New York City Newb. Should I get MBA?

Question

Hi all,

As the heading entails I am pretty much a total newb in the REI scene but am looking for any way to learn and start investing. I am currently a 24 year old architect in NYC but I have decided I want to change course slightly and become a real estate professional in some capacity. My plan is to learn as much as I can about real estate finance and investing, and when I feel ready, become an investor. As of now though, I figured joining BiggerPockets would be a good start to my journey. My first question would be what books are best when just starting out? Also, I am thinking about going back to school to get an MBA with a focus in Real Estate Finance but am not sure if I should skip this step and dive straight into investing. I wanted to see what people thought of this decision, as I have no debt from my undergraduate schooling and am not sure if incurring many thousands of dollars in student loans would severely hamper or delay my dreams of investing. The big question is whether it's smarter to go learn in grad school or learn from books and as I travel on my investing journey. Any and all input is greatly appreciated.

Thanks,

Mark

Ali Boone · Answer

Hey Mark! It completely depends on what you want to do with real estate investing. If you want to own rental properties or flip houses, you won't learn any of that in grad school. If you want to do RE financing or any of that, then that's another story. Unfortunately most education in REI isn't found in school. But, completely depends on what you want to do.

Bernard Klein · Answer

If your MBA will put you into a debt that you can't see yourself repaying in the near future, skip the class and hit the streets. If you are willing to pay for it outright or set up a plan to live on the cheap and pay it off quickly, then go for it. Just remember, you can be an expert at real estate and not have a penny to invest. Even if you had some money, but were $100K+ in debt, you won't necessarily be in a position to borrow for an investment, whether it be your primary residence or true investment property.

Vijay Rawtani · Answer

Welcome to REI. I am also new. Have engineering and MBA  education. Agree with Mark and others. Find a mentor, read and listen to information available on BP. BECOME street smart. I am headed on that course.

Wish you an exciting journey.

Mark Gallagher · Answer

@Mark Milbrandt

Welcome to BP. You've taken the first step and that's educating yourself from people who are immersed in investing day in and day out. You'll never learn that in a classroom. If you were my worst enemy, I would still tell you to skip the MBA. You need street skills in this game, not book skills. Sure you'll need to know numbers, but they're basic numbers and formulas. If you don't have debt, don't get debt unless it's in the form of a mortgage.

Find a rental property out of state would be my first bet for you. Save up 25% down, and find a $50K rental somewhere where you can get a couple hundred dollars a month cash flow.

Find a mentor or someone you can team up with and try to learn the ropes on the ground. Free education in the field, beats paying someone to tell you to read a book and take a test. Find a successful investor and ask them if you can help them in some capacity in exchange for learning.

Whatever you do, keep reading Bigger Pockets.

Best of luck!

Account Closed · Answer

Hi @Mark Milbrandt

Welcome to Biggerpockets. Great to have you here.

Angel Rosado · Answer

Hi @Mark Gallagher nice to see a local here.  I agree with everyone has said in this thread.  The reality is that learning from experienced investors through the podcast and the blogs will provide a better ROI for your time.

I actually have the opportunity to attain an MBA without having to pay tuition but the opportunity cost involved with time that has to be invested to achieve an MBA, in my opinion, is not worth it.  I mean if you spend the same amount of time that you would invest in an MBA on learning about REI, hustling side jobs for a down payment, and networking with other investors you will probably become way more financially success and gain you invaluable experience.

Yasmine Bisumber · Answer

Well! Interesting you ask about getting your MBA. I go back and forth with  that daily. I am also 24 and working on my MBA (but in management)..now  the reason I am still on that path is because I love RE AND I LOVE Business. So  I guess I am doing it for myself more than I am to help me with REI. I figured  it cannot hurt either way. But who knows, I might change my mind once I really  get going in my investing career.

I know I didn't answer your question or give any direction. I guess what I am  trying to say is if you want your MBA focus on something you like because you  want to instead of focusing on a RE related degree, you can learn all you need  to know about investing from outher people, books and Bigger Pockets!

Best of luck to you! :)

Mark Nolan · Answer

@Mark Milbrandt

Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.

Daniel Sisto · Answer

Welcome to BP. I was in a similar situation from Upstate NY except I wasn't sure I wanted to get involved with Real Estate until I was getting my MBA from Syracuse. Now, I just got my MBA without a focus in Real Estate so it did not benefit me in specifics in regards to RE obviously. I believe that you pretty much can get a personal MBA if you read a lot of books and educate yourself in a manner that will get you the proper information that you need and this will save you on the debt end. If you are planning on just going out on your own and not going to work for the man, I would personally just spend those two years educating yourself as much as possible in regards to RE. It also depends on where you were planning on getting your MBA and if it is worth it or not. If you are going out and working for the man and you are going to receive your MBA from a premier college, your MBA will be worth it.

Dmitriy Fomichenko · Answer

Welcome to BP @Mark Milbrandt

New York City Newb. Should I get MBA?

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