “show interest,” but rather "become interested” - change yourself for real, rather than practicing handy habits. Especially in business, it's critical that we learn to see prospects as people rather than as sales.

Smile. There's probably nothing so positive and contagious as a simple smile. If you have trouble smiling sincerely, get your mind out of the dumps and think about something that will make you smile.

Remember that a person's name is to that person the sweetest and most important sound in any language. If you are not a pro at remembering people's names, become one. If your mind is dividing people into “important” and “not as important”, remembering only those names you value, you're at an enormous disadvantage - in addition to being a snob.

Be a good listener and encourage people to talk about themselves. Most folks don't need much encouragement, but those who do will likely thank you for such a great conversation.

Talk in terms of the other person's interests. Re-ignite your childhood curiosity, and ask questions! When possible, learn in advance what their interests are and spend a few minutes each day researching those topics so you have something to discuss the next time you chat.

Make the other person feel important - and do it sincerely. Notice the talents and abilities of others. Show gratitude to the grocer for not smashing your bread. Admire the speed of the clerk at the DMV. If you can't find something complimentary about another person, you're not looking hard enough.

I hope Carnegie's tips serve as a reminder for how you can make the world a better place.

compiled by Dale Finney

Trip Report

Sat, 05 Nov 2005 17:43:43 GMT

The purpose of this trip was to participate in the annual China/U.S./South Korea conference, meet with the U.S. Consulate in Hong Kong, attend FIABCI’s Asia-Pacific Real Estate Conference in Osaka and attend meetings with our Japanese bi-lateral partners in Tokyo .

China

Xianxian Ye, NAR staff, met me at the Beijing airport and we flew together to Nanchang , a smaller city in southeastern China of about one million. The annual three-way conferences have previously been held in Beijing but the China Real Estate Association (CREA) wanted to bring the conference to members outside the major metropolitan areas such as Beijing .

Following a lengthy history of Jiang Xi province by the Director of the Provisional Real Estate Department, I was given the honor of presenting the initial speech on a subject requested by CREA: Green Building . Using materials given to me by one of the major U.S. green builders, McStain, as well as information, photos the diagrams from various Internet sites, the hour long (including interpretation) Power Point presentation was filled with graphics. Beyond a description and illustration of Green Building , my emphasis was on its critical importance in building a sustainable environment planet-wide.

My audience consisted largely of developers and government officials; by show of hands, there were no builders or brokers. Based on questions and comments I received afterward, the presentation was very well received and could easily be used again by myself, PLs and others within the IOC “family”.

In addition to the conference, Xian reviewed with me the status of NAR’s real estate training in China . Not in any order of priority, the following is a description of the current state of the program:

1. Currently Xian is trying to determine the current status. Four or five training centers (connected to either the Ministry of Construction or the Ministry of Labor) have already signed agreements to present the training materials and several more are in negotiation to do so. I do not know the location of these centers but most/many are at local real estate associations.

2. The materials are based on the GRI with additional Chinese topics/information. However, at this time, students will not be granted the GRI designation. International membership in NAR will be available but will not be encouraged as the benefits of such membership require the ability to read English and use the Internet.

3. The training will be 10-12 days in length and be divided into basic sales training for students with no experience in real estate and advanced training for current agents. The basic portion is complete but the advanced materials are still being developed. I do not know who/what is preparing these curriculum materials but it will “take time” to complete.

4. Instructors are/will be Chinese. An initial Train-the-Trainer was presented by Mike Brodie of Texas earlier this year; there were eight graduates. A second group of 15 were trained by professors at a Beijing teacher’s college.

5. The trainers are required to pass the same exam as will their student. However the test is apparently too difficult based on the “high” failure rate among the prospective trainers. The test is currently being revised as a result.

6. For the first 500 students, NAR will receive $50 for each student that passes the exam. Between 501 and 2,000 (I do not know if this is per year or cumulative), the amount will be $40/student. Xian, conservatively, expects 1,000 students in the first six months, 2,000 in the first year of operation. China (who???) is estimating 20,000. Getting the money from the Chinese government to NAR presents some difficulties and Xian is working on finding an appropriate solution.

7. Each successful student will receive dual certificates: one from the Ministry of Labor which is effectively a license and one from the NAR. The Ministry of Construction currently requires four to five licenses to operate a company but some cities, mainly Shanghai , have their own licensing program and do not recognize the national licenses. This is a very confusing situation.

8. CREA’s role is to facilitate where possible/necessary. They have recently developed a new Institute of Appraisers and Agents (whose members will be graduates of the training???).

9. .The current training materials are for agents. There is no brokerage management training other than a few (how many?) CRB courses that have been offered in China . Xian and I discussed this issue and I have emailed him the training materials I developed for the two-day brokerage management course I taught in Georgia for IRPF in May, 2005.

10. Bottom line, training and brokerage in China have a “frontier” aspect…Xian says it’s like the wild, wild west.

Some comments about the current Chinese real estate market:

The “government” controls commission rates at a total of 2% resulting in graft by agents. However, the Ministry of Construction caps commissions at a total of 3%. In actuality, the rate paid is much lower because of rebates to sellers.
Some agents do take exclusive right-to-sell listings.
Even large firms have relatively few listings.
The government has a department that keeps tract of sales data. The information can be purchased but is not generally made available to the public.
To stem China ’s overheated market in which investors, not users were buying and flipping, the government has increased taxes on such transactions. As a result, the market in Shanghai has dropped by 70%-80% while that in Beijing has dropped by about 50%. CREA’s Mr. Gu believes that the overheated real estate market will soon be over.

During my “free” time on 9/25, Xian and I toured several sites in Nanchang . Historically this is a very interesting area as it is the birthplace of Mao’s Red Guard and site of fierce fighting between the Guard and Chiang Kai Shek’s Nationalist army. On 9/26, Xian arranged for me to take a tour (with interpreter) of the Luzon Mountain area, one of China ’s three major summer resorts. This is an incredibly beautiful area of far vistas, lakes, ancient trees and rocks. I enjoyed the trip a great deal.

Hong Kong

On September 27^th, Xian and I flew from Nanchang to Hong Kong then took a taxi to the U.S. Consulate in the Central business district for a meeting chaired by Sarah Kemp, the Consulate’s Commercial Consul (sarah.kemp@mail.doc.gov). Approximately 15 persons, including other U.S. Commercial Service staff, several state (Illinois , North Carolina , California ) Asia-Pacific economic development office heads, Xian and myself were in attendance. The purpose was to do the initial planning for a real estate expo to be sponsored by the Consulate.

Based on this meeting, several emails with Sarah Kemp since and discussions with Miriam, the following may be true of the Expo.

