Should I get a Master in Real Estate Development

Question

I have a new found interest in real estate by CouponDropDown">investing and would like to do it full time. I currently live in Arizona but am planning to move home to Utah within the next year. I have done two fix and flip deals over that past 6 months (on the side) and am starting to become a full fledged real estate addict. My concern is that I don't have any real estate connection in Utah as both my investments have been here in Arizona. The University of Utah offers a Master in Real Estate Development program which has recently peaked my interest. I not only want to learn everything I can about this industry but I want to network with as many people as I possibly can, which is one of the aspects of this program that is highly encouraged.

Any insight as to whether a Masters is a good idea or not would be greatly appreciated.

Thanks in advance!

Roger Lin · Answer

Evan is right! Here in D.C. we just had the Capital Challenge competition http://www.naiopmddc.org/displaycommon.cfm?an=1&subarticlenbr=80. I was on the team representing GMU and we won. The loot was not as great as in Utah though, we "only" got $10,000. I think the experience was extremely valuable to me. I mean how often does a guy who used to invest in single family homes get to participate in a project as big as this? http://youtu.be/f-mlRQJBkyk

Brian H. · Answer

Welcome Porter. I can't speak to the Universities RE program but would highly recommend you start networking now with local Utah investors. This site is the perfect place to be. Also check out http://slreia.com/, a local rei association in Utah.

Kevin Wilson · Answer

Account ClosedI am actually from San Jose, CA as well and just moved to Arlington,VA to attend the GMU MRED program. Following up on your comment, I do not think 38 is too old to start. A lot of people in the program (the majority) are 35+. Let me know if I can provide you with any additional information.

Account Closed · Answer

Thank you @Kevin Wilson ! I wish you good luck on your study. One question I have though is that there are different Master of real estate programs in the country or even in California, do you mind if you share some of your thoughts on why you picked GMU for your study?

Account Closed · Answer

Hi @Roger Lin and @Evan Hyde, I found this older post of your and I am at a similar situation as @Porter Rappleye. I have been a buy and hold investors and I want to learn deeper in real estate. But I am 38. Do you think I am too old to go into a program like that and get the benefit? Thanks.

Jacqueline Carrington · Answer

I think you should get uour master's if your interested and for your personal satisfaction/achievement, not because I think it would help you more in your investing. Experience will be the best teacher there.

Porter Rappleye · Answer

Everyone, Thanks for all your insight. The majority of what I am hearing is positive so I think I'm going to continue to look into it. I have a tiny bit of experience with my two little house flips I've done but I'm nowhere even close to where I want to be and I think by associating with experts on a regular basis and studying the fundamentals I'll be much better off. Again, I appreciate all of your thoughts!

Chris Winterhalter · Answer

@Roger Lin Congratulations on winning the Capital Challenge. That is awesome! @Porter Rappleye Ann makes some good points. You could get some amazing exposure to the real estate community and learn a lot from a MRED especially if you are fully committed to it. Then you could work for a company that's inline with your investing goals to learn how the pros conduct business. Mistakes made on your end won't be on your dime and will more than likely be avoided with your support network. If you leave on good terms those relationships can last you a lifetime in your investing career. You might be taking one step back to take a leap forward.

Ann Bellamy · Answer

I think there are two major considerations: 1. Cost/benefit If the cost will yield far more in earning capability than you put into it, then yes, it is worth it. 2. the connections and the jump start: I know some investors/developers who started with the education and working for someone else, and then later when they had more knowledge and connections, went out on their own. They are far more advanced than the average flipper I think it's sort of like having a degree from Harvard: While the education will help, the connections you make will have a far bigger impact over the long run. So I say, yes, go for it, as long as you are young enough for the benefits to come to fruition

Evan Hyde · Answer

Billy - you're right, you can learn everything the MRED teaches you on your own. The trade off is time. It's going to take years to get exposure to the kinds of deals you learn about in MRED in 1 year. I like the approach of just jumping in and doing a deal, but I also don't see anything wrong with working for someone else, earning a salary, and starting your own deals at a higher level. Here's another component that's unique and pretty cool: The Utah Real Estate Challenge. Team of students have the opportunity to put together a pitch for a development deal that is presented to a room full of establishes pros. The winning team gets a $20k cash prize and some of the deals from years past have actually been built. It's a cool way to get your name out there and has led to several jobs or connections that have proven invaluable. Evan