Is a degree worth it?

Question

I should first start out with my situation/background.

I'm 18, currently in my 2nd semester of college studying Electrical Engineering. I am also really interested in real estate investing. I have been exposed to it by my dad, I've worked lots of summers and weekends on homes with my pops to fix them and sell them/rent them. I really want to do this immediately when I graduate school (3 & half years) from today. I'm studying Electrical Engineering, I really like it and I'm pretty sure I can get a job and decent salary out of school 65k+ and immediately start throwing as much as possible into investments(In an area where Home prices are lower than average in the U.S.). But is it worth it to waste my time now not making money ( school is too demanding to have a job at the same time), or to drop school find a job and save as much as I can living with my parents, then go in to real estate from there? I feel like I could get a head start taking the no-school option and since most people quit their jobs to do real estate investing full time eventually what's the point? So do you think the college degree is worth it? ( I think it would be helpful to say I would be graduating with zero debt since I'm on full ride scholarship as long as my GPA stays above 3.0)

Sorry if this is a childish question for biggerpockets or the wrong place to post, I've been reading alot here and was just looking advice from the people with experience here.

I just want to be really successful and make my mom and dad proud.

James H. · Answer

Everyone who wants to be a real estate investor can be a real estate investor. An engineering degree in EE will open doors in places that not everyone can go.

If at the end of 3 years you can get a 65K a year job with your degree, you will most certainly have not wasted you time.

Any successful investor is diversified. Having a rigorous technical degree from a 4 year university is a very strong hedge against your other investments.

Getting a full scholarship for maintaining a minimum very B average (hopefully you are doing better than that) is a gift from heaven that you should get down on your knees and be thankful for every half hour that passes.

There are other intangeable benefits to a college degree that cannot be realized in any other way than getting a college degree.

Most people do not quit their jobs to invest in RE full time.

James Vermillion · Answer

Miguel, I would say a college degree is well worth it, especially since you are on full scholarship in a high-demand and high paying field.  When you graduate in a few years you will have the ability to get a good job and save money to get a great jump on real estate investing.  Sure you could get a little head start now, but I think with the earning potential you will have you will be able to make up for lost time very quickly.

I am a part time investor and graduated 5 years ago and I will tell you, my good paying W-2 job has been crucial to growing my  company.  Sure I plan on going full time at some point, but I do not think I would be where I am today had I not finished my degree and been able to secure a good job.  I am sure others will chime in with different experiences.

Also, it is nice to have other skills and be marketable in another field in case you decide real estate is not what you want to do with your life.

James Vermillion · Answer

Be very glad Bill is not your father...I know I am! :)

Bill Gulley · Answer

Some pretty good reasons to stay in school.....here's another one

If I were your father and you quit, I'd kick your tail out of the house and break your plate!  :)

Keith Jablonowski · Answer

Couldn't agree more with all those that said get the degree.  You hear success stories of those who are tremendously successful without a college degree but they are few and far between.

I have a Mech Engineering degree and went into sales after college.  I have been very successful and am in a position now where I do have access to capital that I would not otherwise had.  I just wish I had the foresight to start into real estate in my 20's instead of late 30's.

Get the degree, no matter what you decide to do down the road it will be of benefit to you to have it.

Pat L. · Answer

I struggled through Mech Eng with a minor in EE.
Then ended up in drive control automation & traveled the world on contract jobs.
But that minor in EE saved me a lot of $$$ when renovating homes esp splitting the services for myself & others.
If you're serious about RE investment an engineering background will save you a fortune & give you valuable insight into structural re-design (assuming you take some design courses) when you blow out the walls etc of an older home or add a room above an attached garage etc.
It's a great discipline & you will never regret finishing.

Timothy W. · Answer

Miguel,
I work with guys who went on to finish the electrical engineering degrees, got their PE licenses and became forensic engineers making between 200 and 250 an hour.  Maybe some get 150.  This is where they got to about 10 years out of college, working at it and making money on the way.  These are real numbers.  I authorize the payouts.  I thought of doing it myself.  I even got accepted to go back to school at a Purdue engineering program.  I chose not to as it would be a 10 year journey for me that way and frankly I can make just as much by then doing things I already do without having to restart something new.  You're 18 though.  You have 18 more years than I do.

So, is making between a quarter of a million to half a million dollars a year worth it for you to stick to it and finish?  Can you do some very interesting REI with that kind of money coming in?

Look beyond what a "standard" engineer makes and look for the high paying niche.  That's when it gets sexy and starts to motivate you.

Glenn Espinosa · Answer

Miguel  Garcia We have A LOT in common. My father was a successful real estate investor and I grew up spending my summers working on houses. I knew at an early age that I wanted to do real estate above all else.

But, I had the foresight to complete college and get a good paying W2 job. My degree is my security blanket - If I go broke doing real estate the worst that could happen is that I'd be stuck doing my 9 to 5 gig for a couple years until I got back on my feet.

Stay in school, get that good earning paycheck, learn as much as you can  about real estate while in school. When the time comes for you to start investing, you'll be so much more ahead of the other guys as you will have a trump card - a good profession to fall back on. Believe me, when it comes time to put up or shut up and make the big decisions in real estate, having that degree and knowledge will allow you to make bigger moves faster than your competitors.

Theres no rush and don't ever think you're missing out on a deal because you're staying in school.

Glenn

Bill Gulley · Answer

LOL, I do understand, but my sons seem to think there are some benefits....

Ben Leybovich · Answer

Miguel,

I agree with James.  An electrical engineering degree is in rather high demand so it is one of relatively few degrees that are with the time and money.  Besides, it will absolutely come in handy in the world of RE.

I studied of 7 years before doing my first deal.  It sounds as though you have an opportunity to do the same.  Study RE on the side while you are in school on the side.  Understand yourself and set your goals.  With W2 income you will be well positioned to throw some punches in a few years.  Be active on BP.  Ask questions.  Good luck!

Is a degree worth it?

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