Would you consider college to be essential when going into a field such as real estate?
Crete, IL · Member since 2013 · 13 posts · 1 vote
Would you consider college to be essential when going into a field such as real estate?
College education has absolutely no bearing on being a successful Real Estate agent or investor. Education is essential, but not from college classes. Don't waste the money.
I know some very successful agents and investors that have never stepped foot on a college campus, and some very highly educated failures. If you have a thirst for knowledge, have a strong desire, good work ethic, and know that you will and should always be learning, you will make it.
Oh, btw, I hold a masters degree.
Education and Experience Are Critical to Success
The real estate profession is extremely complex with many intertwining segments.
Because of the complexities of the real estate business and the need to be more competitive by knowing more, education is critical to enduring success in any business - especially in real estate.
-How well do you know basic business fundamentals? Can you write a business plan?
-How well do you know the laws that you must follow?
-How well do you know the governmental procedures and requirements?
-How well do you know accounting and other basic business fundamentals?
-Have you met with licensed professionals to plan your business and future (attorneys and financial planners)?
Being the best prepared and informed will help to make your real estate ventures easier and more profitable. It can also help you to have an enduring successful future.
@Tom Goans Thanks so much for the response, & I have been writing my business plan for the past year and reading up on alot of information. & I think I know the fundamentals of business, appeal to people. Make people want to live in your properties, make your property stand out or make the property so appealing that people wont walk away from. I maybe wrong but I feel as if its all about Appealing to people. Supply what is in demand with a little extra just to get a good recommendation. Buy for less, and invest to sell for more. you have to spend money to make money right?
I am unaware of laws that I must follow when entering the league of Real Estate, completely unaware and I thank you for bringing that to my attention. I will make sure that the next thing I do extensive research on.
I don't know about accounting, but I'm GREAT with numbers. I've always been good at math and catching on to little details that don't seem right. I've always kept up with expense and my profit, I'm guessing when I start investing it will be on a larger and more stressful scale.
& No i have not met with any license professionals, BUT I am currently working on an letter of apprenticeship to send out to various real estate investors.
May I ask, how long did you attend school and what did you attend school for? Did you make any other investment other than properties?
I think the education you get when you get experience is the best. I have a BS in Business Administration, but everything I know, I learned on the job. I've worked in many different fields, but I've learned from every place that helps me with real estate. Managing a veterinary clinic taught me basic accounting and customer service. Working as an office assistant to a landscaper taught me how contractors work. Working for a beer wholesaler taught me discipline (no, not how to stay away from the inventory!).
You can learn many things working for different companies. Going to a 4 year school is not the answer to everything. Maybe going to a community 2 year program for some accounting classes. Real estate school in Wisconsin or Minnesota didn't teach me anything about business. Nor did my broker. When you are ready, a good accountant who is willing to explain things can be invaluable for you to learn from.
Just my experience. You will learn alot from a mentor or investor if you can find one willing to take you on.
The fact is, the better educated you are the more you will make, statistically speaking. Being able to perform complex math formulas won't mean you'll understand accounting, that's pretty much basic math.
As I keep saying, RE is a social people business. The better your social skills the better you'll be in RE. Takes money for RE. Those that have more money are better educated but there are exceptions. Gotta say, all my big deals in any area were all with well educated persons. They listen to others like themselves, they rarely take advice from those who have less knowledge than they do (in their field) birds of a feather stick together type of thing.
Knowledge is not a formal education, however, you can't just talk RE 100% of the time, at some point you'll have general conversations. Your ability to speak, write, express ideas, formulate a process and apply logic comes from formal educational studies which will show through to others. You don't need a college degree to do a deal, you need to be educated to meet and get to know others, to really network with those with money.
Missouri, like other states is or in the process of requiring a 4 year degree for anyone to obtain a RE license. That's an indication of where the industry is going, it is more complex than it was 50 years ago or even 10 years ago. You'll need to keep up. :)
I grew up in Germany and didn't go to collegel. Didn't hold me back.
You can take all the courses in the world and if you don't have the right temperament that you need to pull the trigger on a deal, then those courses won't matter.
I've learned more by doing than I could have ever learned in school. My biggest lessons could have never been conveyed that way.
