Work, REI, and school???

Question

I am a full time worker that started learning about REI several months ago and recently I have started locating properties for local investors. I am prioritizing and saving to purchase a property of my own in a couple of months, hopefully in a Sub 2 deal.

I am weighing the option of going back to school for a degree in Finance. Is there anyone who is currently in school for any other course of study that directly relates to their real estate business? Or better yet, is there anyone with a degree that can proudly say that they received a great foundation for entering the real estate biz by going to college?

Alan Brymer · Answer

I had to make the tough decision whether to finish school once I started doing deals while in college.  I think:

1) I would try your best to do what you love and let real estate assist you in doing it--whether your full-time pursuit is real estate investing or an unrelated job or business.  If the degree helps you to do that, then go for it.

2) I think it's smart to have all of your personal income needs met by your full-time pursuit and don't have to rely on real estate to pay the bills (it makes you desperate, which leads to bad decisions).  If your degree helps you to survive comfortably, then I think it's a good thing.

3) I have never heard of anyone saying their degree prepared them for creative real estate investing

4) Most of the math we need to do deals is nowhere near as complex as finance classes.  I think the book Calculator Power is probably as hard as our math ever gets.

Joseph Brooks · Answer

A degree is good if you want to prove your skills to someone that might not be interested solely in your real estate portfolio experience. Constantly learning new things is a good idea, so if you can fit the degree in with minimal risk, might be worthwhile.

Mike C · Answer

Ramon,

I definitely think having a college degree is better than not having one. This is especially true if your RE investing doesnâ€™t pan out, which is highly likely for exactly the reasons Tom K is saying. It makes you much more marketable if you need to rejoin the workforce. Having said that, a college degree is not a direct path to being a real estate investor. A college degree is more geared to those who want to work for someone else their whole lives. There is no class in college that teaches you what you need to know to be successful in pretty much any profession (with rare exception). Knowing some finance is nice but most RE investing calculations are not calculus or high-level math. You could find most formulas online that you need with a little research. You can learn a lot more working for a mentor, doing grunt work and actually working in RE investing.

Hopefully you learn how to think in college and that will be a major benefit. Can you be given a set of data, figure out what is relevant and make a decision you CAN live with? Because that is important as that is all we do as investors. Also consider your competitive position with a degree going forward. Would you hire you with a finance degree as opposed to the just laid off autoworker that has 20 years of line experience? Now fair or not, and no offense to any workers no matter what they do, I think you understand my point. Things are going to be tough for a lot of people over the next few years. And as cold as it may be, that is good for your real estate investing if you know what you are doing.

Finance is probably a better field than most though. Learn to think for yourself. That is a skill you can use, whether you have a degree or not.

Good luck

Mike

Ramon Sobukunola · Answer

I figured if I go back for my Finance degree it would open up more doors with my current employer and it won't stray me away too much from learning REI since it can help me in some areas of the business. I do hope to make REI fulltime but I definitely need a backup plan. 
                        Thanks for the feedback guys..You make some great points. I'm speed walking on a long path to that great thing we call "financial independence".
            
            Nola

Jeffrey K. · Answer

It is not so easy to find a job anymore.  I was listening to a story on NPR yesterday about a woman who has a Phd from Harvard and currently works retail after trying to reenter the workforce after several years of being a mom.  If you feel the degree with be worth it's weight go for it, but if the money and time can be better spent, then it would be advisable to spend it on REI.  If you end up going back to school and can find a job in the field you are studying, take it and invest part time.  Just keep one foot in the door or it might slam behind you.

Ramon Sobukunola · Answer

Tom and Curt..Thanks for your input and advice. We all want to succeed at this and I know nothing is guaranteed. I was mainly concerned about the time school would take away from learning REI but I guess If I really want this I need to find a way to make it all happen.

Matt DuSold · Answer

I am just finishing up school and will be going to grad school next year. I eventually want to be full time REI but what happens if you cant? What happens if someone suits you and god forbid you lose everything? Natural Disaster? The list of bad things possible can go on forever. I will feel comfortable making a switch to full time REI after knowing at any point I will be able to get a job to support me with a higher degree. I would goto school.

Curt Davis · Answer

Ramon,

First I would say to stay in school and get your degree. You never know about the real estate market and what it holds for the future. I have an associates degree in business. I feel it has helped me in some aspects of what I do but I also learned a lot from experience. You should be reading books about real estate investing and also go to your local REIA and talk with other investors who are doing what you want to be doing. Hope this advice helps.

Tom NA · Answer

If the Finance degree can serve you well either in your current or potential future non-RE related jobs, I would always recommend education.  From what I can see, I suspect that 99% of wanna-be "investors" probably never pull the trigger even once so you should always have something to fall back on.  Even if you do end up in RE full time, I think the degree would probably serve you well.