MBA vs real estate license vs both?

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anthonyphamy
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MBA vs real estate license vs both?

Post by anthonyphamy »

Good evening,

I am a recent pharmacist graduate 30 years old, now working full time, very happy with my job, but looking for the next step/challenge. Loans are all paid off, maxing out my IRA/401k, and currently saving for a down payment for my first home. I am debating between MBA and/or real estate license to supplement (both for personal and financial growth) my current career with my reasons below.

My reasons for online MBA:
1. I am interested in finances, thanks in large part to this forum.
2. The tuition would be paid 100% by my current company.
3. Open opportunities for administration down the road if I decide to go into that path

My reasons against online MBA:
1. It's online, and not a high tiered school
2. Pharmacists can enter administration without MBA's, but as a director or as you go higher up, it's usually preferred
3. Worth the time investment?

My reasons for real estate license:
1. I want to get into real estate investments to supplement my income. I think a real estate license may be beneficial when buying my own properties to live in, as well as buy properties to rent out. Depending on how much time I have, I may also have time to sell to family/friends.

My reasons against real estate license:
1. I would have to pay the recurring broker/license fees, and I'm not sure if my investments or sales would over these costs.
2. I'm not sure how much time I would have to sell, as my current job I work M-F 8-5, leaving me with just weekends for open houses (which I would also want to spend enjoying time with family/friends). This may lead me to just selling properties for myself, family, and friends.
3. Worth the time investment?

Ideally I would start one of these later this year, as I would like to complete one or both prior to settling down and having kids. If I do decide to do both, any recommendations on choosing one to do before the other?

I'd appreciate any thoughts or advice on either or both route. Thank you so much in advance.

Anthony
gclancer
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Re: MBA vs real estate license vs both?

Post by gclancer »

Regarding real estate licenses, while I’m sure it varies by state, real estate agents have to be affiliated with real estate brokerages, and you can’t just start your own real estate brokerage right off the bat. All that said, if you’re going to pursue your real estate license make sure you’ll actually be able to use it (ie that there’s a brokerage that you’ll actually be able to affiliate with).
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Sandtrap
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Re: MBA vs real estate license vs both?

Post by Sandtrap »

anthonyphamy wrote: Tue Jan 22, 2019 9:33 pm Good evening,

I am a recent pharmacist graduate 30 years old, now working full time, very happy with my job, but looking for the next step/challenge. Loans are all paid off, maxing out my IRA/401k, and currently saving for a down payment for my first home. I am debating between MBA and/or real estate license to supplement (both for personal and financial growth) my current career with my reasons below.

My reasons for online MBA:
1. I am interested in finances, thanks in large part to this forum.
2. The tuition would be paid 100% by my current company.
3. Open opportunities for administration down the road if I decide to go into that path

My reasons against online MBA:
1. It's online, and not a high tiered school
2. Pharmacists can enter administration without MBA's, but as a director or as you go higher up, it's usually preferred
3. Worth the time investment?

My reasons for real estate license:
1. I want to get into real estate investments to supplement my income. I think a real estate license may be beneficial when buying my own properties to live in, as well as buy properties to rent out. Depending on how much time I have, I may also have time to sell to family/friends.

My reasons against real estate license:
1. I would have to pay the recurring broker/license fees, and I'm not sure if my investments or sales would over these costs.
2. I'm not sure how much time I would have to sell, as my current job I work M-F 8-5, leaving me with just weekends for open houses (which I would also want to spend enjoying time with family/friends). This may lead me to just selling properties for myself, family, and friends.
3. Worth the time investment?

Ideally I would start one of these later this year, as I would like to complete one or both prior to settling down and having kids. If I do decide to do both, any recommendations on choosing one to do before the other?

I'd appreciate any thoughts or advice on either or both route. Thank you so much in advance.

Anthony
Absolutely: MBA
You can do R/E investments without a Real Estate License. And, even with a R/E license, you have to be linked to a broker. IMHO: It is not worth the time and investment unless you want to quit your job and become a R/E salesman. Invest your free time in your family. Dividends are higher. (You do not want to sell properties for family and friends!!!!!)
Brokerages will require a minimum investment of your time, and "productivity" to be affiliated.