I believe that specialized real estate classes and seminars at your local REIA can teach you more in this field than college can.
I'm not suggesting for you to blow off college, as you don't know if real estate is really for you. But don't use it as a delay technique for not starting REI now. It's so easy to say : well, once I'm done with this and that......... .
College education might not teach exactly what you need to know for job, career or real estate, but it provides you the key to get to the door. As Bill mentioned, it does provide the platform for you to run further. It values more in the first few years of your career, since that's your " track record" that you are persistent to complete 4 year project. Lol
Once you are inside of the door, you set up new track records on your actual work, that's when the college education matters less or depreciate....:)
College education has absolutely no bearing on being a successful Real Estate agent or investor. Education is essential, but not from college classes. Don't waste the money.
I know some very successful agents and investors that have never stepped foot on a college campus, and some very highly educated failures. If you have a thirst for knowledge, have a strong desire, good work ethic, and know that you will and should always be learning, you will make it.
Oh, btw, I hold a masters degree.
I agree with @Jesse Rivera , college is not essential. Nothing I learned from college am I applying it to my REI today, with exception of few math classes. I've learned more from real estate investment books and biggerpockets.com than college. Having said that, I would absolutely, 100%, guarantee go back to college again. BEST TIME OF MY LIFE.
College is not essential & may actually hinder you if you aren't careful. I actually like Michaela's plan to a certain degree if you know for sure your passion is in real estate. College presents a wonderful opportunity to learn the fundamentals of business as well as getting exposure to other disciplines. Where you can get tripped if you aren't careful, is that you may lose street smarts. Universities (with a few exceptions) are geared toward creating skilled employees for corporations. There is a benefit in having more widely accepted marketable skills, but the skills needed in real estate are not necessarily only obtainable at a 4-year institution.
Having said all that, I do have a Bachelors degree in Business Administration, with a concentration in Real Estate. There wasn't one class I took at the University where I could say confidently, this class directly taught me how to make serious money. Learning about foreclosures, buying defaulted debt, how to negotiate, structuring contracts, understanding title, seller financing, managing property & tenants, those skills make me money. The research project I did analyzing the business & marketing plan for Coca Cola or determining the stock value for Campbell's Soup based hasn't paid huge dividends.
So here's my advice to you if you were my child. If you choose to go to college...
1) Avoid student debt that is way out of balance with the earning power of the education you receive. (Don't get buried with debt that could choke a horse by going to an out of state private school, If your passion is to teach elementary school, there are more economical ways to get your degree to make that happen.)
2) Explore new things to find something you are passionate about.
3) Observe & learn what drives human behavior
4) Learn how to use a Financial Calculator & understand how powerful a tool it is in your financial life.
5) Build & maintain good habits
6) Develop great relationships, surround yourself with trustworthy, hardworking, honest, & passionate people.
7) Develop a thirst for knowledge & never stop learning.
@Ellis San Jose makes many great points, above. If you're not passionate about law or medicine (a field that will warrant a large annual income) then it doesn't make sense to spend a ton of money on school. Even then, it would be wise to plan ahead how to quickly pay off student debt. I could never understand why young people who are supposed to be starting off their adult life found it wise to go into a bunch of debt when there's no guarantee of work or no strong drive or calling. Seems like a bad start.
I was fortunate to have parents who paid for my 4 year degree (took a little longer than that, ahem). But, I didn't really have much interest in attending or know what I wanted to do AND had the skills for. I grew up as an only child. The best I thing I learned in college was how to share a room.
I would also agree that some basic accounting classes could be very beneficial as well as the basic real estate agent class (to help with some lingo). But, investor networking and inexpensive weekend classes with highly regarded active investors (who come recommended by other veteran investors) will yield a better return on your time and educational investment, in my opinion.
Joining an apartment owners' association which advocates for and assists landlords has also been helpful to me.
P.S. I hated math growing up (still struggle). But, once I learned the "magic" of money and how to use a financial calculator, my whole perspective shifted. It's money, not math! I like money.
