To MBA, or not to MBA?

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To MBA, or not to MBA?

Christopher Christian
Accountant · Dallas, TX · Member since 2017 · 27 posts · 7 votes

Hello!

I have been driving myself crazy trying to determine whether or not I should go the MBA route, so I'm hoping to tap into the wisdom of the BP community to help with this huge decision.  I'm considering Rutgers Business School in NJ, which is the #3 rated MBA program in the NYC metro behind NYU and Columbia. Average starting salary for graduates is right at $100K, and upwards of 90% of graduates obtain employment within 3 months of graduation. The cost of the program is $60K.

A little about me:

-38 years old (would finish the program at 41)

-I currently work in corporate finance at a large media company with 2 years of experience in the department. I have been with the company for 10 years but worked in operations then account management for the first 8. Basically, I have 2 years of corporate finance experience in media.

-Current salary: $60K-$70K range (I live in the NYC metro, so this doesn't go very far.)

-My ultimate goal is to build a real estate portfolio to help me reach financial independence, but I currently own zero properties. Again, living is expensive out here!

Why I'm Considering an MBA:

-To increase my income to have more money to invest in real estate (I have already cut spending about as much as I can). 

-To (hopefully)  land a job in acquisitions at a large real estate firm (ex. Marcus & Millichap) to develop a deeper understanding of commercial real estate and to expand my network in the industry. I also hope to work in an industry I am passionate about.

-I love learning new skills

Concerns:

-That the $60K in student loans I would take out will be detrimental to obtaining financing for my own real estate acquisitions.

-That I may be able to make the career change without an MBA by teaching myself the necessary skills and by networking. I don't know how realistic this is, however

Ok. That's it in a nutshell. What do you think?

Thanks!  

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Chris Jensen
Rental Property Investor · Bettendorf, IA · Member since 2017 · 187 posts · 256 votes
7y
@Christopher Christian You’re not going to find a lot of support for an MBA on BiggerPockets. In fact, many will discourage even a bachelor degree, in favor of just diving directly into real estate. I happen to have both degrees, and definitely see pros and cons. As has been stated, the two largest cons are the money and time it would take to obtain the MBA and then pay off the debt. I happen to be very supportive of continuing education, but there’s no guarantee for the returns that the average statistics portray. And for me, the debt load would be the biggest challenge, tying up precious capital and borrowing capacity for a long time. I wonder if you could either get a job, or otherwise just get involved somehow, in the real estate industry in a capacity that would give you the kind of continuing education you’re seeking, that would set you up to venture out on your own. Just some thoughts to consider. - Chris
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  • Javier Osorio
    Member since 2020 · 2 posts · 0 votes
    6y

    Hi Christopher, have you decided what path to follow since you asked the question?

    I can relate very well as I have been working in FP&A for several years and have been considering doing an MBA, however I plan on acquiring RE before that, and if I do decide to study, it would be part-time.

    Another advise that could apply regardless of whether you get or not your MBA is aquiring other skills that are highly valued if you work in financial analysis. If your are not already, become an expert in excel and know how to do financial modeling well. Learn to use macros and power bi. All of these can be achieved at little or no cost, other than the time you put in.

    0Reply
  • Javier Osorio
    Member since 2020 · 2 posts · 0 votes
    6y

    Hi Christopher, have you decided what path to follow since you asked the question?

    I can relate very well as I have been working in FP&A for several years and have been considering doing an MBA, however I plan on acquiring RE before that, and if I do decide to study, it would be part-time.

    Another advise that could apply regardless of whether you get or not your MBA is aquiring other skills that are highly valued if you work in financial analysis. If your are not already, become an expert in excel and know how to do financial modeling well. Learn to use macros and power bi. All of these can be achieved at little or no cost, other than the time you put in.

    0Reply
  • Christopher Christian
    OP
    Accountant · Dallas, TX · Member since 2017 · 27 posts · 7 votes
    6y

    @Javier Osorio I actually decided against the MBA as many people who posted advised. The more I thought about it, the harder it was to justify the cost. I also realized there was no guarantee an MBA would land me a job in a new industry. I did, however, end up doing a real estate investment program at NYU School of Professional Studies where I made some great connections and learned quite a bit along the way. 

    Thanks for the advice regarding FP&A. I'm a pretty strong Excel user and have done quite a bit of modelling. I still need to learn macros, though. 

    Best of luck!

    0Reply
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