Investor · Houma, LA · Member since 2014 · 162 posts · 40 votes
Hello everyone. Going to get right to the point here...
I'm 17 years old, will be a senior in highschool this year, and college is creeping up fast. There's no doubt REI is the path I am taking and several seasoned investors told me a college degree isn't exactly necessary. I know college is good but seems irrelevant. I'm going to get my brokers license once I turn 18. My parents demand (won't take no for an answer, I've tried) that I go to college. My parents don't have the money to put me through college, so I have to pay my own way using whatever J-O-B *tear* that I have. I was planning on using that money to get deeper into REI instead of using it for college. So my question is, is there any "degree" for real estate? Is there any classes I can take to recieve a legit diploma along the lines of real estate? I'm not talking about just classes, courses, guru classes, I'm talking about a legit college completion certificate. If not, what would be my best course of study? What should I major in? Etc...Any advice would be VERY helpful. Thank you.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Damon - One aspect that you really can't plan in are your personal growth and maturing during your late teens and early twenties. At 19 I saw the bright light and changed college majors from pre-med to business. After a twenty minute conversation with an acquaintance helped reveal to me my true calling I changed majors and never looked back.
An accounting professor became a close friend and guided me towards real estate. He owned several blocks of apartments near campus and did not need to teach.
At 21 my Dad died, during my fourth year of school. It was at this point that i knew i had to do a lot of growing up...in a hurry.
I had been buying and selling sports cars as a side income when my godfather suggested I take a weekend seminar on how to buy foreclosures. Much like fixing up cars, he said.
I got the "bug" and it has been part of my DNA ever since. That was 1978.
Mount Vernon, WA · Member since 2012 · 52 posts · 22 votes
12y
RE is a business. In any business you need cash flow, regardless of what it is. If you don't have sufficient cash flow to weather the lows and the bumps, you will go out of business. If college will increase the NET income you have to invest at the end of the month into RE, go for it. If not, then skip it. I have a BS in ELEC ENG, and an MBA. They dont help with RE at all, but they do help with my day job to make money to invest.
Investor · Chicago, IL · Member since 2010 · 76 posts · 55 votes
12y
You need to figure out, do you read a lot of books in areas you are interested in, and easily teach yourself; or do you find learning in a classroom easier?
College is an enormous financial investment. Colleges have differing costs, based on the brand name of the college. The better the brand name, the higher the cost. College is also an insurance policy. If REI doesn't work out, a good college degree will open other doors.
Very few people use what they learnt in college in their day-to-day job. However, many people got their jobs due to having the degree. You will learn far more in REI by joining local clubs, and assisting / learning from successful investors. However being entrepreneurial is risky, and may not work out.
If you decide to go to college, I wouldn't study real estate. I think you get more value studying another area you are interested in, which will give you a backup plan, and then study/work in REI in your own time.
I wonder the proportion of successful BiggerPockets investors (ie, made $1 million+ in real estate) studied real estate in college?
My parents don't have any FHA loans out. I know we have a mortgage one 3 vehicles, a house, and a boat. As far as profit sharing with my parents, that was never a concern, but now it is. However, whatever profit they do get (if they get any), they'll just give it to me anyway. Not sure exactly what I'm going to go for (as in I don't know the correct term), but I know what types of classes I want to take. Basically all the ones stated in this forum, you guys basically covered it all for me. Thank you.
I don't have an older business partner (yet), but when I do start doing real deals I'll make sure to bring someone along just for that credibility. I won't bring anyone who is "green as could be" like the guy in @Bob E. 's story did. I'll probably be working with a few guys by that time (who have some experience) and hopefully they won't mind tagging along for a negotiation or two. It's actually a great idea. Thanks to both of you.
That opened my eyes. The "either/or" limits my options, and the "how can I do both" gives me more than one option. Hopefully, before college I can get my RE sales license and go to school for everything mentioned in this forum. So I think having a degree, and license young will give me credibility, and knowledge. The side work will give me experience and knowledge, which both lead to credibility. Will still have that age obstacle but like the other guys said, having an older guy tag along may minimize that obstacle. My parents won't be able to do squat for me, so it's important I have that license to pull in a fair income while in college. Thanks.
I've learned many places offer a degree in real estate. And they all do about the same thing, give you what you need to know for the exam. I can pass the exam without having a degree in real estate, so if I'm going for a degree I need to make it worth my time (business/financing/entrepreneurship focus).