Suggest: Higher education and training tangental to your existing education and career. Concurrently, an MBA.

But, if you think that an MBA is a requirement to excel in your own personal investment finance path, you don't need to. Get an MBA on this forum. "Masters of BogleFinance Administration". :D
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quantAndHold
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Re: MBA vs real estate license vs both?

Post by quantAndHold »

If your company will pay for it, consider an executive or part time MBA program instead of an online one. Executive and part time programs are targeted at working professionals to develop their management careers. A lot of the value in a MBA program is in the networking, which you won’t get in an online program.
Yes, I’m really that pedantic.
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leeks
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Re: MBA vs real estate license vs both?

Post by leeks »

MBA.
You don't need a real estate license to purchase a home or invest in rental property.
123
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Re: MBA vs real estate license vs both?

Post by 123 »

Try the real estate license first. In most states it's a credential that you can knock out pretty fast. Maybe it'll satisfy your itch for awhile.
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Teague
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Re: MBA vs real estate license vs both?

Post by Teague »

Keep in mind that, in my state at least, real estate licencees are constrained by fiduciary or similar responsibilities for all transactions they are involved with. Thus, you may be held to a higher standard than others in your personal dealings - a potential disadvantage to you as a private real estate investor.
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Topic Author
anthonyphamy
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Re: MBA vs real estate license vs both?

Post by anthonyphamy »

Good afternoon,

Thank you for all the helpful responses.

1. Regarding which state, I currently live in California, and therefore would follow CA licensure. I haven't looked into any brokerages that I would want to work under yet.
2. I don't want to quit my job and become a R/E salesman. I do strongly agree with investing my free time with my family/friends :) I like the higher education and training tangential to my pharmacy career, concurrent with MBA. I still have much to learn before I obtain the "Masters of BogleFinance Administration", but I do learn very much from this forum :P The MBA is less for my own personal investment path, as I am comfortable with this forum helping me with that. The MBA would be more for my own professional financial growth and potential opportunities.
3. Unfortunately my company will only pay for this online program with the school they are affiliated with. Would it still be worth it online, albeit without the same connections?
4. Thanks for clarifying that I don't need an MBA to invest in real estate, as well as the fiduciary responsibilities that come with real estate licensure.

I can always count on this forum to provide sound, wise advise. With the feedback I've gotten so far, I'm leaning more towards starting off with MBA.

Cheers,
Anthony
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4nursebee
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Re: MBA vs real estate license vs both?

Post by 4nursebee »

The level of integrity required to engage as a realtor and having properties for rent or sale is higher than as an unlicensed landlord.
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alex_686
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Re: MBA vs real estate license vs both?

Post by alex_686 »

anthonyphamy wrote: Tue Jan 22, 2019 9:33 pm My reasons for online MBA:
I would skip this. MBA schools are of varying quality, running from diploma mills to high quality stuff. All of the online MBAs programs that I know of are on the diploma mill level of quality. All of the high quality MBA programs that I know of have a strong social aspect to them. Good runners find other good runners to run with - runners that will push them. Same thing with MBA school - you want to run with other driven high quality students that you can learn from and be push by them.
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Thegame14
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Re: MBA vs real estate license vs both?

Post by Thegame14 »

I personally wouldn't recommend part time realtor, I think a lot of people do this, plus I don't get why real estate agents get to charg the insane 6% when they don't do anywhere near the work they used to have to do before the internet. Anyone can list a house, put up pictures, and look at comps....

I also wouldn't recommend online MBA, it isn't seen as having any value. Unless it is a top top name brand, ie Harvard, Yale type school, which you said it isn't then it isn't valued at all. All this university of phoenix stuff, no one values that in the job market.

would they pay for you to go for your MBA part time at night at a reputable school?
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anthonyphamy
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Re: MBA vs real estate license vs both?

