Any investors with an MBA? Is it worth it?

Question

Hey guys,

I'm new to the site and I'm currently trying to learn as much as I can with my ultimate goal of being a real estate investors and growing a portfolio. In the mean time I'm also saving as much as I can, although student loans are killer. I'm a couple years out of college and I've been working in a law firm which specializes in landlord tenant law.

I'm thinking of maybe going to graduate school to get an MBA. Although I realize a lot of investors don't necessarily need a graduate degree, I'm wondering if anyone here has an MBA and did a RE program. What are your thoughts on it? Was it worth it for you? Part of my logic is to have a good paying job while investing my W2 money into real estate with the hopes of eventually becoming a full time investor.

Thanks for your thoughts in advance!

Stephen Diakos · Answer

I treated my MBA like any other investment. Of course tuition costs have changed since I did mine but if you spend $50,000 to get the degree, and the degree earns you an extra $10,000 a year, that's a 20% return. Not bad. That being said, if you go to one of these crazy expensive online $100,000+ programs and earn the same $10,000 a year, maybe not so good. Mine ended up paying for itself in 3 or 4 years. All depends on the cost of the program and what you expect to earn when you're done.

Twana Rasoul · Answer

If your employer helps you pay for it then why not, I do have an MBA, but If you are going to spend 50-100k out of pocket for an MBA, maybe you can compare that investment to purchasing a 2-4 unit property to house hack and what that will do for you instead.

Scott Bell · Answer

I am just getting started, so I don't have insight to answer your question but I am applying to Georgetown University for a Masters in Real Estate. My personal idea is that, yes I may be using a little money that I could use for investing, but I will be investing in myself, building a network with another group of people, and most important gaining deeper knowledge of real estate. Warren Buffet bought his first stock at eleven but he still got an MBA. If it worked for Warren Buffet its good enough for me.

Sarah H. · Answer

@Marco Padilla I just finished up my MBA and I am just trying to start out in real estate. I enjoyed the MBA classes and I think it’s a great degree to have for your career, and if your employer can help pay the tuition costs, that’s a great bonus. The cost of obtaining my MBA (and my husband’s MBA - we did it together) has been money we could have used on rental properties, however I feel that it gave us valuable knowledge and tools that will enhance our careers and our real estate investing. I don’t think you need it for real estate investing but it definitely does not hurt. The time and money spent on your MBA could delay you in starting and growing your real estate business, but if it will enhance your career I think it is worth it. Good luck!

Stephen Diakos · Answer

The MBA came before I got into the RE game. I wish I could say it helps but the RE business is quite straightforward and the math isn't difficult. Good overall knowledge to have and something extra in your arsenal but, in my opinion, it's certainly not needed to do very well in this field.

Marco Padilla · Answer

Hey Stephen,

Thanks for the response! That's a really good point that I didn't quite think of in that way. I'd be looking at a top 30 school and they typically range from 30-60K. Ideally, I'd like to stay here in LA so it would be pricey. Although, I think I'd qualify for some scholarships and grants so it could be cheaper.

Did you find that your MBA is quiet helpful in your real estate investing? or maybe even just with getting your foot in the door with major RE companies?

Marco Padilla · Answer

Thanks everyone for the replies. Very insightful with good points. I'm not sure if my job will cover the tuition but I'll definitely be looking into the numbers and decide whether it may be better to invest that month into RE or education. Best regards to all.

Suzy Sevier · Answer

@Marco Padilla If the MBA will actually help you obtain a good paying job, then it seems like it will be worth it to you. The MBA will take time away from you investing if you plan on working a full time job and going to school full or part time. I love having an MBA but I real estate investing was not on my radar when I was working and going to school at the same time. What else do you hope your MBA will help you gain? Is your long term goal to have RE investing take over your W2 job?

Any investors with an MBA? Is it worth it?

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