What second major should I choose?

Question

I'm already attending school for a major of real estate, I'd like to add a second major (which I know you all would not recommend getting a degree in real estate at all necessarily to do this line of work), but if you did, which major, in your opinion would be best? I'll list a few here that I've considered...

Real estate bachelors with a second major in:

1) Economics?

2) Architecture?

3) Mathematics?

4) Statistics?

5) fill in the blank?

Which would be the most helpful? Please try not to discourage me and rather tell me what would most help me become successful in this field (and yes, I'd like to be an investor mainly)...

Thanks a bunch.

Marcus Johnson · Answer

@mohammad haidarasi

125k in student loan debt is insane these days unless you were planning on being a doctor, lawyer or any other job that has a very high pay rate.   And not to rub any more sand in the wound, you state you cannot use the degree.   Not sure if you knew this but the new average student loan debt as of 2016 is 37k, which sounds bad, but I came out of college with a Liberal Arts degree with 28k in student loans and this was in 1996.   So if you calculate for inflation I'd pay 45k today for the same debt back in 1996, which points out the fact that I had it harder then most students do today on average and what I did was find a career that I was second most interested in that had an immediate ROI, for a very low cost from a local school.

The point is that unless you have significant savings your not telling us about, I'd concentrate on a career that will have a good ROI and go to an inexpensive state school, apply for scholarships, grants, whatever and graduate as fast as you can.   After graduation, begin working and paying down your enormous debt.   Live as cheap as possible, bike to work, don't eat out, pound the pavement by working 100 hours a week.   Once accomplished you'll be able to conquer anything

If you were my son this is what I'd advise.   Good luck!

Juan Diaz · Answer

Unless you've got the money to invest yourself, you're presumably going to want to work for a real estate investment firm to learn the finance aspect, or construction to learn the construction aspect. If you're going the heavy finance route, it doesn't matter as much what you do in undergrad, but you'll probably need an MBA or masters in Finance or Economics to get into a major investing firm that specializes in real estate. If you're looking to go the construction side, you'll want to major in architecture, engineering (structural,  MEP) or construction management.

Likely the reason that number has responded here is that no degree really prepares you for a career working as a landlord or flipper. You can touch the fringes of it via the paths outlined above, but you're better off getting a major in a degree that can get you a nice job out of college, and then starting your real estate investment on the side until it becomes your career. There is no ladder to climb in real estate investing, unless you're talking about running a REIT fund in NYC (the high finance route, outlined above).

Marcus Johnson · Answer

To be honest, that is a difficult question for me to answer, because you have a child and a wife.  Does your wife work?   How old is your child?   I mean based on where you live the average salary is anywhere from 33k too 58k depending on the field and the average rent is $922, I think $800 sounds just fine, but how am I to know since I don't live there.   If you feel you can do better, then go for it.   I lived in a studio apartment before I bought my first house, so that I could afford a DP.   We all make sacrifces to get ahead or like you usually hear on the TV, the blame goes towards someone else for your failures.

By the way what do you think your job would be with an Economics major and do you anticipate a reasonable salary?

Keep on trucking man!

Alexander Stephenson · Answer

Hello! I am an Economics Undergraduate student and I would have to say Economics is the way to go.  The reason for which being that Economics creates the fundamentals for Finance, Marketing, Accounting, and Management.  Which means you will learn a lot about those types of things.  So when @Kenneth Reimer argues for Finance, I say Economics you'll learn that with even more skills.  You won't, however, learn as in depth on those topics or learn about other financial instruments as well.  Also, with econ you will use math as much as a Finance student, but you will also use statistics like crazy.  So I say you are more likely to learn a little bit about everything you may need with your real estate career, eventually you can expand on those topics.  Disclosure part, I am not a real estate investor just yet, I hope to be within 2 years!

Good Luck!

Kenneth Reimer · Answer

@Mohammad Haidarasl The first point of advice that I would recommend is pick something you're interested in. People simply cannot learn effectively at things they aren't interested in. Period. Second, I believe it depends on what you want to do in real estate specifically, as @Juan Diaz mentioned. You said you want to invest mainly. Great, but being an investor is too veg. Do you want to be hands on rehabbing properties when you BRRR? (Construction management) Do you want to get into notes? (Finance) Do you want to be a speculative investor looking for high growth markets? (Statistics)

All in all, I would find what you're most interested in, and what you're best at. Draw a venn diagram if you have to. Then go all in on your strengths. Ignore and outsource your weaknesses. That being said, I would still make sure you are adequate enough in your weaknesses so that you can't be taken advantage of.

