To MBA, or not to MBA?

[Christopher Christian]

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!  

[Chris Jensen]

@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