Although the Consulate initially planned to hold the Expo during September 2006, this date will have to be moved to winter or spring of 2007 since MIDEM Asia has scheduled a real estate expo in Hong Kong on 9/26-29/2006. (Miriam and I met with Christine Law, MIDEM’s Asia representative during the APREC meetings.)
The purpose of the Expo will be to highlight high-end investment opportunities in the U.S. The Consulate sees itself as the “investment manager for China and Asia ”. The Expo will therefore consist of American exhibitors and be attended largely by Asian investors, primarily Chinese and Hong Kongese. The current goal for the U.S. exhibits is 75% commercial, 25% residential with the addition of various service providers (banks, law firms, etc.).
This will be a three-day event (including 1 day of conference activities) which will begin with a “fancy” dinner before the opening at which major portfolios will be presented and major sponsors will speak. The remainder of the time will consist of the exhibitions, networking opportunities and presentations primarily by Expo sponsors.
Demographics of targeted consumers are:

Hong Kong and Asian residents with incomes over U.S. $12,000/month
Developers
Manufacturers expanding into the U.S.
Investment funds
Two commercial tracks: U.S. $0-10 million and $10 million and above

Sponsorship levels will be $50,000 and at least five $10,000 sponsors.

Benefits to the $50,000 “partner” will include invitations to exclusive dinners with top developers & investors, speaking spot at dinners, 2 speaking slots at the conference, main signage and media exposure, materials distributed to all visitors and copy of the attendee list.
Benefits to the $10,000 sponsors include 1 speaking slot at the conference, signage and media exposure, materials handed out to all visitors and copy of the attendees list.

The remainder of the income side of the budget will be consisting of booth rentals.

The Expo will probably be held at the new (currently under construction) Four Seasons Hotel (five star quality) which will emphasize the high-end nature of the products exhibited.
Recruitment of exhibitors will include: U.S. Consul General letter to U.S. Governors, state agencies that promote investment & economic development, property and investment agents, banks, law firms and other service providers.
Marketing to prospective visitors will include attendance at the China Real Estate Entrepreneurs Association in Beijing , mailings (email & snail) of brochures/packets, magazine and newspaper promotions.
In terms of the U.S. real estate market, Foreign investment rose by 59% in 2003 and is expected to increase by another 11.9% in 2004. Commercial real estate had a 4% growth rate and 2.4% ROI in 2005. For residential real estate, there was a 6% growth rate and 8.8% ROI in 2005. These numbers are from the Association of Foreign Investors in Real Estate and represent numbers that are very attractive to foreign investors relative to most other countries.

Japan

In Japan , I joined Miriam Lowe, Al & Marguerite Mansell, Annie & Andrew Adams (Mansell’s daughter) and Takashi Misawa. September 27-30 was spent in Osaka at the FIABCI APREC conference, October 1-2 we were in Kyoto for R&R and October 2-3 we were in Tokyo for additional meetings capped by the 2^nd Japan-U.S. Summit. With the exception of Takashi, we all returned to the U.S. on October 4^th.

FIABCI ASIA PACIFIC REAL ESTATE CONGRESS

The Congress was well attended by approximately 500 real estate professionals. By far the majority was Japanese but many were from other countries in Asia-Pacific as well as the United Kingdom , Nigeria and a few other countries.

We met with the entire leadership team of Zen Ichi (both the local Osaka group and several from their national headquarters in Tokyo ) at their Osaka office building. After this Zen Ichi hosted us at a 9+ course dinner that resulted in excellent networking opportunities as well as being delightful.

During the Friday conference representative of eight countries, including the U.S. , made 20-30 minute presentations about the state of the real estate market in their country. This was most interesting and some of the materials can easily be incorporated into our some of our CIPS courses, especially some of the summary charts and graphs.

While we were at the APREC meetings, we took the opportunity to meet with Christine Lam, Asia Pacific Regional Director of MIDEM to discuss MIDEM’s first annual Hong Kong Expo. She told us the following:

Their marketing plan is region specific with 60% of the exhibitors/participants coming from Asia and 40% from the rest of the world. They’re especially focused on Asia ’s key developers (about 20) and will be quite selective in their invitations.
It will be held September 27-29/2006 at the Hong Kong Convention Center .
Because of their view of the Asians, they will have a lot of structure, especially in the conference portion.
They’ve booked 1,400-1,500 square meters of floor space for the exhibitions.
Christine recently attended an Expo in Beijing ; they charged a $1,000 entrance fee and didn’t produce many of the exhibitors they had advertised.
They’re confident that GIC, ING and other big investors will attend.
The Asian Wall Street Journal has already contacted her for an interview.
The other international trade shows are: MIPEM/Cannes in March, Global City in May, Gropa Planning in April and now MIDEM-Asia in September,
Christine would like to have NAR involved in hosting a cocktail party, participating in a panel or two, etc.

KYOTO

We traveled by bus to Kyoto and stopped at several temples and gardens upon arrival. That night we stayed at the Sumiya Hotel, a traditional Japanese Inn…a marvelous .experience! Perhaps the most interesting part of the Kyoto trip was going to a geisha house that does the initial training of girls 15-20. Marguerite, Annie, Miriam and I just couldn’t get our heads around the concept…just ask us!

TOKYO

We took the bullet train to Tokyo , arriving late afternoon at the wonderful Hotel Okura. Takashi had arranged for the red carpet (literally!) treatment which including flying of the American flag. Throughout our stay, we were treated so very well.

Yukio Yamaoka of Rancho PalasVerdes, California, the new PL to FRK and RECAJ met us at the Okura on the 2^nd, joined us for dinner, sat in on Al’s three interviews with Japanese media the morning of the 3^rd (and assisted occasionally in the interpretation) and attended the Japan-U.S. Summit on the night of the 3^rd. He was briefly introduced at this last event but will need to be more completely introduced to FRK/RECAJ leadership at another time. I’ve asked Takashi to be sure this happens.

During the afternoon of the 3^rd, we visited Recruit, the securitization association, three professors from Meikai University and the national headquarters of Zen Ichi.

Recruit is a very large organization that provides support, especially media support, to a number of industries, including real estate. They print seven or eight real estate (for sale, for rent, second home/resort properties, etc.) large catalogs every other week. Some are free to the public, others can be bought on the newsstand. They also have a national web site and a mobile phone data download facility. They’ve attended NAR conventions for several years and will be in San Francisco . As they’re now interested in providing NAR designation education, they’d like us to arrange several meetings for them. I’ll contact CRS, Miriam will contact REBAC as well as have International staff discuss an international GRI with them. Recruit works closely with several of the Japanese real estate associations and, as a result, seems to be a good match. Any education presented in Japan would need to be taught in Japanese which means any of NAR’s institutes, societies and councils would need to develop a train-the-trainer plan.

Regarding securitization, this has become a major financing tool for major commercial projects very similar to U.S. REITs.

The Meikai professors wanted to discuss how the U.S. provides sales data as the Japanese government has decided that publicly available sales data could prevent a future bubble like the one that happened 15 years ago. Our answers obviously were that there are many ways this is done as it varies from state to state. Al stressed the MLS as the most accurate source, especially NAR’s new Pending Sales Data Index.

Our meeting at Zen Ichi’s headquarters was a courtesy call with photographs and gift giving.

The Japan-U.S. Summit was a meeting of the top leadership of Japan ’s four major real estate associations and the NAR. After introductions, each organization described their association and outlook for the future. As most of them had attended APREC, Al spent his time explaining in a very clear fashion why he/NAR believes that there is no real estate bubble that will break. The Japanese were quite appreciative of his remarks.

After the Summit , we had a most elegant and delightful dinner with a great deal of discussion both business and fun; it was one of the best networking events in my experience.

Bottom line, I was able to cover a great deal of territory both in terms of land and people.
Although initially I was somewhat reluctant to attend the APREC meeting, coming to Osaka provided me with the opportunity for many other meetings that proved most valuable.

