To invest, or not to invest in Real Estate Education...
That is the question? Actually, there are more questions which need to be asked.
Question 1 - how serious are you about this career? Too many investors make mistakes during transactions or miss opportunities because they don't recognize a potential transaction. Any business endeavor is going to require an investment in education in order to have success and real estate is no different. You're either going to pay learning by mistakes, learning by missed opportunities, learning by splitting several deals until you have the knowledge and confidence to do deals on your own, or investing upfront in education. If you're not willing to invest time, sweat, and money into learning the industry in which you supposedly want to participate, then you do not deserve success.
Question 2 - how should I invest in learning the business? There are really 3 ways: books, seminars /education companies, and mentors. Generally, a combination of all 3 works best. Even Donald Trump still reads books on real estate.
Question 3- how do I learn? This is the biggest question you should ask yourself. Are you better reading and retaining information, learning in a classroom environment, learning on line, watching video, listening to audio, or learning by doing? Once you understand your learning style then find information in the format in which you learn best. For example, I'm a classroom junkie. I have an undergrad degree, MBA, and certifications in other industries as well. For me to understand and learn real estate, I would need to learn in a classroom as it's how I've learned and had success in the past. Others have different styles and ways of learning. Identify what works best for you and take action.
Question 4- This last question is most important. Who is responsible for my success? Ultimately, you are. In my humble beginnings, I was part of a real estate education company that has dozens of local success stories and hundreds of failures. What's the difference between the winners and the losers of this game? Everyone had the same education, so it wasn't the company's fault. It is up to the individual. If you have knowledge, do you take action? How do you take action? Education alone may not be enough; you may also require the services of a mentor to guide and provide confidence for you.
They key to real estate success is 100% up to the individual investor. Understand how you learn, invest in the right manner, and put yourself in position for success.
Comments (13)
One thing I've realized the past crazy month is that having a good team is more valuable than any education. My transactions don't seem to go according to any plan I've read about!!! But surrounding myself with good business partners, a good attorney, and experienced Title Company sure goes a loooong way to filling in the gaps. Education is good for a basis and foundation of understanding. But there is no substitute for experience. If you can, leverage some experience from others!
Tom Bukacek, over 14 years ago
People are always looking for a scapegoat instead of looking in the mirror! It is YOUR responsibility to make it happen...not your educator's!
Bryan Hancock, over 14 years ago
It's funny how many people give their real estate investing education the blame for their failures though. I received my MBA thru University of Phoenix and most of our classes were group projects. I'm still in contact with 3 of the 5 on my team. The other two have not had any success in their careers. Was this U of P's fault? Do you ever hear unemployed college grads blaming their university? Yet so many people blame others for their lack of success. Get educated and be accountable for your results.
Tom Bukacek, over 14 years ago
Being able to piggyback on a local investor's reputation, contracts, and expertise is an excellent way to overcome fear. Once students see a presentation 5-10 times they are generally ready to do them on their own. The coach then takes the training wheels off and only helps when it is necessary. I am learning C# and SQL right now the same way...You start small with someone looking over your shoulder, progressively get better, and eventually only consult a coach when you have tough problems....no different than real estate.
Bryan Hancock, over 14 years ago
There is definitely a balance that needs to be found. You can continue to study, not believing you are ready to make that first investment until you're convinced you have eliminated all of the unknowns. Or, you can jump in too soon, not knowing whether you just made a good investment or not.
Tod R., over 14 years ago
Charles- I agree about 'professional' mentors, or as Bryan refers to them 'hucksters'. In fact, I've never heard a success story from someone working with a coaching program from a well known out of state guru over the phone. If anyone has had success with that, I'd love to hear about it. All the coaching success stories I've heard are smaller, local guys partnering up on deals together. Based off my knowledge and experiences, I'd recommend people working with local investors at their REI club as well. I think the key is local and the investor have a system in place.
Tom Bukacek, over 14 years ago
All coaching programs are not created equal. Unfortunately, you have to compete with the hucksters when new investors are figuring out which way to go. The folks that pick the education circuit of lies over our program are either misinformed or greedy...or both. We don't have any room for those folks anyway. We purposefully designed our program to be small and intimate because we knew that the meaty part of the bell curve would flock to those seminars in lieu of doing actual, hands-on training. We want to work with the cream of the crop and let the actors do their job with the rest of the folks.
Bryan Hancock, over 14 years ago
While I think a mentor can be a great way for someone new to investing. Unfortunately most so-called mentors could end up being a disservice to a new investor. I'm certainly not a fan of most of the guru stuff. I've been to many of these seminars and listened to their hard sell tactics. Most of what they offer is a chance to spend your money with little real education. I do think the local REI groups are a great place for new investors to meet and get to know other investors and learn from them.
Account Closed, over 14 years ago
Yes, Kevin, there are professional students out there. Surrounding yourself with others who take action, such as many in local REIAs, or obtaining the services of a coach and mentor may actually assist. There's no magic potion. Just the honest answer to the question of "If I take this education, will I act?"
Tom Bukacek, over 14 years ago
Tom, I think one of the other questions people need to ask themselves is at what point in my education do I dip into the waters and do a deal. I have seen to many REIA meetings that are filled with people who have taken education to a PhD level, but have not done a deal themselves. Its that perfect combination for everyone between education and practical experience that needs to be considered and planned for.
Kevin Kaczmarek, over 14 years ago
It is like anything else in life. You need to get educated and learn how things work in practice...where the rubber meets the road. There isn't a secret formula for success. It takes hard work, dedication, and commitment to pull yourself up by your bootstraps and grow a successful real estate business.
Bryan Hancock, over 14 years ago
It seems there's a lot of 'don't read or get educated- just do it' advice on these forums and blogs. I don't necessarily agree. Reading a book or taking a class doesn't make you an investor. But not reading or educating yourself and taking action isn't a recipe for success either. Understand how your learn and find an educational system that teaches you in that manner. Then, if necessary, find a mentor. Then go out and find real estate opportunities.
Tom Bukacek, over 14 years ago
Education is important. Filtering the good information from the bad is especially difficult for newbies though.
Account Closed, over 14 years ago