“There is no more profitable investment than investing in yourself. It is the best investment you can make; you can never go wrong with it. It is the true way to improve yourself to be the best version of you and lets you be able to best serve those around you.”– Roy T. Bennett
Ah, Spring is here and as usual the creativity is running through The Thrive Vine. Today’s topic is near and dear to me; mostly because this is the approach I took with my educational journey. I racked my brain for years wondering if I should go for my Master’s Degree (who knows someday I still might) but in the short term I opted for the not so conventional substitute of getting my Real Estate License.
Overall, getting my license has paid off. In my best year so far I was able to make 32k in commissions while working part time as an agent (if anyone wants to know more about how I did this I can certainly write a blog on this). Being in real estate has been a really fun and exciting path, and I think both short term and long term it has been a better investment than going for my Masters would have been.
Usually when I talk about getting a real estate license most people out the gate protest “I don’t want to sell real estate” or “I’m not a good salesperson” well that’s perfect! Because in today’s blog I’m going to explain why getting your real estate license isn’t just for selling houses, it’s just down right a more practical decision than going for a Master’s Degree. Here are three reasons why you should substitute your Master’s Degree for a Real Estate License:
Practicality – In the opening of this blog I mentioned that getting your Real Estate License is more practical than getting a Master’s Degree. Why do I feel this way? Because whether you are going to be a homeowner or renter I’m about 100% positive you’ll want to know what your contract/lease means. We have to look at buying a home as being one of the biggest financial decisions of our lives (aside from college) and just having the knowledge of different types of loans, the options you have, and how the process works is beyond beneficial. You’ll never have to worry if someone is looking out for your best interest; because you’ll have the tools necessary to do so.
Supplement Your B.A – When driving myself crazy about whether to go for my Master’s Degree or not I started to ask myself some introspective questions, such as: What will a Master’s Degree do for me? Is it worth going into more debt? (this was a big one for me) and possibly what is my goal in my career? The answers to these questions I still have with me today.
I believe for most, a Master’s Degree ultimately means a larger potential salary, faster career advancement, and makes you certainly more marketable to employers down the road. Yet when I thought about it; these same qualities are what a Bachelor’s Degree was supposed to accomplish 20 years ago. So 20 years after I receive my Master’s Degree, would it be obsolete? More importantly, would I be obsolete? Could I be dispensable by a younger generation coming out of school with PHds? All of these questions came in to play and aided my decision. Instead of spending the tens of thousands of dollars on a Master’s Degree I went towards my Real Estate License, which including books and a 2 week class, was a total of a thousand dollars.
When thinking about pursuing a real estate license many people assume you need to sell real estate. Although that’s what it’s most commonly used for, you can also use the credential to supplement your Bachelor’s Degree. How you might ask? Well think about real estate development companies, commercial real estate investors, property management companies, real estate investment trusts, even healthcare such as senior living companies, etc… any company or non profit that wants to expand, has a targeted demographic, and wants the best success for their business will have a need for someone who knows real estate.
Personal ROI – I lastly wanted to talk a little bit about Personal ROI (return on investment) between a Masters Degree and a Real Estate License. Let’s look at some numbers: Say you spend 20k on a Master’s Degree and get a job for about 70k-80k, if you have industry experience, or possibly 50k-60k if you don’t have any industry experience and just your Master’s Degree. If you’re coming out of school with debt, you won’t see the full return on your investment until you pay off your debt completely. On the other hand, real estate offers different kinds of Personal ROI. Keep in mind your total investment of your license is about a thousand dollars; so even if you sell one home you’ve made your money back on your initial investment.
But say you don’t want to sell houses, or choose to not, use a real estate license to supplement your career. Then how does getting a real estate license make sense? The answer is investing. Simply put, if I didn’t have my real estate license I probably wouldn’t have gotten into real estate investing as fast as I did. It was because of my real estate license that I was able to see properties that hit the market first, meet mortgage lenders and get great rates on my personal mortgages, and additionally meet wonderful people and form relationships along the way. As I’m sure you can tell, I feel getting a real estate license has the potential to have tremendous Personal ROI.
Conclusion – This blog admittedly a tad biased in favor of substituting a Master’s Degree for a Real Estate License. My goal here is not to deter anyone from pursuing their Masters, but really bring awareness in making a conscious effort to explore what additional credentials will do for you, and most importantly is it worth the debt you’ll take on. Furthermore think about your personal ROI, and hopefully, the joy and personal fulfillment a Master’s Degree might bring to you.
I sincerely believe having a real estate license is such a useful tool, to not only build wealth; but make connections and form relationships as well. What do you think? What does a Master’s Degree mean to you? Would you ever consider getting a real estate license? Let us know in the comments below!