I think college taught me two important lessons:
1. How to do research and complete task or goals.
2. How to be responsible with my time.
I went to college for a year and a half before I left for staying in a manufacturing position. I got into maintenance and am now a jouneyman millwright. That did require 4 years of trade school (8 hours a day, every other week during the school year) and 8,000 of training.
I would have rather used the money I spent on college for real estate looking back. I always tell teens that college isn't neccessary but if you want to be successful you must work harder. That piece of paper tells the world you accomplished something, people will then judge whether that means anything. I have found success working hard and studying hard to be a life long learner. If you lack certain skills or can't find a better way you can always go take a class to gain the knowledge but do not necessarily need to get a degree. I always tell teens to take accounting classes. If you can understand how money operates then you can run any type of business that you want from lawn mowing to real estate. You must be aware of want you need to know to be successful in a field and that does take work. Nobody wants to holds someone's hand all the time so take the initiative to learn what you need to know and do what it takes to then acquire that knowledge.
My Education
Since graduating high school, I have hundreds of classroom hours with a primary focus on law, business law, real estate law, and tax law. My education also includes many hours of finance practice and law.
Over the years, I have constantly continued my education by attending seminars, reading books, and listening to hundreds of hours of audio tapes. Even after all these years of personal experience and education, I continue to read approximately 2 hours or more a day to continue to educate and evolve.
Moreover, I have spent many hours reading actual state statutory laws and federal laws.
Probably most importantly, I have spent many hours with numerous mentors, very experienced and seasoned mentors that are my father’s age or older. Several have been partners in some of my real estate and business ventures. The lessons learned and tips provided are a tremendous addition to the other forms of education.
I grew up in the real estate business and lived on a family owned and developed mountain resort. Both my grandfather and father were in the business. Even with this background, my father insisted I obtain a formal education
I now have almost 50 years of personal experience that spans many segments of the real estate, finance, and business professions with many different sizes of projects, including a year-round ski resort.
This much education is not a requirement to be successful. However, it does make it easier and more enduring.
Personal note: I am not in business for a fast buck. My goals are long-term and so is each project/investment.
It appears that those with a formal education are missing the point of the intrinsic values they have acquired without giving due credit to a few of the aspects I mentioned.
I can see that someday, anyone holding X number of rental properties will be required to hold a license. My guess is that old properties would be grandfathered, acquiring new properties would not. I could also see requirements for that license similar to that for Realtors, which could be a 4 year degree in something. I can also see continued education required.
Place your bets! It could happen!
40 years ago any hillbilly could broker mortgages, even 15 years ago, no more, it's changed.
States require all kinds of professions to be bonded, the insurance companies determine the risks, they can require education and experience.
Food for thought, :)
@Lauren Lucas there are many ways to be successful and the way for you isn't going to be the same as for someone else.
If by college you are referring to higher education and you are saying not necessarily a degree that is one thing, but saying you need a degree is something else. My opinion is learning is important. Business accounting has served me well and has set me apart from most who are unable to understand financials. Higher math has been cool too but not everyone can go that route.
Business math is a basic requirement almost to be able to function in today's society. This can be done in high school (I think).
There is no replacing hustle. I have a plumber that is doing very well in his business plus he is a general contractor and owns quite a bit of property. I'll put my money with this guy as opposed to someone with a degree that is working at a mid-level management job.
Great topic!
I think the best way is to either go to community college and then undergraduate in finance and econ a state school. The objective is to get out as close to debt free as possible.
Other pricey alternatives but GREAT non college alternatives are the CCIM education track and ULI development education. In Fact if your bachelors degree is not important to you the CCIM track after college algebra would be a solid math foundation.
First off, don't confuse intelligence with education. Of course everyone needs to know how to communicate, write, do math and have social graces. However; our educational system (at least in California) isn't necessarily about teaching the students, as much as it is about the unions. There are more students wanting into areas like the medical field, and engineering than there are classes for them to take, meaning a backlog of up to 5 years for some programs, yet we are importing nurses from the Philippines, and Engineers from India! Why? Because their colleges are not run by the unions that limit the number of classes that can be taught in any given subject etc., allowing them to get a good, but timely education. However; there are some really good private colleges with classes on line. But, back to your questions...