I'd like to start out with my own transactions, and use my knowledge + experience + money to build a hands-off real estate investing business. I didn't know their were classes for learning how to automate a business, so that would be great to know. I also never thought about real estate not working because of the market. I just assumed if it doesn't work it's because I'm not doing something right, so that's a great point. I would take those classes as a concentration, not independent from my degree. I have no desire in anything other than business (which includes everything you mentioned, finances, business laws etc.). I really want to look into those courses that teach business automation also now. Thank you.
Your the third Adam in a row....lol. I learn both ways. I'll get a degree in something that gives me a back up plan, and still helps with real restate investing. Not sure if you read everything, but college won't ONLY be beneficial for a back-up plan, but networking, too.
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
12y
It is my deal so I decide the split. Mostly it is 50/50 of the net (after we both recover our expenses). No reason to create any animosity between myself and someone out there getting the deal done so we can both get paid.
Well just another 17-year old going into his senior year and wondering about his future academics/career dropping in here. I didn't know how many of us frequented this site! How amusing. Anyway;
I'm pretty much in the same boat here. The day I turn 18 (yes I'm counting down to) I plan on taking the real estate salesperson exam and then working at a local brokerage for a bit to build up some cash. I'm trying to line up an internship right now with my (potential) future employer and hoping that'll teach me a bit about the business.
On the point of academics... I've also searched far and wide for a "real estate degree". I don't know much about Louisiana, but there are a couple of colleges up in the Northeast that offer real estate degrees. University of Connecticut offers one. University of Pennsylvania's famous Wharton School offers a real estate concentration for the Bachelor's of Science major they hand out. There are probably several others up here in the northeast, but I'm not aware of them.
On the same train of thought as academics, have you considered taking a gap year before going to college? It'd give you a bit more time to work as a broker and then possibly move into investing before you start college. I've spoken with seven different admissions officers about gap years and I have not yet heard one say it'd be a negative factor of admission (unless of course you waste your time playing video games or what not) and oftentimes, its a positive factor if you do something extremely productive. Just something to think about... don't know what your parents would say to it, but worth a shot?
That's all I have in my spiel for now, but I'd be interested to here how things go!
Yeah, I thought about a gap year. I want to get settled into whatever I buy and try to save up some money so I don't have to work (as much) while in school. I'm not looking to get a degree in real estate anymore. I am going to get a degree in something else that would HELP with real estate. Read J Scott's post and that'll explain why. Real estate degree limits me to working in real estate, a different degree gives me a back up plan AND helps with real estate. Also, like one of the other guys said, a degree in something else may really help out with potential partners, lenders, etc. Great to see you on here. Love talking to you guys to compare myself too. Sometimes I don't feel so behind. I feel right on track. Thanks to you @Account Closed
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Damon - One aspect that you really can't plan in are your personal growth and maturing during your late teens and early twenties. At 19 I saw the bright light and changed college majors from pre-med to business. After a twenty minute conversation with an acquaintance helped reveal to me my true calling I changed majors and never looked back.
An accounting professor became a close friend and guided me towards real estate. He owned several blocks of apartments near campus and did not need to teach.
At 21 my Dad died, during my fourth year of school. It was at this point that i knew i had to do a lot of growing up...in a hurry.
I had been buying and selling sports cars as a side income when my godfather suggested I take a weekend seminar on how to buy foreclosures. Much like fixing up cars, he said.
I got the "bug" and it has been part of my DNA ever since. That was 1978.
Bear, DE · Member since 2014 · 178 posts · 65 votes
12y
Damon,
College is not for everyone and the degree you study is not always worth going but I believe that when it comes to real estate, a degree can be a great asset. You never go wrong with Business and financing degrees. If a person doesn't go to college it's not a deal breaker but education is a solid foundation. Take for instance, the University Of Pennsylvania has a degree from their Wharton School of Business with a concentration in Real Estate. Well worth the money and you have a high chance of recovering the investment in education cost between the education and contacts that graduated from UPenn (example Donald Trump etc). This can help when you need to raise capital for a project. Also consider that at some universities the courses are being taught by experts in the field so your learning from people that worked in the real estate industry.
In most states, you have to be a real estate salesperson for the 5 years - commission based but well worth it. If you allow me to make a suggestion. Attend college but get your real estate license, you'll learn a lot in the classes alone (real estate law reading of contracts etc), then you get real world experience under other seasoned professionals, plus you can work selling real estate part time while attending classes. If you do well, that will cover tuition. Also, if you stay active for 5 years - you be a broker by the time your 23. You also can benefit from the sales and investor side of real estate as a real estate professional.