Broker Open

Mon, 08 Aug 2005 21:01:27 GMT

BRS moves downtown

Thu, 04 Aug 2005 16:04:41 GMT

Boulder Real Estate Services is proud to announce we've moved to Downtown Boulder. You can find us at the corner of Broadway and Pearl, just above Abercrombie on the Pearl Street Mall. Conveniently only our address has changed. You may reach us at the same phone number 303-442-3335 or fax at 303-442-3925.

By mail our address is

Boulder Real Estate Services

1942 Broadway Suite 314

Boulder, Colorado 80302

In person we can be found in Suite 210, just one flight up from street level. Enter on Broadway or Pearl.

OPEN HOUSE this Sunday 5/14

Thu, 12 May 2005 21:44:20 GMT

Looking for the perfect plains home with spectacular 360' views of snow-caps, plains & city, privacy, spacious rooms, wrap-around covered porch, 3 acres, basement mother-in-law suite with outside entrance-this is it! Easy to show. 3 fireplaces. Bordered by 27 acres of ag.conservation easement. Mature landscaping. Sun room with spa. Shop with power. Many flex rooms. Buyer to verify all measurements including sq. ft. Landscaping to be completed before close.

Spring Cleaning Part 2

Fri, 06 May 2005 15:48:28 GMT

Spring is traditionally the time to open the windows and clean out the cobwebs. Although it may seem like a daunting task, it doesn't have to be. Real Simple magazine’s Elizabeth Mayhew was invited on the "Today" show for a three-day series to talk about easy ways to break big chores down into simple steps, as detailed in the May issue. Here is the first excerpt:

DAY 1: GENERAL LIVING AREAS

General dirt
Take off your shoes when you enter the house. Eighty-seven percent of the dirt in our homes is basic tracked-in soil and dust.

Keep an assortment of comfortable house slippers by the front door to encourage family members and guests to take their shoes off. Of course, if you’re entertaining a large group of people in your home, this isn’t always possible. You have to expect a certain amount of mess in these situations — just dust and vacuum after everyone’s gone, just as you clean up dishes.

Tracked-in dirt can almost always be removed dry, so you can put off the need for professional cleaning as long as you vacuum and dust regularly.

Dusting
At Real Simple, we love microfiber cloths, the no-chemical alternative to dusting. They’re great for the environment, just throw them in the wash and re-use.

When you dust, let gravity work for you. Start up high, and work your way down, saving vacuuming for last. This is the most efficient way to clean.

The Starmop ($17, www.starfibers.com) is a good tool for cleaning dirt off the floor. Its microfiber cleaning pad attracts dirt without leaving a dusty trail. For really dirty floors, combine it with a floor cleaner, like Earth Friendly Products Floor Cleaner, or Murphy’s Oil Soap.

Upholstery
If there’s a W on the care tag, you can clean the piece yourself. We recommend doing it once or twice a year. If there’s no W on the tag, play it safe and consult a pro, getting it professionally cleaned about once every two years.

1. Add two capfuls of Woolite to a bucket of cool water. Dip in a sponge and wring it out well, then rub a thin layer of the solution onto each cushion, starting with the dirtiest side.
2. Balance the cushions against one another or the wall to dry. Put colorfast towels or white paper towels between points where pieces touch, leaving as much surface area as possible exposed to the air.
3. Clean the body of the sofa or chair, wringing the sponge out well so you’re using as little liquid as possible. Let all pieces air-dry before reassembling to prevent mildew.

Super Sponge – This dry-cleaning sponge is a cellulose foam-latex pad that cleans without water or any harsh chemicals. When we consulted cleaning experts for this story, this was the one product that won unanimous praise. The foam-latex attracts particles of soot, dust and pet hair from upholstery, fabric shades and lampshades. It’s like an eraser, and best of all, there’s absolutely no toxicity associated with this product. But don’t expect it to remove stains.

After vacuuming the fabric, run the sponge across it in short, even strokes, being particularly gentle with delicate silks and wools, which can stretch if pulled. When the sponge starts to show dirt, wash it with soap and water, wring it out, and let it air-dry. (Ace Professional Soot & Dirt Remover Sponge, $4 at Ace Hardware stores)

Drapes
It’s a good idea to have your drapes professionally cleaned once every couple years. Giving them a regular, thorough dusting will limit expensive trips to the dry cleaner.
1. Gently tug drapes to open pleats. Vacuum each panel, using a low setting and the brush attachment. Hold the brush an inch away to avoid pulling on delicate or loosely-woven fabrics.
2. Pay extra-attention to the lower foot of the drapes, where dust and dirt accumulate close to the floor.
3. To remove smudges, apply a bit of baby powder to a clean toothbrush and gently brush the spot. The powder protects the fabric and helps lift dirt.

Rugs
You should have area rugs professionally cleaned once a year, but to minimize dirt buildup in between cleanings, here are three easy steps.
1. Place the rug facedown on an old, but clean sheet, and vacuum it thoroughly. Turn it over, and vacuum the other side.
2. Using a sponge or a clean, damp towel, gently blot dirty areas several times. Alternate with a dry towel to keep the moisture to a minimum.
3. Work carefully over the damp areas with a soft, clean carpet brush to raise the pile and expose the fibers to the air. The agitation will dry the fibers and lift any remaining dirt.

Gail is on her way to Washington!

Thu, 05 May 2005 21:46:18 GMT

RISMEDIA, May 5 – More than 8,500 Realtors will be in Washington, D.C., next week to take their legislative concerns to Congress, to find out more about the real estate boom and to tour the National Association of Realtors new building.

Realtors coming to NAR’s six-day Midyear Legislative Meetings & Trade Expo will attend a series of political forums on federal issues which will provide members with insights and information regarding important legislative and regulatory issues facing the industry.

Chief among their concerns is the real estate market outlook—that is, will the real estate boom, which has buoyed the economy for the past five years, continue? Realtors also will want to impress upon their congressional leaders the importance of passing legislation that would allow small businesses to enroll in the same kind of health care plans enjoyed by large corporations and unions.

Key legislators, federal agency representatives and top industry executives will address attendees at this year’s meetings on issues that impact real estate. Of special interest to Realtors is how proposed reforms to mortgage giants Freddie Mac and Fannie Mae will affect the real estate boom and their businesses, and programs to increase minority home ownership.

On Wednesday and Thursday, May 11-12, members and guests will have opportunities to tour the new NAR headquarters building, at 500 New Jersey Avenue, N.W.

Some key events include:

The Regulatory Issues Forum, Tuesday, May 10, 9:30–11 a.m., at the Marriott Wardman Park Hotel, will focus on proposed reforms of government-sponsored enterprises Fannie Mae and Freddie Mac, and their impact on the real estate industry. Several experts, including Kent Colton, principal of K. Colton, LLC, and fellow of the Harvard University Joint Center for Housing Studies, and Richard K. Green, professor of real estate and finance, George Washington University, will review the proposed regulatory reforms and their possible effects.