Take action. Call some of the most successful brokerages in your area, and ask if they are hiring new agents. If so, ask if they have a training program. If they do, see if you can meet with them to discuss it. If you aren't interested in being an agent, then, find out if there's a local real estate school, and go take a class. If there's not, there are schools online, such as Allied and Kaplan that have Real Estate Principles.
R.E. Principles gives you a good overall view of the process of real estate. Various ways to hold title, the escrow process (all states are different) financing, appraisal, ethics, environmental laws, discrimination, etc.
The point is, there are MANY ways to get your education, a degree isn't necessary, knowledge is. Good luck.
College is definitely not essential for success in real estate. However, while I'm not normally an advocate of traditional routes, I do recommend going to college even if you do want to just do real estate for 3 main reasons:
1. A fallback. In case you end up hating real estate (you never know) or getting out of it or something, at least you have a degree to help you get other work. Plus (assuming you are college age), get college out of the way now because going back is always hard.
2. You will learn a ton of useful skills in college! While maybe not real estate specific, all skills that will help in real estate. How to be resourceful, how to think critically, problem solve, latest technology, etc.
3. Everyone should go through the college social experience! You learn a lot about yourself, about other people, about relationships, you make killer friends, you get your partying out now rather than when your 40 (because that's always awkward).
Work on real estate while you're in college! That's my recommendation.
I think college is helpful, especially if you have studied business or marketing, but far from essential. Learning is essential, but if you are a self-motivated, entrepreneurial type, you can seek out the information you need. Surround yourself with good, capable people, ask their advice, and read everything you can get your hands on. Good luck!
It is helpful, but by no means necessary. If real estate is your passion, I'd think jobs in certain inducstries would be more helpful than a college degree. I've got a master's of science. Writing for publication and researching, writing and defending a thesis were good experiences. Learning how to write and present things professionally are skills that have served me well. I majored in Civil Engineering. I still remember things I learned in the soils, structures, concrete, pavement engineering and water resources courses. After all the schooling I saw that IT paid much better than civil engineering and became a software consultant. The exercise of learning how to learn is helpful, but college costs are way out of line with the value delivered today. I'd skip it if what I really wanted to do didn't require it today.
Unlike most here and pretty much anywhere else I think college hurts more than helps. The only people who should attend college are doctors, nurses, and professions where a particular degree is required to start.
Most majors are a complete waste of time and money. First about 50% of students drop out before graduating. Then those that do graduate often work in jobs where there degree is completely unnecessary.
Here is a video I saw earlier this year about this exact subject.
What useful skills does college really provide? Little of what I learned in college is useful. I believe this to be true for most people. College leaves most students with a pile of debt ($35,000 on average) and the lack of any real skills to succeed.
Though I am frustrated with the current state of our educational system, as I think they've moved away from providing good educations and into social engineering, there is value to education, and I've never known anyone with a degree of any type that would say it has hurt them. The fact of the matter is, a degree sometimes opens doors and gives credibility, to those that otherwise might not get it.
However; the original poster asked if college was "essential", and the obvious answer is no, it isn't.
College study is an added advantage in all walks of life. Because it provides the basic knowledge on so-many subjects and or experiencing the students to mould for something. After a basic college study, we can continue on study and experience on any special subjects just like engineering, medical field, business field and so on. While speaking about the business, then we can choose a particular industry and definitely the Real-Estate is one of the fields in business.
Individually speaking, just to do a real-estate sale, is not in need of the college study. However, the college studies helps to improve the ability to do the sale more perfectly.
I for one think that you're foolish if you forgo college in the hopes of making it big in real estate. You'll be at a competitive disadvantage to those with the education for many of the reasons already stated. One of the big disadvantages will be when you're trying to raise capital to grow. Investors generally want to fund operations with people that are educated and will be good stewards with their capital.
College courses will also give you a basic set of skills to draw from. Sure, you'll need to get out in the real world and actually learn how things work. This is much easier to do if you're drawing from a good frame of reference. Earning a nice salary will also help you kick start your business.
There are no one-size-fits-all ingredients for success, but in my opinion the path of a higher probability of being successful is going to college first. Almost all of the successful investors I know in Austin have college training and many have multiple degrees.