Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ross NA

Ross NA has started 1 posts and replied 5 times.

Post: To MBA, or not to MBA?

Ross NAPosted
  • Posts 5
  • Votes 2

One more thing I should add. If you could get into a top 7 MBA program, and wanted to do investment banking or management consulting, your chances of getting hired in those fields at your age is slim to none. They hire younger people for those roles who they think will work over 80 hours a week. One exception may be academia. If you want to get a PhD in Business than getting an MBA from a top 15 or so school could help springboard you in a PhD program, but you still have to have top GMAT scores for that. 

"the contract price is the ultimate data point of the market showing the properties value."

Thanks for that gem.

I appreciate the comments so far. If a bank's appraiser was really good at valuing the property, nationwide, I would expect that roughly 50% of appraisals would come under the offer price, and 50% above, but that does not seem to be the case. 

Post: To MBA, or not to MBA?

Ross NAPosted
  • Posts 5
  • Votes 2

I am an MBA. Here are my 2 cents. 

If you want to go into management consulting, investment banking, getting an MBA is a good deal IF you can get into a top 7 school. 

From a pure ROI perspective, otherwise, an MBA is not worth it, especially if you do it full-time. And especially if you want to be an entrepreneur.If you cannot get into a top 7 school I would only do it if your employer will pay for it. 

Do not believe the salary statistics the schools promote. I repeat, DO. NOT. BELIEVE. THEM. They are manipulated and it is not the degree which caused those people to get their salary (it is largely years of experience, the area and field they work in, and ability). An MBA is just a tiny plus (unless from a very top school). If you do decide to do it and you cannot get into a top school, I recommend doing it part-time while you keep your full time job, at a cheap school. Make sure the school is AACSB accredited, and also try to find one in your general region. 

I am going back to school to be a high school business teacher but I did not need my MBA to do this. 

Currently, my spouse and I are renting an apartment. I found a home that is unoccupied by the owner that has an asking price of $148,000, but I know from comps that similar homes sold recently for about $133,000 or so. We offered $138.5k but the seller declined. afterwards my realtor sent over a list of comps which the selling agent did not disagree with. From the sounds of things the seller will sell between $145k-149k. 

I think the seller is being a bit irrational and we are we are considering walking. Our realtor suggested that we should offer $145k, and because it is contingent on the bank's appraisal, we will not be paying in excess of market value. I realize banks are more careful now post-bubble but I have done a bit of research and it appears that banks uncommonly appraise homes for less than what they sell for, and usually above. I also do not like that appraisers SEE the amount we want to buy the home for--just how could that not bias the appraiser. 

Also, because we are first time home buyers and only putting down 3-5%, the agent says that the buyer might come down if it appraises for less than it is worth. I do not like the idea of using a bank appraisal as a bargaining chip, and again I have some questions about their accuracy. 

There are not a lot of alternatives on the market in the area we want to be in that we also like; the only other alternative at this point, if we do not get this home, is to rent for 3-6 months to see if the inventory improves. 

Anyways, I am interested in your thoughts. What do you think of the realtor's advice? Is the bank's appraisal accurate, and is it a good idea to use it as a bargaining chip?