The Land Use, Property Rights and Environment Forum, Tuesday, May 10, 11 a.m.–12:30 p.m., at the Omni Shoreham Hotel will feature Rep. Richard Pombo (R-Calif.), chair of the House Resources Committee (invited), and Assistant Secretary Craig Manson, of the Fish, Wildlife and Parks Service, Department of Interior; Keiran Suckling, senior policy analyst, Center for Biological Diversity, and Jim Sims, executive director, Partnership for the West. Speakers will focus on the Endangered Species Act – current status of the act, how it works to protect species, and proposals to reform the act to make it more protective of both species and property rights.

At the Equal Opportunity-Cultural Diversity Forum, Tuesday, May 10, 1-3 p.m., Marriott Wardman Park Hotel, corporate leaders will speak frankly about their views for the future and whether diversity may be corporate America’s greatest strength. Invited speakers include Luke Visconti, founder of Diversity Inc.; Jose Menendez, director of emerging markets for Stewart Title Co., and corporate representatives from Hewlett Packard and Marriott.

The Legislative & Political Forum, Tuesday, May 10, 7:30–9 a.m., Marriot Wardman Park Hotel, is a two-part event. The first will focus on Small Business Health Plan (HR 525 and S 406) legislation, one of NAR’s top priorities to address the health concerns of the significant number of NAR members and other small businesspersons who are uninsured due to high costs. The second part will feature an insider’s perspective of the congressional political landscape. Invited speakers include Sen. Jim Talent (R-Mo.), speaking on small business health plans; Rep. Tom Reynolds (R-New York), speaking on the political landscape; and Reps. Sam Johnson (R-Tex) and Steny Hoyer (D-Md.), minority whip of the House of Representatives.

During the first part of the Economic Issues and Residential Real Estate Business Trends Forum, Thursday, May 12, 8–10 a.m., Marriott Wardman Park Hotel, NAR’s Chief Economist David Lereah will discuss recent trends in the economy, with emphasis on the roles of job growth, consumer spending and interest rates on the prospects for the continued expansion of the real estate boom. In the second part, a panel of experts including international real estate executive and author Stefan Swanepoel will discuss industry trends, including the evolution of new business models, the role of the Internet and electronic commerce, as well as factors important for real estate agents to be successful in the future.

The Economic Issues and Commercial Business Real Estate Trends Forum will take place Thursday, May 12, 1-3 p.m., at the Omni Shoreham. In the first part of the meeting, NAR’s Chief Economist David Lereah will provide a review and forecast of each sector of the commercial real estate market on a national basis. Later, a panel of experts will provide an in-depth analysis of tenants-in-common issues from the commercial perspective. The panel will include Lereah; Richard W. Brown, CCIM, senior vice president, Scheer Partners; Daniel S. Rosefelt, JD, CPA, 1031Law.com; and Robert M. White Jr., CRE, president, Real Capital Analytics.

The Realtors Real Estate Related Services Forum, on Thursday, May 12, 1–3 p.m., Marriott Wardman Park Hotel, will focus on issues arising from activities of real estate firms in mortgage lending markets. Speakers are Brian Chappelle, partner, Potomac Partners and consultant for America’s Mortgage Cooperative; Scott Stern, chief executive officer, Lenders One, a St. Louis, Mo., mortgage cooperative; and Ron McGuire, vice president, Tucker Mortgage Co.

The Housing Opportunities Workshop on Thursday, May 12, 3 – 5 p.m., at the Marriott Wardman Park Hotel, with the theme “Maximizing Business Opportunities through Counseling Partnerships,” will provide an overview of how educating and counseling consumers will result in more qualified homebuyers, helping turn prospective buyers into real ones, and assisting consumers enter the first rung of the homeownership ladder. The session will be presented by Cora Fulmore, president of the Mortgage and Credit Center, Orlando, Fla.

The International Forum, Friday, Friday, May 13, 10 a.m.–12 p.m., will feature business planning for international real estate, with a presentation by CIPS instructor Ed Hatch on business planning and an overview of global real estate markets by NAR Chief Economist David Lereah.

The Center for REALTOR Technology, Thursday, May 12, 1–3 p.m., will present a briefing, “Information Security – It’s Everyone’s Business,” at which a panel of information security specialists will provide an overview of the REALTOR Secure program.

The NAR Board of Directors convenes on Saturday, May 14, from 8 a.m.-1 p.m.

The 2005 HOPE Awards: The HOPE Awards (Home Ownership Participation for Everyone), which are awarded every other year, recognizes up to seven organizations and individuals who are making outstanding contributions to the cause of increasing minority homeownership. Rep. Michael Honda (D-Calif.) will deliver the keynote luncheon address honoring the 2005 winners at noon on Tuesday, May 10, at the National Press Club. That will be followed by panel discussions of the winners and their programs conducted at a symposium moderated by nationally syndicated real estate columnist Ken Harney at 1:15 p.m. The Gala will take place that evening at the National Building Museum beginning at 6:30 p.m. and hosted bys Ray Suarez, senior correspondent for the PBS daily news program, The News Hour with Jim Lehrer.

The Realtors Trade Expo is located in Marriott Wardman Park Hotel and will showcase new ideas about products and services to increase productivity. Exhibits from 210 companies in 30,500 square feet of displays will show the newest real estate products and services, ranging from Personal Digital Assistants to lead generation systems, Internet prospecting solutions, Multiple Listing System providers, 360-degree virtual tours, technology and financial services.

Expo hours are Wednesday, May 11, from 10 a.m.-6.p.m.; Thursday, May 12, from 9 a.m.-5 p.m., and Friday, May 13, from 9 a.m.-2 p.m.

RISMedia welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

I'm Looking for Another Good Broker!

Thu, 21 Apr 2005 17:18:20 GMT

Due to the recent retirements of Don Harlan and Helen Wachendorfer , Boulder Real Estate Services, Ltd. has openings for experienced brokers. Work from home (conference room for meeting clients) or lease a spacious, private office in our charming yet high tech and conveniently located Victorian house. Generous commission splits or 100% plus fees. For a confidential interview and summary of services and benefits, call 303-442-3335 or email gail@boulder-realestate.com.

Boulder Real Estate Services, Ltd. is a full service real estate brokerage firm providing individualized service to our clients, both sellers and buyers. We specialize in residential properties, hobby and horse farms as well as lots, acreage, small commercial real estate properties and multi-family properties in one of the nation's most beautiful, affluent and educated communities. Each agent holds a broker's license from the Colorado Real Estate Commission while our senior broker has earned numerous designations.

