Globalization made our world smaller, and every day more and more real estate developers become international. We jump from one country to the other like sailors following the good winds. We need to build solid international business strategies in order to be successful in this venture. When we disembark in a new country we need to design these strategies based on different factors, which are distinct for each new location.

During our preliminary analysis we need to answer some important questions:

• In which phase of the cycle is the country?
• What are the risks we would face in that particular country?
• How do we measure those risks? What are the strategies to mitigate those risks?

In order to understand this, we will start by discussing “Why do real estate cycles happen?”

• What is the difference between physical and financial cycles?
• What are the ingredients to “map the cycle”?
• What are the drivers for the investors to enter or exit a market?
• How do we take advantage of expansions as well as of recessions?
• How do we get ready for the new cycle?
• How do we anticipate next moves to beat the competition?

On Day 1 we will put hands into action. Participants will create an investment strategy in different markets around the world. We will discuss how to successfully sell our investment plans to investors and identify our main difficulties in advance to be able to turn them in our favor.

On Day 2 we will compare different types of international markets in order to understand their different fundamentals.

• The US market, a mature market with a growing population and a transparent economy;
• The European market, a mature market with a shrinking population and a much more rigid structure;
• Asia Pacific market, contrasting China with Japan;
• Emerging markets, such as Latin America, immature markets with big potential for development in the near future but big risks.

We will discuss the specific externalities that affect each of these different markets and the specific risks we will face: Market transparency and corruption; Governmental intervention; The problems of inflation; Currency exchange risks; Political and economic risks; Interest Rates fluctuations; Standard of living; Unemployment Rate; Population Growth; and Affordability Index.

During the afternoon, we will discuss “How to Negotiate International Deals.”

• What are the different tactics and strategies that would lead us to successful negotiations?
• What are our most common mistakes?
• Understanding the other part position and BATNA and taking advantage of this.
• Which are the differences when we negotiate cross-border deal?

On Day 3 we will work with a financial model determining the right “pricing” for your investment, especially in situations where the investment involves ground up developments. Students will receive a copy of this financial model in Excel for future reference and use and will learn how to easily evaluate a project using HP 12 C.

• Participants will learn how to protect their investments from those risks while discussing: currency hedging; leverage; cross border portfolio; and the most efficient investment structures.
• Understand how to create a successful real estate investment strategic plan in international markets;
• Learn the theory behind the real estate cycle in order to anticipate its behavior and make rational investment decisions;
• Understand the different external factors that can affect real estate investments around the world;
• Learn negotiations skills that will help close good international deals;
• Use financial modeling to establish the right pricing for investments.