Post by anthonyphamy »

Good evening,

My company is affiliated with Colorado Technical University, and will only pay 100% of tuition through this school. Hence me looking into the online MBA program at this school. (link: https://www.coloradotech.edu/degrees/ma ... ss/general)

My company does offer to pay 3500 for tuition per year if I decide to go to a different school, but that isn't much to pay for a executive MBA program (eg, SDSU, as I live in San Diego).

I was leaning more towards MBA > real estate with the initial comments, but after many of the recent comments speaking poorly about online programs I am a little more hesitant. I still am partially enticed by the ease of it being online, it being fully covered, and the challenge of learning new things, so I think I'll have to give it some more thought.

Cheers,
Anthony
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RickBoglehead
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Re: MBA vs real estate license vs both?

Post by RickBoglehead »

Do some research into the specific accreditation that any program has.

If your company pays 100%, and they value it, that is a consideration. But note that others may not value it near as much.
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jaydub71
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Re: MBA vs real estate license vs both?

Post by jaydub71 »

My general rule of thumb is that if you are going to stay in the same industry, it does not really matter what MBA school you attend. If you are going to change careers, you need to go to a highly respected school. FWIW, I attended a top 10 MBA school because I was changing careers. Essentially you are paying for the career placement office, which I think is a worthwhile investment. If I was staying in my old career, there was no reason to pay the big tuition bill.

On the Real Estate license issue, many brokerages have a "referral company" where you can hang your license and avoid the monthly desk fees, etc. This is for people who have a license but don't plan on being active. The commission splits might be less favorable than a regular agent. You just have to do the math and see which one is better. Personally, I have a license and have it hung in a "referral company".
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Re: MBA vs real estate license vs both?

Post by Thegame14 »

anthonyphamy wrote: Thu Jan 24, 2019 12:23 am Good evening,

My company is affiliated with Colorado Technical University, and will only pay 100% of tuition through this school. Hence me looking into the online MBA program at this school. (link: https://www.coloradotech.edu/degrees/ma ... ss/general)

My company does offer to pay 3500 for tuition per year if I decide to go to a different school, but that isn't much to pay for a executive MBA program (eg, SDSU, as I live in San Diego).

I was leaning more towards MBA > real estate with the initial comments, but after many of the recent comments speaking poorly about online programs I am a little more hesitant. I still am partially enticed by the ease of it being online, it being fully covered, and the challenge of learning new things, so I think I'll have to give it some more thought.

Cheers,
Anthony
$3,500 doesn't sound like a lot at first, but you can do a few things to make it work, and also remember you get a tax deduction for education, I believe lifetime learning credit, which is like $2-4K a year I think, First you would do an MBA at night part time, NOT an executive MBA. Second take the first class or two, I wouldn't take more than 2 classes per semester, in the Fall of a year, let's say 2019, so then you get $3,500 reimbursed plus 2019 tax credit, which will probably cover most if not all of the two classes, then take next two in the spring, and basically those will all be covered by employer 2020 tuition reimbursement, and tax credit, so now you are in your third semester and just coming out of pocket now. I got my MBA at Rutgers University each class was about $3,000. Also you can see if you can get some courses waived, so you don't have to get the full 60 credits for your MBA, I think I got like 15 credits waived, so I only have to take like 45 credits. 6 credits a semester is 12 per year, and you are done in about 4 years, if you want to accelerate it, take a summer course, but the more you spread it out, the more employer covers. I would also try to end the MBA program in the spring so that is covered as well, so if you time it right and use the years to your advantage you can probably have almost half of it paid for between employer and tax credits/deductions.
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Re: MBA vs real estate license vs both?

Post by BolderBoy »

jaydub71 wrote: Thu Jan 24, 2019 7:49 am My general rule of thumb is that if you are going to stay in the same industry, it does not really matter what MBA school you attend.
I agree with this. You would be after the MBA education primarily, not so much the contacts that going to an elite (ie: expensive) school would offer.
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Re: MBA vs real estate license vs both?