Spring Cleaning Checklist

Thu, 21 Apr 2005 16:02:04 GMT

Spring Cleaning Checklist
Clean out the garage. Get rid of tools you don't use or that are rusted or beyond repair.
Inspect the roof and gutter.
Examine exterior and touch up if needed. Power wash the outside of the house, including windows.
Drain all sediment from your hot water heater.
Perform maintenance on home cooling systems.
Donate clothing that has not been worn for more than two years.
Using a telescoping vacuum extension, sweep away all cobwebs and dust near the ceilings.
Wash the walls throughout the house using 1/2 cup ammonia, 1/4 cup white vinegar and 1/4 cup baking soda to 1 gallon of warm water.
Wash all inside windows. Vacuum out the tracks.
Vacuum/wash/dry clean all window coverings.
Dust and wash light fixtures and chandeliers.
Wash all knickknacks.
Vacuum lampshades. Replace light bulbs.
Clean out and reorganize the linen closet..
With a vacuum brush, remove hair stuck to walls and ceiling by hair dryers and hair spray.
Deep clean shower, toilet, floor and sink.
Inventory the medicine cabinet and toss expired medicines.
Defrost freezer (if needed) and wash out refrigerator. Toss out expired foods.
Remove screen on stove fan and wash.
Clean oven and soak stove rings and drip pans.
Go through your kitchen appliances, clean thoroughly and get rid of ones you no longer use regularly.
Use your vacuum on the front of the coils and motor to remove dust and dirt.
Vacuum books and bookshelves.
Launder all quilts, blankets, comforters and bedspreads. Turn mattresses.
Move all furniture to the center of each room and vacuum thoroughly.
Rent a carpet cleaner or hire a company to clean your carpets.
Inventory the contents of each room. Force yourself to get rid of the things you don't need.
Have a garage sale.
Put the proceeds toward a family vacation, or visit a local amusement park, water park or favorite restaurant to celebrate the beginning of summer.

Gail and Harley Lyons set to open Yatahai Gardens

Wed, 13 Apr 2005 22:51:05 GMT

Please join Gail and Harley Lyons for their opening reception of Yatahai Gardens this Friday, April 22 from 4-7. Yatahai Gardens is located in Longmont at 6860 Nelson Road. After 15 years of infastructure work the opening will kick off the spring season. For more information please call Gail at 303-442-3335 or email Gail@boulder-realestate.com

Trip Report from Asia

Tue, 05 Apr 2005 15:15:51 GMT

Asia-Pacific Regional: Shanghai , Bangkok , Hanoi , Hong Kong

March 16-31, 2005

The purpose of this trip was multi-fold: 1) to represent the NAR and its CIPS designation at the Brawman International Forum in Shanghai; 2) to meet with the regional USAID representative and offer our condolences to REBA in Bangkok; 3) to participate in the first NAR/VREA conference in Hanoi as well as hold meetings with representatives of the embassy, U.N. mission and USAID; and 4) to hold a planning meeting with SKHREA for the first biannual Asia-Pacific Leadership Summit to be held in Hong Kong in early 2006.

Shanghai

Arrive 7:30 PM 3/17/05, Depart 3:00 PM 3/20/05

Hotel: Grand Pacific Suites

All (Pius Leung, CCIM, John Wong, CRB, Randy Eagar, CRS and myself, CIPS) of the NAR affiliate representatives arrived on the same flight. We were picked up at the airport by Catherine Lee, Manager, and Joyce Zhou, chairman’s assistant, two Brawman employees, and were excellently hosted by Brawman from then until our respective departures. Xiannian Ye met us at the hotel and was with us the rest of the time.

March 18^th consisted of a visit to Brawman’s offices, the spring Real Estate Exposition which included Brawman’s 6,000 unit Beverly Beach development on Hainan Island, shopping in the Yuyuan Gardens area, a visit to the Shanghai Museum and, of course, a marvelous lunch and dinner. The morning of March 19^th was a tour of the Lujiazui financial area and a tour of the Jin Mao Tower , the tallest building in China . The seminar which was the main purpose of our visit took place on the afternoon of the 19^th.

Brawman International Group, Jason Wu, CCIM, CIPS and President and Helen Tang, Chairman, is a large, six year old real estate services company with over 5,000 members. Brawman has been the Shanghai sponsor and promoter of CIPS, CRS, CRB and CCIM courses. Jason and Helen are regular attendees at our NAR conventions and strong proponents of NAR education. Brawman’s services include real estate brokerage and development, architecture, interior design as well as other related services. Due to
Brawman’s size, experience and obvious interest in NAR designation programs, they make an excellent partner for future designation offerings in the Shanghai area.

The Real Estate Investment Internationalization Forum 2005 began with a speech by Yunchang Gu, Vice President and Secretary General of the China Real Estate Association. Having heard Gu several times before, I felt his remarks were more open and realistic than I’ve heard before:

The Chinese are obviously concerned about the market being overheated. Prices have increased 16.4% in the eastern region and are close to 9% in the western areas. The reasons, they believe, are 1) increase in cost of materials and 2) demand exceeding supply. In order to achieve stable prices, they feel they must establish a balance between supply & demand. They will control supply by land controls and need to do a detailed analysis of demand. Their plans for demand include controlling both interest rates and exchange rates and increasing the down payment required. In Shanghai they’ve gone an extra step by imposing a 0.2% tax on the transfer of real estate title

Gu recognizes that the U.S. is not as “nervous” about prices increases in our secondary (resale) market. He therefore believes that China should look at securitizing loans since in China banks are the only source of mortgage loans. China , he says, must learn from its past mistakes and learn from international markets about tax disincentives, control of land supply and removal of old housing in a socially responsible manner.

Another Chinese speaker of interest was Yin Kunhua, Director of Real Estate Research Center in the Finance & Economics Department of Shanghai University. Dr. Yin’s research shows that prices have doubled in the past four years while, in the same time period, disposable income has increased 50%-60%. Real estate has benefited the overall economy of Shanghai and represents 8% of the entire economy (he stated that real estate is 11% of the U.S. economy). About 25% of Shanghai ’s housing stock needs to be renovated and suggests that 500,000 people need to move to outside the city limits allowing luxury units to be built in their place; such units could be used to house foreigners who now make up only 4% of the population. Yin acknowledged the need to build housing for middle income citizens as polling shows that everyone should own their own house!

Bangkok

Arrive 5:55 PM 3/20/2005, Depart 5:45 PM 3/22/2005

Hotel: The Imperial Queen’s Park

While in Bangkok , we had three important meetings which I’ll describe briefly:

1) Parties: E.E. (Skip) Kissinger, Director USAID Regional Development Mission/Asia (providing financial, legal and other procurement services for 30 countries including Iraq and Afganistan), John E. Wasielewski, Director, USAID Office of Development Credit, and Steven M. Weir, Habitat for Humanity International Vice President, Asia Pacific.

Skip began by asking, “What is it that keeps money from flowing to the people?” and stating that loan officers won’t go out into slums not to mention the improbability of obtaining title insurance. He stated that a number of housing coalitions exist around the world, including SE Asia but most are NGOs. As a result, he said he had a strong interest in forming a coalition with private organizations such as the International Housing Coalition Gordon described.

Much of the conversation occurred between John Wasielewski and Steve Weir as they discussed methods of guaranteeing loans to the poor. Apparently this is sometimes done by governments and sometimes by various NGOs. It seems to be the only way in which banks can be persuaded to make such loans.

In terms of Vietnam , USAID has a staff of 45+ but no mission per se although they’re obviously involved. DCA has a couple of programs and John is very interested in Vietnam especially since the Assembly has just passed a micro-finance bill. The real problem, they said, is that housing is pretty capital intensive. Housing loans in Vietnam are a problem given that the government “owns everything” (once in Hanoi we found that this is only true of the land for which owners of improvements have a use right in perpetuity). John’s mission is to provide private financing, establishing a private financial network outside of the state owned banks. He has 140 banks around the world making loans to poor people because the U.S. government guarantees these loans at a 50% level. There’s $10 million in lending currently going on in Vietnam .

