So, I live in the Washington, D.C. area, which has a cost of living about 15-20% below New York. I have an excellent job at a top company working in commercial real estate. My dilemma is this: I think I might make too much money to justify going to business school. I'm turning 25 in a few weeks. Planning on entering business school in 3 1/2 years (UVa-Darden and Georgetown are my only 2 choices due to my horrific undergraduate grades--mid 2s--and geographic location).
1) I make about $90,000/year in combined salary and small bonus at my job. This is not likely to increase more than a few grand over the next few years (markets look VERY bad going forward still; I'm lucky to have a job).
2) I'm starting a new job in March PART-TIME that has an 18-month life (so this may not come into play, but I may have something else lined up in 3 1/2 years). I will be managing a real estate fund. Rough annual comp is about $100,000 for this.
3) I develop infill real estate on the side with my own money. Average annual investment comp is about $130,000 before taxes.
Basically, I only want an MBA to sell myself to prospective investors in the future so that I can raise money to manage real estate portfolios (like, ENORMOUS funds--not the crap I do now). I guess the question is, can I justify foregoing $300,000+ in annual comp for 2 years at Darden or Georgetown? I'm curious if an MBA would be the x-factor that would combine with my experience to allow me to raise these funds. I'm not convinced that it is, or that it would at least be worth the ~$800,000 investment.
Curious if there are any thoughts on this situation.
How about weekend MBA?
what about those hot independent MBA women up for grabs???
Eh, that's the issue--I really won't have time to do my job, real estate projects, management of funds, and involvement in politics while doing a weekend or part-time MBA.
I guess I proposed kind of a false dilemma--I could probably still manage a fund while in business school full-time, so that saves $100,000 in comp. Also, if I did business school parti-time, I could probably still either work on my investments OR the fund. So I guess I'd actually only be foregoing $200,000+ in annual comp. I guess it still seems overwhelming. I already feel overwhelmed. I'm just not sure getting an MBA makes sense anymore since in the last several months my life has been changed substantially by some lucky successes.
Do fund managers need the educational credentials to raise tens of millions?
PT MBA isn't really worth it unless your company requires it. It sounds like you have a lot of money coming in and a huge network. If you want to go corporate then maybe an MBA would mean something, but right now it seams like you have enough irons in the fire.
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i think you should keep cranking
First of all, you dont make that much money. Most guys in finance/RE forego a lot more in comp than you would by going to b-school. I for one would have to give up a portion of my unvested carry if I left early which is more significant than just considering my annual comp. If your ultimate goal is to raise a fund I would strongly suggest that you pursue an MBA and continue to develop a track record. UVA/Gtown have solid bschool programs but obviously lack the network and prestige associated with schools like H/S/W which are important in fundraising.
Good luck.
First of all, you dont make that much money. Most guys in finance/RE forego a lot more in comp than you would by going to b-school. I for one would have to give up a portion of my unvested carry if I left early which is more significant than just considering my annual comp. If your ultimate goal is to raise a fund I would strongly suggest that you pursue an MBA and continue to develop a track record. UVA/Gtown have solid bschool programs but obviously lack the network and prestige associated with schools like H/S/W which are important in fundraising.
Good luck.
He means a lot of money for his 2.something
Nevertheless.
No chance in Hell you clear $130K developing infill re ON THE SIDE in this market. I call bullshit on you.
Umm, do you have any idea what infill real estate in the D.C. suburbs is like? That is the low end anyone should be accepting to develop inside the Washington, D.C. beltway. My first deal is set to close in September and is poised to make $130,000 on the low end. Land is cheap, financing is hard to get for construction--anyone who can get the financing can make a lot of money. Good luck getting financing without cash though.
By the way, if you care that much, private message me and I'll prove it to you offline.
If you're good at networking, do it. There are people foregoing more comp than you to go to b-school (although usually Harvard/Stanford).
So a few of these comments are along the lines of "there are a lot of people who forego more compensation than you to go to business school." Yeah, I get that, but a lot of those people are in NYC. Whatever figure I quote needs a 20-25% premium added on due to lower cost of living. But I do see the point.
Nevertheless, assuming my ONLY options are Darden and Georgetown (which is true--I have zero chance at any of the top 5--again, GPA in the mid-2s and I want to stay local preferably), does it make sense? If I fell into Harvard, yeah, almost certainly, but Darden or Georgetown?
I never understood the obsession with B-School in IB circles. I know so many people who went to top B-schools over the past couple of years and are now still struggling to find a job. If you don't get into Harvard or Stanford you shouldn't even bother.
Not to knock you SAC but your perspective is very short-sighted. Careers are not built over the course of several years. Im not going to argue the value of a MBA from an M7 vs. a top 20 but to say that you should only go to H/S or nothing at all is frankly retarded. With that said, I wouldnt go to any other school outside H/S/W/Col/Chi (maybe NYU) given my background, age and future goals.
To the OP, I thought my response above was pretty on point given that I dont know you personally. Financial opp cost is but one consideration when making a decision to attend b-school. Having been through various rounds of fund-raising I can assure you that network and track record are the most important pre-reqs. An MBA will add credibility but I dont think it will be the x factor that you are looking for. From a personal development perspective, I think an MBA would make you a better fundraiser and fund manager down the road. Tough call. Im in a similar situation. Good luck to you.
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