The True Value Of A Real Estate Education

There is no tool more valuable to today’s real estate investors than a proper education. At the very least, a fundamentally sound real estate education is invaluable. At its pinnacle, however, a great real estate education can serve as the single most transformative “experience” an investor faces over the course of their career. In the hands of a diligent and hardworking individual, there’s nothing a truly great real estate education couldn’t do. It is, therefore, reasonable to assume you are no exception. With a good real estate education for beginners in your corner there’s no reason you shouldn’t be able to realize success on a larger scale.

What Is A Real Estate Education?

In its simplest form, a real estate education is exactly what you’d expect: an opportunity to learn about the real estate industry. It is worth noting, however, that while the concept is simple, the impact a proper real estate education can have on dedicated individuals can’t be underestimated. In the hands of diligent, hard working people, an intimate knowledge of the real estate industry is just as much of a tool as it is a vehicle to help you realize your wildest dreams.

Pursuing an education in real estate investing isn’t solely relegated to familiarizing yourself with the ins and outs of today’s housing industry; it’s an investment in your future well-being. Sure, a real estate education will inherently teach you whatever it is you hope to glean from one of today’s most lucrative career choices, but it’s simultaneously so much more.

Investing has become synonymous with some of the business world’s most lucrative real estate benefits, but they are only made available to those that are willing to work for them, which begs a simple question: should you further your real estate education? Perhaps even more importantly, should people that have no prior experience in the real estate industry commence their own pursuit of higher learning?

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Is A Career In Real Estate Right For You?

I maintain that real estate investing is an exciting career choice with unlimited opportunities for those that are willing to seize them, but I digress. There isn’t a single career path that would please everyone. I am, however, certain that anyone willing to give real estate a legitimate chance could find it both rewarding and worthwhile. If the potential of a lucrative career in real estate isn’t enough to get you excited, here are some other reasons you may want to consider a career switch:

• Tax Advantages: Tax benefits are the unsung hero of the real estate investing world. In fact, it’s easy to argue that the tax benefits of investing in real estate are second only to its profit potential. Mortgage interest deductions, depreciation and business write-offs can all help savvy investors save a considerable amount of money; money that can really pad a company’s bottomline. At the very least, real estate is a tax shelter capable of retaining a lot of your hard earned money.
• Cash Flow: Real estate investing, at least in rental properties, has become synonymous with cash flow. Cash flow is what is left over after you collect the rent and pay your mortgage, taxes, insurance and any repairs; it’s essentially your profit. And, as it turns out, real estate is capable of producing a lot of profit in the right hands.
• Hedge Against Inflation: Inflation is defined as a sustained increase in the general level of prices for goods and services. In other words, inflation will inevitably cause the dollar to grow weaker over time. Fortunately, for our sakes, real estate can hedge against inflation, as it has a tendency to react proportionately to inflation. As inflation increases, so too do rents and home values. Ultimately, inflation will contribute to an investors bottomline.
• Leverage Funds: It may not seem like it to the untrained investor, but being able to leverage other people’s money to buy a home is an incredible benefit. Leveraging money allows you to initiate more than one real estate deal at a time, as borrowing leaves investors more liquid.
• Equity: Equity is in no way guaranteed, but it is a significant benefit when it transpires. Every payment to a home’s principal increases one’s equitable interest in a property, which may as well be money in the bank.

Case in point: there are a number of reasons one should consider a career in real estate investing. Every single benefit associated with this particular career choice becomes more readily available to those that take their real estate education seriously. In other words, if you like the idea of having a hedge against inflation or the prospect of sheltering your hard earned money with impressive tax benefits, you’d be wise to delve into the real estate education basics. Nobody is going to do it for you, so it’ll literally pay to take your own education into your own hands. The more you learn about investing, the more likely you’ll be to realize success.

What Does A Beginner Real Estate Education Look Like?

Pursuing a real estate education is nothing less than an impressive feat; it takes a great deal of mental bandwidth, hard work and perseverance. In fact, simply making the decision to continue or further your own real estate education is an accomplishment, in and of itself. Having said that, the decision to accelerate your real estate investing education is merely the beginning; once you know you want to learn more, you must become proactive in your pursuit of knowledge.

