Higher Education vs Rental Properties

[Paul Whitford]

All,

New to the forum, but long term lurker and avid listener of the podcast.

I currently work in Commercial Real Estate banking in the DC area. I’m torn between whether I should pursue my masters degree in real estate to help shape my development and build a strong network in the industry or start investing in rental properties.

The cost of the masters would be about $30-40k.

I've found 3 markets outside of my own where I could use that $30-40k to invest in a single family rental property for a 7% cash on cash return & 14%+ IRR's. I'm familiar with these markets, have great contacts there, and would have no problem traveling to them on a regular basis.

Looking for opinions on whether at this point in my life (mid 20’s), if the investment in higher education would outweigh the benefits of getting an early start in RE investing on my own.

Thanks

P

[Jim K.]

There's no way I would spend a minute of effort getting what sounds an awful lot like a credential-ornament. I've met way too many broke-as-hell people obsessed with framed pieces of paper on their ego walls and letters after their names.

You want a strong network in the industry order up a stack of cards from Vistaprint, hit every meetup you can, pass the card, pass the card, pass the card. Call these people up later and buy them food, ask them about their businesses, their spouses, their kids. Put yourself out there, and keep putting yourself out there. Even if you do a program to meet people it's not going to happen by accident.

Maybe the specter of rejection, of other people's harsh judgment worries you. Just keep reminding yourself that none of this matters and the best any of us can really hope for to satisfy our vanity and ambition, stroke our egos in the end, is a hole in the dirt to rot in. Works great for me.