In terms of USAID resource people, we should contact David Brunell and Dung (“Zoom”) Binh when we get to Hanoi ; they should be invited to the seminar. We should talk with both David and Dennis Zvinakis and ask to meet with them before our meeting with the Ambassador.

The regional USAID mission has four major strategies: 1) HIVAIDS and health, 2) regional governance and economic reform, 3) vulnerable populations and 4) the environment.

John works very closely with IFC which does some grants; he volunteered to help sell both (?) IHC and our plans for Vietnam to IFC. USAID has no money at this time as 80%-90% is earmarked but both Skip and John are generally very supportive. They indicated that Alexi (?) may have some money we can tap as well as CFTA (?) (HfHI works closely with them).

Providing housing financing for the poor is obviously John’s love. He and Warren Sawyer are working with single women with kids in New England and are now moving that model to El Salvador and maybe to Thailand for victims of trafficking.

In general, we were extremely pleased with this meeting and found all parties to be interested in and supportive of our ideas.

2) Steve Weir, Habitat for Humanity International Vice President, Asia Pacific.

We met at Steve’s office at his invitation following our earlier meeting at the USAID offices. The purpose was to “explore” ideas. Steve was interested in what he perceived to be USAID’s “changing priorities towards housing” and would appreciate an entrée to David Brunell if we can arrange it.

In terms of Vietnam ’s politics, the last People’s Congress was 18 months ago and a lot of the 70+ year olds have now left so those in their 60s are in charge and these people did not experience the war first hand.

NGOs in Vietnam have to either register with PATCOM or sign a MOU with a ministry.

In terms of HfHI politics, Steve shared that there is “some resistance” at high levels for the IHC. However, Steve likes the IHC because it represents private funds and involvement with the equity markets that are just beginning to develop in Vietnam .

Vietnam ’s Women’s Union , a ministry under the local People’s Congress, represents most of the micro financing. HfHI wants to work through micro financing with banks. Statistics show that the micro financing repayment rate is 95% making any guarantees essentially risk free. HfHI has some money which could be used for guarantees. Steve volunteered to do some “arm twisting” if introductions to banks can be made by USAID.

HfHI wants to link the formal and informal banking sectors. It doesn’t necessarily need money but does need introductions and influence.

As background, Steve had a broker’s license in California where he worked for a large Hong Kong developer between 1980 and 1993. The company also provided architectural, computer program services, etc.

3) REBA (Real Estate Broker’s Association) parties: Somsak Muneepeerakui (president), Apichart Archadej (main contact due to English), Ballobh Kritayanavaj (senior VP Government Housing Bank), Siriphan Chenvanich, CIPS, Vivat Phurnprasert, Mike Chetter.

REBA’s current membership is 105 corporate members and 200 individuals. 99% of the members sell their own listings but they are developing a MLS this year. Their listings are generally exclusive. Mortgages are available for up to 30 years at 80%-90% LTV. 100% loans for condos are available if the payments are automatically deducted from the borrower’s pay check. There is a secondary mortgage market, SMC, which has used FNMA as an advisor.

New condos in Bangkok sell for about 100,000 baht/square meter.

There are a number of franchises active in Thailand : ERA, CB Richard Ellis, Knight Frank, Professionals (a Thai franchise) and Realty World ( a Thai franchise!).

The tsunami nearly destroyed Kaola where the wave was 12 meters high. In Phuket, the wave was “only” 6-7 meters high which destroyed the beach but left many buildings unharmed. They estimate that Phuket should be rebuilt in 2 years and it’s current market is strong. The government will build 100,000 homes and charge 1000 baht/year.

The National Housing Authority will build 1 million hoses for the poor during the next five years. The Government Housing Bank will make 100% loans with no need to underwrite since, if the owner defaults, HHA will simply buy the home back.

REBA makes the following requests from the NAR:

Information on MLS
Information on licensing laws
Train the Trainer
A sample GRI program
Information on sources of non-dues income.

REBA has a strong interest in attending the Asia-Pacific Leadership Summit and volunteered to sponsor in 2008.

Vietnam

Arrived 7:30 PM 3/22/2005, Departed 7:10 PM 3/29/2005

Hotel: Somerset Grand Hanoi, an all apartment hotel adjacent to the “Hanoi Hilton”

We (Gordon, Pat Kaplan and myself) spent March 23^rd planning for our March 24^th seminar and meeting with Chuck Searcy, Vice President and Country Representative of the Vietnam Enterprise Group (VEG). Without Chuck, very little of what we’ve accomplished would have been possible. He has an excellent reputation within both the Vietnamese and the general international community in Hanoi , has great contacts, a superb staff and is the “go-to” guy on the ground. Of course, we did some shopping as well.

The remainder of our time in Hanoi included not only the seminar but numerous meetings with critical players. (Plus I went to Ha Long Bay over Easter weekend while Gordon held more meetings.) A description follows.

March 24, 2005: Real Estate Market Development Symposium

Co-sponsored by the Vietnam Real Estate Association and the National Association of REALTOR®s, the Symposium was held in the UDIC’s (a large government developer) office building’s large conference facility. The 60+ attendees sat around a large rectangular set of tables with beautifully upholstered chairs; the table was provided with small tea cups and bottled water. The attendees were high ranking members of the real estate industry including: Tong Van Nga, Vice Minister of Construction; Nguyen Trong Ninh,, Deputy Director Ministry Housing Bureau; Trinh Huy Thuc, Chairman Vietnam Real Estate Association and Director General of the Ministry of Construction’s Housing Bureau; Dr. Truong Anh Tuan, President & CEO Hoang Quan Real Estate Co., Ltd.; Eng. Hoang Long Quang, General Director Urban Infrastructure Development Investment Corporation (UDIC); Nguyen Dang Son, Vice Director Institute for Urban Studies, Director Urban Management & Planning Center and founding member of the Urban Partnership Foundation; Dr. Do Thi Loan, Chief, Department of Natural Resources and Environment, Real Estate Market Development and Administration Office of the People’s Committee of Ho Chi Minh City; Dang Hong Anh, Vice-Chairman and Director, Saigon Thuong Tin; Dr. Nguyen An Binh, General Director, Ho Chi Minh City People’s Committee’s Saigon Real Estate Corporation; and Nguyen Thi Loc, Senior Reporter, Viet Nam News.

Vice Minister Nga began the Symposium by stating the goal was to increase the efficiency of the Vietnamese real estate market, placing an emphasis on legal matters relative to construction and management and the encouragement of foreign investment. He expressed a desire to create a market economy and sees the Symposium as the basis for cooperation between the NAR and VREA, especially in the areas of training and education and assistance with development of laws related to brokers as well as the real estate market in general. One interesting comment was that the Vietnamese feel they have learned a lot about development from China but they cannot learn about brokerage from China . This they must learn from the U.S. and Australia .

The all day Symposium included a fine lunch sponsored by CB Richard Ellis. The speeches were simultaneously translated and the notebooks given to each participant were likewise translated into English for us and Vietnamese for the participants. There were three speakers from each association; for details on the Vietnamese presentations please see the attached copies of their speeches. Gordon Davis spoke on “Legal Issues in the US Real Estate Market”, Pat Kaplan’s presentation was “Building and Managing Low Income Rental Apartments in Urban Areas” and mine was “The US Brokerage System and Its Operations”. Following each of our presentations there were pre-prepared questions, about 8-10 each as well as a general question and answer session at the end. Both Mr. Nga and Mr. Thuc expressed great satisfaction at the end of the program and a strong desire to form a relationship between the two associations, beginning with a Memorandum of Understanding in 2005 (their suggestion).

