College and Real Estate: What Do The Professors Say?

Last week I offered the tempered opinion that, after weighing the advantages and (numerous) disadvantages of attending college before pursuing a real estate career, perhaps it was more beneficial overall to take the money that would be spent on tuition and put it immediately toward living expenses.  Cashing your first paycheck as an agent takes patience and dedication, and I reasoned that keeping yourself afloat financially during this stressful period is tough enough without a $30,000 dark cloud of student debt hovering over your head.

But having said that, I concede that taking such a position forces me to talk out of both sides of my mouth–especially since I put such a high value on my own personal collegiate education.  The opinion of a single graduate (whose degree isn’t even real estate related), regardless of how reasoned it may be, can only mean so much when talking about such a life-altering decision.  And honestly, I don’t have the standing or self-confidence to talk down to institutions hundreds of years old, all populated by professors with intellectual resources I can only dream of.

So at Real Prospector, we decided to reach out to a few of these professors–who have dedicated their lives to the pursuit of academic development–to offer their side of the story.

Dr. Shaun Bond is a professor in the Department of Finance and Real Estate at the University of Cincinnati, which was recently ranked by Bloomberg Businessweek as the 14th best real estate institution in the world.  “Our program,” he says, “provides a comprehensive education in a broad range of important business areas with a special emphasis on the essential skills a real estate professional needs. It is important to remember that there are a wide range of job opportunities available in real estate and without a quality degree program it is very hard to enter areas such as corporate real estate, commercial real estate investment and finance, appraisal or commercial brokerage.”

Here he brings up a great point about the flexibility a degree can provide.  When debating the importance of a degree, we have an unfortunate tendency to narrow our outlook to simply agents alone.  Real estate is a broad industry, encompassing numerous facets and sub-facets that all require specialist skill.  According to Susan Wachter, Professor of Finance at the Wharton School, University of Pennsylvania, “Real estate is driven by information: On trends, on local market conditions, on future opportunities and risks. Degree programs can deliver the analytics and the wider perspective needed for a future in real estate.”

Jim Schilling, the Michael J. Horne Chair in Real Estate Studies at DePaul University, words it much more bluntly: “Where else can you gain insight into the principles and process of real estate development and investment?”

Universities can provide not just focus, but the also the breadth and scale to expand into these other, more hyper-competitive markets most industry newcomers simply don’t have access to.

Dr. Bond continues:  “Our students have access to great internship or co-op opportunities, networking and mentorship programs which further enhances their employability. A degree in real estate may not be needed if someone is only interested in residential sales–although increasingly the more successful agents and managers in this field have some level of business education. We are also seeing growing interest in graduate studies in real estate as people already in the field look to increase their skill set and deepen their knowledge and understanding of real estate markets in the face of a more complex operating environment.”

The importance of networking cannot be underestimated in succeeding in the real estate industry–and while taking the initiative to establish connections early out of high school can be a significant advantage, it’s hard to dispute that an academic setting gives one a better opportunity to establish those connections.  Diving straight into the industry offers a modest head start, but nowhere in the “real world” are you going to find an environment as open to making productive, lasting contacts as a university.  And while real world networks may be brief and fleeting (with the occasional one sticking only after continuous, strenuous outreach on your part), university networks flourish much more organically, with individuals already united by the simple goal of learning an industry that grows more complex by the day.

Whether that’s enough to convince someone to bite the bullet and sign the dotted line on their student loan depends entirely on the individual.  As I’ve already stated, I cherished my time as a student, and given the chance I would do it again–but I would never presume that my case should apply to the bulk of the American population.  The days of black-and-white answers are long dead, and the best we can do is commit to a path wholeheartedly, work hard, and hope the world looks upon on choices kindly.

To all those on the fence: you’ve got a big decision to make, and I’m sorry I can’t give you a more definitive response than that.  All I can offer is information, a positive word, and quick prayer.  God Bless you in whatever you decide.