Instead of getting lost in the myriad of paths that will inevitably open up to you once you decide to learn the intricacies of the real estate world, try narrowing your focus. There are a lot of things you can do to expand your educational efforts, but many people tend to stretch themselves too thin at the onset. Instead of pursuing every opportunity, however, try limiting yourself to a few things that can help establish a proper foundation to build off of. More specifically, focus on the things you can control, not the least of which include the following.

Identifying Goals

When it comes to real estate education basics, there’s nothing more fundamental to the onset of one’s career than setting a few goals. Nothing, for that matter, will guide you on the path to realizing a higher level of learning than knowing what you want out of the investing industry. You can’t possibly know which direction to choose if you don’t know what you are looking for. Goals, therefore, are the catalyst for any proper real estate education; they will dictate everything from the subject matter to the pace you take it in. If for nothing else, your pursuit of knowledge should steer you directly towards your goals.

What do you hope to gain from real estate investing? Are you more inclined to flip homes or buy and hold? Do you prefer a more passive investing strategy? Whatever your goals are, identify them as soon as you can; they will act as a roadmap for the rest of your career.

Setting A Budget

Today’s most prolific investors already know it, and it’s about time you did, too: budgeting is a pillar of any fundamentally sound real estate education. Real estate is a numbers game, after all; the more you are able to work with the numbers that present themselves to you on a daily basis, the more likely you are to realize success. Whether it’s analyzing a deal’s after repair value (ARV) or buying office supplies, working within a budget is instrumental in running a successful real estate investment company. It is the numbers themselves that will dictate whether or not a deal is worth pursuing; the sooner you learn that, the better.

I maintain that a proper real estate education is founded on several pillars, not the least of which is knowing how to budget accordingly. As such, there’s no reason you shouldn’t be able to budget before you start investing. Take it from me, you’ll want to have a good idea of how to track your finances before you invest a single dollar, so start familiarizing yourself with a proven budgeting system as soon as possible.

Choosing A Niche

As I have already alluded to, it’s quite easy for new investors to stretch themselves too thin at the onset of their careers. Real estate investing is nothing, if not a double edged sword: the number of career paths awarded to savvy investors can be both a positive and a negative, depending on how you approach them. While some people are perfectly capable of exercising each option at their disposal, others can be overwhelmed by the amount of information the industry requires you to know. That said, I recommend narrowing your real estate education to a specific niche, at least until you are comfortable branching out.

Do not assume that you need to know everything the investing world will require of you at the beginning of your career. Instead, learn as much as you can about one of the industry’s many niches: wholesaling, flipping and passive income — just to name a few. That way, you’ll at least be able to follow through with an exit strategy in a single field. In my personal opinion, it’s better to know everything about a single exit strategy than to know a little bit about every strategy, especially if you are new to the industry.

Analyzing Your Market

To this day, one of the best things an investor can do to increase the value of their real estate education is to learn how to listen to the market. That’s not to say a good investor has to predict the market, but rather that they need to know how to work with what it’s giving them. No advanced real estate education — or a beginner’s education, for that matter — is complete without being able to analyze the market. From the moment you get started, you will not only need to know where to look for data, but also how to analyze it, interpret it and apply it.

Anyone can read market data; it’s on just about every real estate website, but a truly great investor can interpret the data in a way that helps their business. It is worth noting, however, that the ability to interpret data doesn’t transpire overnight, but instead over years of practice. The sooner you can start learning how to interpret said data, the better.

Are You Ready To Pursue A Proper Real Estate Investing Education?

Anything less than a full-fledged investment in your real estate education is an indictment on your professional future; that, I can say with certainty. The importance of your own knowledge, as it pertains to the investment industry, can’t be underestimated. It really is true what they say: knowledge really is power, and real estate investors are no exception. The more you are able to glean from a proper real estate education, the better off your career will be, but I digress. The pursuit of knowledge isn’t to be taken lightly; not in this field. You must crave it and strive to continue learning something new everyday. Only then will your real estate education offer you what you truly desire: success.

Key Takeaways

• A sound real estate eduction is the single most valuable tool an investor has at their disposal.
• It’s never too early to start working towards an advanced real estate education.
• With the proper real estate investing education, anything is possible.