We were approached by some of the participants, including Do Thi Loan, Chief of the Real Estate Market Development & Administration Office of Ho Chi Minh City and President of the Ho Chi Minh City Real Estate Association. At present, this is the only local association. It was formed 1/31/2005 and already has 450 corporate members and 200 individual members. Loan is a very assertive person who told us she’d been sent to the Symposium to learn all that she could, to write a report for her superiors and, within two months, develop legal regulations governing the real estate industry in Ho Chi Minh City . This is critically important as HCM City is generally recognized as having the most modern real estate market; what happens there strongly influences the rest of the country. I asked her where she received her PhD: she answered that she was in Budapest for five years, wrote her thesis in English and learned her English at the British Embassy.

Our understanding and communication with the Vietnamese continued at dinner for Mr. Thuc hosted by the NAR, a dinner given by Mr. Nga for the NAR delegates and a lunch for the NAR delegates hosted by Mr. Quang. (Mr. Quang will be part of a 20-person high level [vice mayor, Chamber of Commerce, university professors, planning & development officials] delegation from Hanoi which will be visiting Italy , the UK and the US in April. We invited them to visit our D.C. building so that they can learn about high-tech and green construction; at a minimum, a working lunch should be provided in reciprocation for our feast.)

March 25, 2005: Meeting with USAID Staff

For almost one and a half hours, we met with David Brunell, a new USAID employee for Vietnam , and Dennis Zvinakis, Country Manager for USAID Vietnam. Although new to USAID, David has been in Vietnam for the past five years working with private corporations and before that he was in Africa for 10 years.

After explaining both IHC and our thoughts about NAR’s and IRPF’s future participation in Vietnam , David said he “sees enormous potential for our vision”. Housing, he said is a new area for USAID and they’re especially interested in issues of legislation and land use. There’s a great need for regulation and the amount of real estate activity (resale as well as new construction) is “mind boggling”.

David recommended that we contact Steve Parker of DAI’s STAR Project which is responsible for the legal development necessary for the US/Vietnam bi-lateral trade agreement and support for Vietnam’s probably entry into the WTO. STAR is a contract to which a program such as we’re suggesting could be attached. Gordon met with Hank
Baker, one of Steve Parker’s lawyers, over the weekend and will include information on that meeting in his report.

Across the board, Vietnam is in the beginning stages of capacity building. There is strong interest in developing associations within many sectors, including real estate. Our “logic and vision makes all kinds of sense” to David indeed, it could make some real difference for the overall Vietnamese economy. As we expected and had been told in prior meetings, there’s no money in the 2005 or even the 2006 budget for our proposal. However, he said they “will challenge themselves to be creative, entrepreneurial thinking outside of the box” in order to assist us in finding funding.

In terms of numbers, we estimated we’d need about $200,000 over three years for capacity building plus another $50,000-$75,000 to cover HfHI program costs. All agreed that the latter money should not go to actually building units as the Vietnamese can build their own housing units better and more efficiently than anyone from the outside can.

David asked that we summarize what happened regarding the workshop as well as our vision for the future. He also asked that he be copied on all that we do with VREA. Communication should be through Do Hong Hanh, Development Assistance Assistant.

March 25: Meeting with U.S. Ambassador Michael Marine (with Dennis Zvinakis sitting in) (Vicky Spiers, Personal Assistant)

The Ambassador’s first question to us was “how did you get onto my calendar?” Gordon explained his connections with the U.S. Embassy in Beijing that were the entrée. Once that was established we explained both the IHC interest in affordable housing as well as NAR’s and IRPF’s vision for Vietnam involvement. When he asked “what’s the sense of USAID’s Washington ’s support?”, we were able to say strong interest for the IHC. When Marine said he didn’t know of any discretionary funding, Zvinakis said “we’ll look at it” as he “thinks our proposals are very worthwhile”. We were asked to refine our approach, told that “Hanoi can be supportive” but that “decisions are made in Bangkok and D.C.”.

The Ambassador clearly stated that the Embassy can be a resource to use and “can be supportive as long as there are no administrative requirements”. He further suggested that the World Bank and the Asian Bank are possible sources of funding and recommended that we talk with Brad Phillips.

March 28, 2005: Meeting with Mr. Quang and his staff

Mr. Quang was a participant in the 3/24/05 Symposium and requested this meeting as a result. He is the General Director of UDIC which sponsored the Symposium. UDIC works for the state and has 12,000 employees that produce a turn-key development project from identifying and obtaining land resources (all land belongs to the People’s Committee but those who use the land have a perpetual use which can be freely transferred, used as collateral for a loan, etc.), providing all design aspects, construction, sales and building management. UDIC is currently working on several major projects and has about 1,400 hectares in its “land bank”.

He clearly stated that Vietnam wants to be part of the global economy and are doing everything they can to learn how best to do this. They have some concern about the differences relative to land ownership between Vietnam and the U.S. ; we assured him that these differences would not prevent cooperation. UDIC asked for assistance with construction, technology, management and consulting.

They then demonstrated two of their current projects via Power Point and maps. Both are residential high rise buildings. 1) 19-story, five elevators, 10 units/floor varying in size from 76 to 250 square meters and selling at an average of $1,000 USD/sq.m., 170 units total The price varies with size and floor/view. The first two floors contain numerous amenities including swimming pool, work-out facilities, restaurant, grocery store, etc. They were especially proud of having set aside about 4 sq.m. in each unit for hanging clothes since Vietnamese don’t use dryers. 2) 17-floor, 150 units of 100-190 sq.m., 10 units/floor. The windows are sound proof (a Japanese product). Pricing is similar to building 1. UDIC is also building units for middle income families that are priced at about $200/sq.m. Housing for the poor can not be done without strong government financial support which the government currently does by reducing taxes and requiring 30% inclusionary zoning on all new projects. Similarly, a government decree requires that UDIC use part of its capital to build housing for its staff. All UDIC units are for sale, none is for lease.

There’s about two years between pre-sale and move-in; the pre-sales have occurred during the first two hours of offering. Nothing is spent on advertising. Payment is all in cash with no financing. Over the two years, there are four payments: 40%, 30%, 20% and 10%. Upon move-in, owners can use their unit as collateral for a loan but at this time no banks are making mortgage loans as there is no foreclosure system in place.

The problem Hanoi ’s real estate market faces is one of supply. The current population is about 3 million and it’s expected to grow to 10 million by 2020. Hanoi ’s plan requires 8 sq.m. per person which means that the market must add about 1 million sq.m. each year to meet the demand. The current homeownership rate is about 70%. There’s a strong homeownership ethic in Vietnam . For example, in the center city, people often own just 100 sq.m but also own a cottage in a village outside the city which they use for the weekend.