Real Estate Investor · Troutdale, OR · Member since 2013 · 92 posts · 22 votes
12y
Hey, Damon. If your wanting my own opinion on the matter? I think there are several possible scenarios. First off, you said your primary issue is your parents forcing you to go to college, right? Well the way i see it since they aren't paying they don't have much room to complain. The first thing i would try to do is convince them of your investment strategy, show them how your thinking, and see if they will loosen the reigns a little. Maybe you could force them into a compromise? For instance you put off college for a year and if you start making money at investing they back off, but if you aren't you agree to go to college? If they get too picky, however, you can just lay down the law, and this is coming from a 16 year old! My point here is that in the long run you are not your parents and if you want to take a different path its your right to do so. Now i would be diplomatic about how you go about it because they are still your parents and they can make life for you a living hell, but the point still stands.
The second topic would be that of becoming a real estate agent. Now i think becoming a real estate agent is a great idea because you learn the market, have access to materials that no one else does, and if you do it right can make a pretty penny while your doing so. Realtor's typically get, on average, a 1% commission on the value of the house, give or take, and this can add up to a lot if your doing several deals a month. I've heard that the good Realtor's can make upwards of 200k per year, and it takes no genius to invest 200k. This could also be a potential negotiating point for your parents, since it does require some college hours and is thought of as an actual career. And if you do choose to go to college, being a real estate agent could still work out as they typically work off hours. Think about it, most home buyers work 9-5's on week days so they are going to want to do their shopping on weekends or on off hours.
Finally, if you do decide to go to college i would suggest finance/business. Another alternative to your college route could be that you go part time? There are plenty of these options available for people with jobs or kids or whatever, so you could take advantage of it and chip away at that degree but still devote the majority of your time to your investments.
Okay, done ranting for the time being, but I've put a lot of thought and research into this and i hope that its coming across. I'm counting down till the day i turn 18, as the hoops i have to jump through being a minor is unbelievable. I don't even turn 17 till December. Ugh. Well let me know if you have any more questions.
Shanghai, Shanghai · Member since 2014 · 7 posts · 1 vote
12y
Florida Int'l University provides a Bachelor in business administration for many majors including real estate. My girlfriend wanted to do management, however now she's considering taking real estate . FIU's program is one of the best in the US.
Rental Property Investor · Dallas, Texas (TX) · Member since 2014 · 79 posts · 25 votes
12y
Kudos to you, Damon. You are on the right track and have a great start by being a member here.
My personal opinion on the matter:
- Go to college it will teach you technical/intellectual skills that you just won't have out of high school. Not only that but you will develop important social skills.
- Go for a financial degree, you can even focus on real estate in certain majors, easy enough to research on university websites. I agree wholeheartedly with @Mark D.
- I am sure that many people don't believe in the 9-5 but honestly there are a lot of benefits to having stable job that covers basic living expenses. It also gives you additional skills and experience. Combine that with a good credit score and loans are also easier to obtain.
- I personally don't believe that all debt is bad debt (ie college loans, mortgage). However, owing someone money isn't a great feeling. There are ways around paying a ton for college like state schools and the military (I did both). Not to mention scholarships and grants. Weigh your options, there are many. I have a degree and am out of debt completely by 27, not a bad place to be.
- Like all things in life this only works if you participate and put yourself out there (kinda like here!)
Thank you, like I said my main question was whether I should spend money on real estate, or college. But I know I'm going to go now, I just wanted to make sure that would be a smart avenue for a real estate investor. I'm definitely going to go along the lines of financing and business and try to have a gap year inbetween high school and college to save up a little, and attempt to purchase that duplex or triplex near the school. My only worry is that I won't qualify. We'll see, We'll see!
@Damon Armstrong I have read the majority of the advise on this post and agree with many of them especially those who recommend you study finance & accounting. Anyway here is my advise and you can take it for what ever it's worth to you. If you are in somewayable to go to college even if it's a community college and study finance & accounting do it.
You can also do real estate while attending college. You are very young and will be able to create & build a very successful real estate investing career/business when you have some skill to help you along the way. One of the best skills for real estate investing is understanding finance & accounting.
Why do I say this? I went to college switch my major from pre-med to financing & accounting. I did not know the reason at the time but I thought well it the closes thing to numbers. Today after some 20 years as a commercial real estate broker and now investor for the past 2 years it was the best decision I made. Having that understanding in finance & accounting I was able not only help my clients in the past understand the numbers behind the deal, it has help me see behind the number when analyzing property whether multifamily or single family.