Post by Abe »

A real estate license is not very useful unless you intend to sell real estate full time. I am saying this from experience. I have held a brokers license for at least 40 years. The same applies to investing in real estate. If you plan to invest in real estate, holding a license is not that helpful, and it is certainly not worth the time, effort and money involved to get a license. A common misconception is that selling real estate is easy -- it's not.
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anthonyphamy
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Re: MBA vs real estate license vs both?

Post by anthonyphamy »

Good morning,

I appreciate the ongoing discussion as I find these points very helpful in navigating my decision making for my future goals.

1. CTU business school is accredited by ACBSP. My company will pay 100% if I attend CTU. I'm not certain the value my company has for MBA with people in my field quite yet, as I don't know any of my coworkers that have done this track yet. However, I'm hoping the MBA would benefit my own knowledge (eg, help me understand business including my company better, see things at a wider scope, think of projects to improve my current department) as well as make the step into admin easier if I decide to go into that route.
2. I do plan on staying in the pharmacy industry. I would like to get into real estate investments, but that would be secondary to my main current career. I had no idea about the referral company option as a realtor, thank you for that information.
3. Thegame14, thank you for the breakdown using the 3,500 and education tax deduction. It sounds like more work than going to CTU, financial wise. I live in San Diego, and would like to stay, therefore my options for brick and mortar MBA schools would be UCSD, SDSU, and USD. All are better programs than CTU, but I'm not sure how much the higher rank/connections would benefit me if I plan on staying in the same career vs not needing to pay anything out of pocket with CTU.
4. Thank you, Abe for your insight. I don't think I would be able to sell real estate all the time. From what you said, I am leaning against real estate license just for the sake of real estate investments.

Again, so thankful I've came across this forum and people here.

Cheers,
Anthony
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anthonyphamy
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Re: MBA vs real estate license vs both?

Post by anthonyphamy »

jaydub71 wrote: Thu Jan 24, 2019 7:49 am My general rule of thumb is that if you are going to stay in the same industry, it does not really matter what MBA school you attend. If you are going to change careers, you need to go to a highly respected school. FWIW, I attended a top 10 MBA school because I was changing careers. Essentially you are paying for the career placement office, which I think is a worthwhile investment. If I was staying in my old career, there was no reason to pay the big tuition bill.

On the Real Estate license issue, many brokerages have a "referral company" where you can hang your license and avoid the monthly desk fees, etc. This is for people who have a license but don't plan on being active. The commission splits might be less favorable than a regular agent. You just have to do the math and see which one is better. Personally, I have a license and have it hung in a "referral company".
Jaydub71,

I wanted to ask you, what made you decide to obtain both MBA and real estate license? What are you using the real estate license for?

Thanks,
Anthony
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Re: MBA vs real estate license vs both?

Post by quantAndHold »

I know a number of people who went through SDSU’s executive MBA program. One of my old companies used to send our “high potential“ employees there. It’s a good regional program that’s well regarded locally. If you want to build your career in SD, this is a solid choice.

I had to google CTU, because despite growing up and going to college in Colorado, I had never heard of it. It’s a for profit online college. The degree is probably not worth the time spent on it, regardless of the price.

The last time I checked (a few years ago), a CA real estate license only required a single community college course (then tests, application, fees, working for a brokerage, etc). I could not say whether it’s useful for you, but the coursework isn’t much of a barrier to entry. It would be reasonable to take the course, then decide if you wanted to go ahead with licensing.
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Topic Author
anthonyphamy
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Re: MBA vs real estate license vs both?

Post by anthonyphamy »

GOod morning,

Agreed, the SDSU MBA program is a strong regional program. Unfortunately, the executive MBA program is being re-evaluated and didn't run a cohort for fall 2018, and looks like it's on hold.

Thanks for the insight for both SDSU and CTU.

That's a good idea regarding the CA real estate license. Seeing that it doesn't take too much to obtain, I'm thinking of obtaining MBA first, and then real estate license down the road if I'd like.

Cheers,
Anthony
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