Foreign investment is encouraged. It’s quite easy to transfer profit from Vietnam to the investor’s home country; all that’s required is to pay the 10% VAR and 28% corporate income tax. The initial steps required of a foreign developer are three fold: 1) find a reliable Vietnamese partner that has access to land, 2) obtain permission from the People’s Committee and then 3) discuss plans with the appropriate Ministry. For planning purposes, current commercial rents range from $20-$64/sq.m, The best known foreign investor at this time is the Indonesian, Ciputra, who is building a $2.1 billion residential project on 400 hectares in the northwest part of Hanoi .

At the end of our meeting, Mr. Quang had five questions which, I think, are instructive in terms of the sort of pre-packaged information we should generally bring with us on trips to other countries. 1) Describe the current and future U.S. real estate market. 2) What are the prices of houses, low rise, high rise and single family? 3) Describe modern construction, especially technology and green building. 4) Describe your capital mobilization methods. 5) What kind of homes (low rise, high rise, single family) do Americans prefer? Since most of these are questions NAR’s research & economics group could easily answer, could they be asked to prepare a simple packet annually with such information?

March 28, 2005: Meeting with Jordan Ryan, United Nations Resident Coordinator

Vietnam ’s poverty level ($1/day or less) has reduced from 70% in the early 1990s down to 29% currently. This is attributed to Vietnam ’s Doi Moi policy (a radical economic reform/renovation program that encourages production in the private sector, agriculture and light industries) which began in 1986. Donor money also started coming into Vietnam in late 1993.

Jordan finds that the Vietnamese are very effective at mobilizing once they’ve decided to do so…even when foreigners think it can’t be done. For example, right now VREA wants assistance with smaller development that can be done competitively by Vietnamese developers. He thinks the real estate market really has VREA ‘bugged”…they’re struggling to understand market forces and certainly appreciate its economic power. For example, many of Ciputra’s units have already been sold three and four times and this is prior to any occupancy. This situation presents many opportunities for graft. The Vietnamese are “insanely jealous of the rich Indonesians who have money to burn”.

UNDP has been pushing for a long time to organize various professions, including real estate, into associations. Just recently he’s been finding a positive reaction from the Vietnamese. On the U.S. side, Jordan has developed a close relationship with the ABA which has provided, pro bono, timely comments on Vietnamese legal proposals. The Vietnamese have very much appreciated this assistance.

The Vietnamese know that professionalism is critical. They want to know what it takes to be a professional. Relative to the real estate profession, it’s important that we bring experience from the rest of the world, not just the U.S. (an IRPF/ICREA opportunity?)

Jordan said that HCM City is like the wild west and that, through decentralization, they have the ability to do even more. The current head of the HCM City People’s Congress was educated at Harvard. The Vietnamese see HCM City as the model for the rest of the country so we should take advantage of our contacts and work with HCM City .

UNDP has historically worked through volunteers (often retired executives) who act on a pro bono basis. Since this is generally how we work, we might be able to get some funding through UNDP and should make a proposal through Jordan .

The World Bank is another potential source of funding as they have a fairly big program in Vietnam but they’ll say they don’t have any money. They are interested in financial institution development, especially given the hot real estate market.

Sweden is a major player in land administration. British DFAD has a $100 million/year program in Vietnam from which UNDP has received funding. Possible cooperative programs with our Swedish/UK partners? The Italians, on the other hand are notorious “bi-laterals”.

Pricing is obviously a problem for the Vietnamese as the government sets prices, at least on new construction, rather than using a market pricing system. Part of the financing problem is a handover from the 1993 huge crash of Vietnam ’s credit union system. This (and other factors) as resulted in a lot of discrimination against the profit sector. This is evident in the fact that recent graduates of foreign institutions are encouraged to get a job in government rather than in the private (called “non-state”) sector.

Real estate is one of three or four issues that has the attention of Vietnamese leadership. Our ability to bring concrete international experience in ethics, education/training, law is important. In approaching Vietnam , one should come as somewhat humble, recognizing that the Vietnamese system is different. One effective method of training would be a foreign intern program for Vietnamese real estate professionals: we should explore funding for such a program through NAR’s big broker division and IOC members. Jordan believes that the Communist Party is often more forward looking than the government.

Excellent Hanoi Restaurants (for future reference!)

Indochine

Wild Rice

Emperor

Seasons of Hanoi

Nam Phuong

Com Nhieu

March 30, 2005: Meeting with SHKREA’s Karen Wong and Alex Tang re: 2006 Asia-Pacific Leadership Summit

We have an excellent working relationship with Karen and Alex. In terms of position, Karen is current SHKREA president, Alex immediate past president. Karen just retired from her position as CEO of the Mission Hills development outside of Shenzhen; Alex is president of the huge Centaline Real Estate Corporation. Between them, they have excellent contacts and resources and are willing to take on the necessary in-country planning for this first Summit .

Together we decided that the Summit should begin on with a welcome reception on a Monday night in Hong Kong and end with a farewell dinner at Mission Hills on a Thursday night. The rest of the program will be Summit meetings on Tuesday (including lunch), a Hong Kong property tour (including a box lunch) on Wednesday followed by a motor coach trip (about 3 hours including border crossing) to Mission Hills. Thursday will be a day of networking including golf, tennis, and tours of the Mission Hills’ development (million dollar homes, 10 international golf courses, club, etc.). Depending on hotel availability, the Summit will begin on March 13 (or March 6 or 20 is the 13^th is not available. Karen will obtain a hotel confirmation in the next few weeks. The total package will include the welcome reception, two lunches, conference facility, motor coaches for both the property tour and trip to Mission Hills: the cost of this will be approximately $200/person (we’ll probably charge $300-$350 with the excess to cover contingencies and any remainder going to SHKREA). The hotel (possibly Ritz Carlton) will also be included and Karen will know this cost shortly.

As a group, we decided that invitees should be restricted to leadership of the various (3-5? each) Asia Pacific real estate associations plus SHKREA will invite leadership from Shenzhen and Guangzhou . We would expect about 50 participants. Because of the number of languages represented by this region, simultaneous translation would be cost prohibitive. Since many of the leadership speak English, that will be the official language for all speeches and documents. However, non-English speakers will be encouraged to use a Hong Kong based interpreter (SHKREA will develop a list of available interpreters) and the Reaume Foundation’s hardware will be made available.

All speeches will be no more than 20 minutes with an emphasis on panel discussions and workshops based on the speeches and panels. Topics may include: non-dues sources of income, referral commissions, MLS, licensing, cross-border business, market updates. In terms of the latter, a form will be developed for each participating association to complete in English, each association will be requested to bring 100 copies of these completed forms; in addition, 3-5 associations will be invited to make a market update presentation to the Summit.

To determine the exact topics, a list of possibilities will initially be sent out to all of the associations with the announcement of the dates for the Summit . Associations will be asked to prioritize the list as well as add any additional topics of interest. We’ll ask our PLs and AAs to assist in follow up to encourage both the return of these forms and association participation. Once the topics have been determined, a simple RFP will be sent to all associations to source the speakers, panel participants, etc. for each topic.

We’re quite excited about the prospect of a bi-annual Summit and think this first Summit in Hong Kong will be an excellent model for future Summits which will be sponsored by other associations. A small group (3-5 associations) will determine the sponsoring association for the 2008 Summit .

Pictures from Asia

Fri, 01 Apr 2005 17:33:11 GMT

Photos courtesy of Xiannian, N.A.R.