Have you ever tried to understand the foreign investors?

Lately I have been hearing so many people claiming that in the following months the local Real Estate market will go up again. You know my objections on this, but this is not the point. There are two different categories of investors: The Romanians and the foreigners. Even if the Romanians will be more active this year (allow me not to be so sure about this), the foreigners will definitely not return to the country by thousands, creating the necessary demand which will pump the prices up. Why?

Foreign investors don’t think like Romanians do

Because they do not think like Romanians do. They have different worries, feelings, priorities, options… Some people may curse them for all these and tell them “if this is the way you think, go back to your country, you will not establish your norms to us, we do whatever we want in our country”. But the ones who are able to have a serious discussion about investments and the real progress of this blessed country, should know that foreigners expect completely different things comparing to what Romanians have in mind.

Serious foreign investors have been mixed up with “window shoppers”, crooks and “sex tourists”

There are very few Romanians who have thought about investing abroad and even less who concluded a transaction. This is why there are not a lot of people ready to teach and explain to the others all they passed through before they concluded an investment out of their country. On the contrary there are hundreds of thousands who met foreign investors of all kinds. But there was a confusion, as it usually happens. Serious investors were mixed up with “window shoppers”, crooks and “sex tourists”, so in the end some millions of Romanians (not all) created a kind of wrong impression about everyone.

The perception of foreigners, according to part of Romanian society

Have the Romanians ever tried to understand a foreign investor and his thoughts, worries and fears? Or for most of them everything is simple? “Foreigners come in Romania because we have the best properties. As they will have huge profits anyway” (common perception), “they have to pay a lot to everyone and they should not expect to hear the truth. In the end of the day, they have money, so they should also try to understand the ones who need this money more!”

Sorry to disappoint some of you, but neither this is the reality, nor this is a healthy approach. Even if it worked for some years. (Thank God not everyone here thinks like this. This is what saved the country from the worst possible “word of mouth”)

At least 30% of foreign investors got blocked or lost money

A sad story has happened to a big number, 30% at least, of investors who came in Romania. They wanted something clear, sometimes they were promised a lot. But they ended up being tricked, having lost not only their profits, but also their capital. They were blocked in a wrong investment. They trusted consultants who did not deserve it and they ended up being in trouble. Some of them found a way to solve their problem, using the help of more serious consultants. Some others entered into bigger trouble and today they just wait the market to return.

- Of course everyone is responsible for what he does.

- Of course many investors lost money because they tried to be “smart” or they wanted to trick the others.

- Of course between them you may find a serious number of people who caused problems to Romanians too.

What do foreign investors want?

But if we want Romania to rise again, we need the serious investors to invest here. The ones who come with a plan, implement it by investing and then they expect profits. Sufficient profits which will sustain their decision to come here. These people don’t understand all the “sweet” lies, delays and stories. They want:

• Clear legal framework.
• Clear papers and rules of the game
• Serious people to deal with.
• Owners, consultants, architects, lawyers, accountants (etc) who keep their word.
• Good prices and opportunities. “If it is to buy expensive, I can do it at my home country too, I don’t need to fly till here” they say.
• (Are they wrong? Would you travel to another country so as to buy something more expensive than Romania?)

No one forces anyone else to sell his property at low cost. But if he wants to sell, he should follow today’s market standards. Meanwhile, all the other “factors” of a deal (starting with the Real Estate brokers and consultants until everyone else involved) are expected to respect the investors much more than they did until today.

He has his reasons to be suspicious, prove to him that he is wrong

I have discussed with an endless number of Romanian friends of mine about this issue. With most of them, we end up like this: They stop at the wrong behavior of some foreign “investors” and in their eyes this justifies whatever trouble this foreigner entered into. But the truth is one: We expect from these foreigners to invest THEIR money to Romania. Not vice versa.

You can always remain reserved towards a foreigner, especially if you had bad experience in the past. But try to prove to him that he has no right to see you as his enemy. Show him that he is wrong and you can be his serious, trustworthy collaborator, no matter what your involvement in a deal is. You will be more appreciated than you expect. But if you believe that you are the king and he has to salute you, the game is lost.

Client is the King. Foreign investors are needed in this country and as they should respect Romania, Romanians and the rules of this society, they demand to be respected as well. Is it so difficult?