Going to school?

Question

My friends aunt is a real estate investor out of California. She said that if I want to get into the real estate business then I should go to school. I don’t think I need to go school. I’m not the smartest but I don’t think real estate is something I should spend years in school focusing on. Do I need school? Or should I keep reading books and build relationships with other investors?

Dylan Speer · Answer

Latter option is what I'd say. At the end of the day a lender isn't going to give you a loan because you have a bachelors degree. They'll look at your income and debt level.

Scott Mac · Answer

You need down payment money, and reserves money, and I doubt school will make you any smarter than you are now. If you are not smart they just give you low grades.You need down payment money, reserves money. Which is like in Football, If you want to play you need pads and cleats. Without that--you are just a spectator.You also need a job that is steady for at least 2 years, and pays enough to save the money, and qualify for a loan.Will a loan officer laugh at your application if you earn minimum wage--maybe.Would going to school get you a better paying job--maybe--So with down payment money, (20% or 3.5% for some things), and the ability to get a bank to loan you money...credit history good (vs fouled up), and your financial ratios of borrowing to income in order, as well as adequate income as dictated by the lender,and at least 2 years stable employment--and you know what you are doing when you buy and rent out...you could make it.You need enough money to play the game--focus on getting that and learning this business and you will give yourself a chance.

If you join the military and save 100% of what you earn, you could get a 2% down VA loan when you get out to start out--maybe look into that--but do not believe anything the recruiters tell you--check it out on your own--you need cash in the bank to be a landlord.

Good Luck!

Jared McCorkle · Answer

As someone who currently is in College it really depends on what area of real estate you are trying to pursue. If you are trying to be a realtor or a appraiser then you don't need to go to school for that it would be a more efficient use of your time to get your license/certification. If you are trying to be a investor again you don't need to go to school for that, if you feel that you need to take a class, take a Real Estate class at a community college for a couple of hundred of dollars instead of commit to a 4 year university if you are trying to be a investor or something like a realtor/appraiser.

However, if you want to be something more specialized in the Real Estate industry then a 4 year college might be more beneficial, I am a Accounting Major in College right now and I know people who have graduated and specialized in Taxes for Commercial Real Estate and also have clients who are investors in Residential Real Estate.

At the end of the day, whichever path you go, you're going to need some form of Education, your going to need to make connections and build relationships either way. Whatever you want to do I would research the Requirements in your state to become that and build from there

Jim K. · Answer

@Xzavion Schultze

One thing I can confidently predict, Xzavion. Life isn't going to work out for you like you think it will. With that in mind, prepare a defense in depth against getting shafted for the rest of it.Such a defense usually means opening up other employment options than "real estate entrepreneur," and most them will involve getting a college degree in something that will both give you a steady income and hopefully also set you on a course of lifelong reading and learning.

Chris Merchant · Answer

Not saying school isn't good.  But personally I think you will be better off reading different types of books and shadowing or working with someone else that is established.

Feel free to PM if you want to discuss different books I've read and found beneficial.

Hamp Lee III · Answer

As long as you have a great plan, go for it.

You’ll find many investors here struggle with financing more than any other issue.

Trust you gut and listen to wise counsel. You don’t have to live in fear, but one of sound judgment and careful planning.

I wish you all the best.

Ben Firstenberg · Answer

Listen, I didn't love school and I hate that it's pretty much "required" for a lot of things. But I will say it has a lot of benefits. The biggest of which is, it gives you time to grow, learn and mature.

Whether you NEED it or not is sort of dependent on you. Some people do, some don't. I do agree that going to school FOR real estate is probably not necessary. You could go get a degree in more or less anything you want and still end up in real estate. Take it from me, I majored in aerospace engineering.

That said, paying for school is an important piece too. I would not take out a bunch of student debt for school just to "try it" or whatever. A lot of people just go to college because they're "supposed to" and pay whatever it costs and don't really have a plan. That's not smart.

Also, I wouldn't listen to what your "friend's aunt" says. One opinion of one person doesn't mean anything. Talk to your parents, grandparents, teachers, mentors... any adults in your life who have their sh*t together and see what they say.

Going to school?

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