With an understanding of finance & accounting you can analyze the deal from many directions or back into the number to make you are buying the right property. Believe me this is a blessing. I have save my client and myself from buying deal that look so good on paper until I analyze it.
As a broker I witness so many Realtors making so many mistake because they did not understand finance and having their client buy property that was way over price.
Also consider this when you become very successful and I have no thought that you will, you will need someone to do your financing & accounting for your business. Having that knowledge will you understand your income & financial statement much better. You will know whats going on in your business financially and it will take you less time to do so.
I wish you all the best and be FEARLESS WITH YOU DREAM(S)!
Greensboro, NC · Member since 2014 · 212 posts · 143 votes
11y
@Damon Armstrong I did not read everyone's responses so my .02 may have already been said.
You are young and have a great opportunity in front of you. You should strongly consider going to college, but study something that interests you and will benefit your RE endeavors - finance, accounting, marketing, management, architecture, project management, any of the engineering fields, construction technology, construction management and yes, you can find some real estate degrees out there.
You can learn the business further by working for brokers, rehabbers, etc while you are in school.
Investor · Houma, LA · Member since 2014 · 162 posts · 40 votes
11y
@Derek B. Thank you, I'll be starting college August 2015 and will be studying business possibly with a concentration in entrepreneurship. Still not totally sure but definitely leaning that way, and though there are real estate degrees, I prefer a degree that will help me in all aspects of entrepreneurship vs only real estate. I am beginning classes for my real estate license in May, and by time I'm I start school I plan to take advantage of that license as much as possible to help me connect with people in the industry and learn as much as I can as young as I can.
I'd highly recommend college. It will only add credibility down the road. It can help you with partners, raising money, and in countless other ways. While it may not have classes directly relevant to what your wanting to do it does help develop certain skill sets. Soft skills like communications, ability to follow through on projects....
While a degree certainly isn't a requirement, and isn't going to impress anyone, it can act as a validation "checkbox" in the back of someone's mind when choosing to do business with you.
I went to a good school which happened to have two year masters in real estate program and took a couple classed in it. Found them very interesting and certainly helps you understand alot. If you're looking to get into a more sophisticated job, dealing with commercial, development, ect, it will help and be required.
Not sure where you were planning to go but there a a number of schools with real estate degree programs, some are masters.
Real Estate Broker · Bowie, MD · Member since 2014 · 242 posts · 44 votes
11y
I just received my degree in real estate and economic development and there are a lot of programs now that are genuinely covering the subject (although not as well as BP - truthfully, no bs here). Doing such and working to obtain your real estate salespersons license will please you and your parents. Happy learning!
Contractor · Miami, FL · Member since 2015 · 113 posts · 11 votes
11y
@Damon Armstrong, so by now you probably started college. I read Rich Dad Poor Dad two months after starting college. I wanted to quit after i read it. Too bad i listened to my parents and went to college because they wanted me to. Its very very expensive.plus the only useful classes that i took were a few semesters of accounting and a few semesters of law. Canadian Literature is not helping me at all. never did. yes since i went to a liberal arts university, i had to take a whole bunch of crazy useless classes like Canadian Literature. I ended up majoring in Business management. The business classes i thought were common sense stuff no need to pay thousands of dollars for a class. have you read Kiyasaki's other books? they are great. anyways, thats my two cents on college education. I agree with the other person on here who said that college is good for someone that absolutely needs it to get into a field (Doctors, engineers, biologists, etc). other then that i would reccommend don't go. Going to a community college and then transfering the classes, is a huge money saver. the end peice of paper will ahve the universities name not the community college's name.
As far as getting your RE license, i would say that is helpful but not neccessary. i would say wholesale properties. There are toooo many regulations that brokers have to follow. The other reason that i would say don't bother getting your license is becuase it sounds like you want to be an investor not a broker. no need for any education to invest in RE (i mean degrees that are needed). you need knowledge, but that is received by getting out there and investing. that's my two cents on getting a license. it sounds like you have your mind made up about that too.
I was wondering if commercial real estate brokers get a salary and commission or only commission. it seems imposible to survive on only commission in commercial real estate. perhaps some of the other people on here can enlighten me.
Winter Haven, FL · Member since 2015 · 4 posts · 0 votes
11y
What does a degree do for you? What does it say about you? The answer for the first question as it relates to REI is it provides you the opportunity to learn the general and specialized knowledge that only a degree can. Yes, you can learn REI without a degree but a college education is something that can only add to your arsenal of knowledge. As for the second question, a degree conveys two messages...you can finish what you start, and you can be taught. I say go for it. But ultimately the decision is up to you.
Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
11y
I have a business degree and it certainly doesn't hurt! Many colleges offer a specialization in Entreprenurship now, that could be very beneficial for starting your own business! Even a general business degree will teach you the valuable basics of finance, accounting, marketing, management, etc.
Unfortunately with the information available on the internet most professors teachings are outdated.
Damon, since you mention that math is the subject you like most, I suggest you should major in Computer Technology and minor in Finance. That way you are deep in numbers and computations that will definitely keep you focused. You also said you would consider a "gap" for a year away from college. I joined the military three weeks after graduation when I turned 18. The military paid for my college tuition after I got out. Here's the "kicker": your military benefits provides service members to get a home loan up to 500k with no money down! If you are in the Baton Rouge area for college, just create a post for a mentor in the Baton Rouge area. But, make sure they have done investment deals and not just giving kindly "arm chair quarterback" advice? You should also check out "Computer Coding" that is one of the hottest career fields today while you study Computer Technology.
Real Estate Investor · Phoenix, AZ · Member since 2014 · 44 posts · 18 votes
10y
So, what did you end up doing?
There is a great deal of good advice in this thread. If you can go to school and find ways to apply what you learn great. Some, degrees require you to take certain classes that at the time may seem very far from your ultimate goal. However, that pottery class in your Arts or Humanities or whatever might be something you find you enjoy and may be the thing you find yourself talking about while being relatable to a particular client/seller/buyer. If 2 sisters come to you with great personalities, and a decent few years as nurses, and happen to always wear skirts that come just above the knee and are twins named Ella and Patricia...who knows but you might think of the knee cap and their names and surprise them when you say Pat and Ella (while in your head you're saying patella, pat-ella).
I wish I had taken business and finance courses as many times that lack of education has cost me dearly. You have a great Entrepreneurial Spirit and clear head, educating it and keeping your goals in mind should carry you far.
I'm often skeptical when I hear of how a 16 year old, 14 year old, I've even heard of an 11 year old who "bought and sold real estate..." If you know anything about contract law, you know that part of that story has been omitted.
As for getting your real estate license, do you have 3-6 months income in reserves. I bring this up as I didn't have that and heard it AFTER, I obtained my license in...2007! I had a ER immediately and originally only pursued a license as it was suggested in a REI course I was in. My first commission paycheck was a ways off and it was in an area that at the time stymied many good agents. Back then I would respond to the "statistic" that the "average" agent in 2007 and 2008 made $34,000 annually. I had to correct that because my knee-jerk response was, "...actually the "average" real estate agent makes zero!" Many of the best of the best were struggling and closed shops left and right during these years. Foreclosures, were something in 2007 that no agent wanted to deal with in my office and yet that's what was thrust upon me.
Also, there's this thing called LIFE... It can be changed in a instant. That's something your parents probably no deeply especially as they are nurses. Try not to discount all they have to say regarding planning and education. They surely, helped raise you and you are an outstanding individual, from what we can see.
I didn't see anyone mention the job/commission agent. If you do take off for one year, though I would advise against that...as you need to keep your mind and ambitions a peak performances as good and bad times come- but that's your choice if you live on your own, I suppose.
But, you might join a REIA, you might continue to read, study, and look into birddogging or wholesaling, check your local ordinances on what is and isn't allowed. AND you might look into working for a Newbuilders- where the company pays you hourly to be there 10-7 or so and you get a certain commission on upgrades.
You may also want to look into other forms of income beit from real estate, notes, stocks, internet marketing, storage unit auctions, or what have you.
Be open. And if something puts you into a position of where you decide you'd rather be able to save a life or limb than save a roof, well, go with it. You don't have to do solely, "either/or" but with your drive you may lift and teach many in whatever field you venture into, and we'd be glad to see what you've accomplished.
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
Florida Int'l University provides a Bachelor in business administration for many majors including real estate. My girlfriend wanted to do management, however now she's considering taking real estate . FIU's program is one of the best in the US.
A college degree is a great thing to have, and I am sure their real estate course is informative. It should help someone get a J O B. I wonder if they teach the techniques of creative real estate, acquisitions, portfolio building.
Subjects like:
Hybrid offers
Delayed settlements
Assignments of contract offers
Contract clauses; substitution of collateral, auto extensions, right of first refusal, banking days to settle, prime rate mortgages financing...etc
Vertical Break ups
Front porch clauses
Check Funds
Control and Roll techniques
Principals mortgages
Sandwich leases
Option buy back
These things one can learn in the field and from smart folks here n BP.