Gun to my head: Finance. You need to understand cash flow modeling, discounting, IRR, capm, etc.

Hope this helps, keep hustling!

Kenneth R. Reimer

Kenneth Reimer · Answer

@Alexander Stephenson I respect your point, but I would have to disagree. Economics would be more beneficial if he was going to try and time markets. If the goal is to run a positive cash flow property while also putting himself in the position for appreciation, only the basics are needed for this in regards to economics. Demographic shifts, job markets, and general economic information will be the guiding light to picking an area. The real money is made in bettering operations. This will be made easier with an in-depth understanding of finance. Understanding discounting methods, IRR valuations, and financial metrics will be paramount in effectively multiplying his dollars.

Just my opinion and I appreciate your input ! Love a healthy debate. Happy investing!

Kenneth R. Reimer

Mohammad Haidarasl · Answer

As far as economics, I've decided to not pursue it after all and just to stick with the real estate degree. I hope I can land an internship (school provides opportunities).

Mohammad Haidarasl · Answer

Great reading suggestions! It totally is a lifestyle change, I must say. And I'll be the only one to provide for the meanwhile, my baby's just a year old. It's tough but it's completely worth the struggle. I've embraced the struggle.

Ralph R. · Answer

@Mohammad Haidarasl  If you are talking about owning and renting properties its more about certain financial habits, and knowing people.  If you want to be wealthy you live "wealthy".  I'm not talking about life style here, but money habits.  I learned many through self help books.  Think And Grow Rich, Rich Dad Poor Dad, etc. etc.  How to pay down debt, save money live frugal, and finally make your money work for you and KEEP IT.

Its also about interacting with people.  All people.  Tenants, Agents, Lawyers, Book Keepers and on and on. Communications, knowing what to ask, and how to ask it, then forming a gut feeling or instinct about what they told you.  Then verifying it.  Trust but verify.

All life goals are reached by turning a desire into an un yeilding drive by your own thinking.  Some people get a personal "Life Coach" to assist with this.

Much of what you need to learn is learned through making mistakes.  Many of the problems you encounter will not have a definite right or wrong answer.  Since there is no right or wrong answer, how can you teach this in a class?  Just look at the problems and many different solutions found on this forum at any given day and time.  Even then the poster cannot follow every response but must decide which one will best get him to his goal.   You learn by doing, and making mistakes, as well as from the mistakes of others.  Its easy for me to tell you how to ride a bike or how to drive a car with a manual transmission.  Its quite another to actually do it.

As you progress you will learn to set goals, (achievable, DEFINATE not general goals).  You then make a detailed course or plan to achieve that goal.  Now for the important part.  As obstacles come up you must adapt your plan. Make your plan and then work your plan.  The military (Marines I believe, hats off to them)  say "Improvise, Adapt, and Overcome"

This forum is one place to start.  Reading self help books, as well as listening to the podcasts will all help.  I guess what I am saying is start spending the time you would spend with a second major into developing the skills necessary to succeed in growing wealth.  Many successful wealthy people agree you cannot get the required mind set or skills necessary to build true wealth in a formal education.  Yes it can help you get a very good W-2 job or self employment that can in turn provide financing to sponsor your wealth building and success. But without the proper attitude, and experience to properly grow those funds you cannot achieve true wealth.  Most education is directed at a 9-5, W_2 type job, or some form of self employment.  Investing, and wealth building, as well as freedom from your employment requires something not taught in most schools.

Cheers

RR

Mohammad Haidarasl · Answer

Thanks for the great advice. Actually my first choice was going to be economics for the exact reasons you've mentioned, it seems to be well-rounded and a great foundation. As for my huge loan, you're right, it was for pharmacy and I unfortunately cannot attend anymore, and cannot finish the degree off. I was able to accumulate that 125k loan and that is a huge burden on me. Thankfully, financial aid will help me for this degree I'm going after now, up till I get my bachelor's. Then I'll apply for the MBA RE program, which will be out of my own pocket mostly. I was going to ask your recommendation as far as living is concerned (I have 1 baby and a wife), would you recommend I look to moving (as I currently live in an apt paying about 800 a month (I kind of find this to be a waste).

What second major should I choose?

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