Is an MBA worth it for Real Estate?

You already have an MRE and are in acquisitions. Maybe if you were able to go to an M7 school, but is it really worth it at this stage in your career? The pay isn't going to be substantially higher unless you're severely underpaid already, you're already in the industry, and you're gonna sink $200-$300k into the degree and lose 2 years of progression.

The only reason it would make sense to go back to school would be if you were at a company that required it for advancement and was going to pay for you to go.

What about an MBA in an executive format where you still work and attend the program (applying the information on the job as you progress through the degree)?

Additionally, what does the educational profile of your boss and the c-suite of your company look like? MBA's?

Not sure an MBA would add much value. You already have graduated from a decent masters that is well recognised in the UK market. If you're trying to progress to mega funds networking would probably be the most cost-effective and efficient way to get there. Keep an eye on funds that are deploying cash in assets for which you may have a decent expertise and reach out to them to see if there are potential opportunities. I have met many people that have succeeded to move from middle market to mega funds and if my memory is good: none of them has an MBA.

Trying to go a different route here, an MBA could potentially add a lot of value if you’re placed perfectly. Do your seniors / VPs / MDs have an MBA? Traditionally if you worked at a huge bank and established AM on their real estate side (think BX, BlackRock, Starwood, Apollo etc.) an MBA could be helpful. IMO

I am going through the similar thought process at the moment.. haven’t seen many MBAs in real estate but at the same time I thinking that it might be helpful later on as it is a good opportunity to expand the network (which is so needed at more senior level) and get a shiny name on my CV (if I manage to get into MBA top 7). I think ppl in real estate still care a lot about the brand names etc so maybe it is a way to get some more validation.

I have an MBA from a highly-regarded program in the US, and while I can’t speak to whether my experience entirely applies the UK side of things, I’m happy to give my two cents.

Starting with the reasons against getting your MBA:

-You already have a MRE from a very solid program and there’s definitely an element of diminishing returns when it comes to an MBA for you relative to someone who does not have any sort of graduate degree.

-You’re not exactly going to learn much relevant real estate-specific knowledge in any MBA program that you haven’t attained already. An MBA will definitely give you more holistic knowledge around actually operating and managing a business, but if that’s not of interest, there’s not much new knowledge that’d be helpful.

-As others have mentioned, you’re basically sacrificing two years of (non-insignificant) income. For some people, that’s no big deal. But if you have serious financial commitments like a family, it definitely becomes a fairly large issue.

As for the reasons in favor of an MBA:

-If you go to a top school, chances are that the vast majority of your classmates/friends are going to be far, FAR wealthier than your average joe (if they already aren’t). People always talk about how great MBA programs are because they provide “a network of people who can help get your foot in the door at various firms.” You know what’s even more helpful? Having no shortage of friends with “Fuck-You” amounts of money (either from their overpaid jobs or from their family’s generational wealth) and very few contacts besides you if they want to invest in the CRE world.

-For a variety of reasons, elite MBA institutions create a very elitist and critical culture in their alumni when it comes to evaluating other people. I have been a part of plenty of hiring conversations where even “Good” MBA or MRE programs are looked down upon (at best) or outright mocked (at worst). More than anything, it usually follows a theme of “Wow they weren’t smart enough to get into a REAL program? I heard this place they went to doesn’t even require a GMAT!” and “They think they can impress us by attending a program that anyone with a pulse can get into?” Ultimately, it’s not a matter of what you know, but a matter of credibility. And for a lot of snobby C-Suite MBAs, there’s no better sign of credibility in an applicant than a degree from their alma mater (or a more highly-ranked institution).

-Life is not all about squeezing every last bit of income out of your working years. Full-time MBA programs are fun, you’ll make plenty of friends as opposed to simply “networking contacts”, and you are more or less getting a two year vacation that rewards you with higher pay and a higher career ceiling than you had before.

If you want to work at BX, Brookfield, Hines, TCR, Related type firms / are a career switcher, and you can get into HSW/Columbia, maybe throw UNC/UVA in there, then yeah. Otherwise no. Also kind of depends on undergrad, if you went to Harvard a prefstige focused place like Hines/Related/Tishman would take you. If mommy and daddy will pay for it then it’s a no brainer. For me, I wasn’t a career switcher and got promoted to a post-MBA role at an institutional firm so it stopped making any sense at all. Plus I’m too regarded to get in to HSW. 

MSRE is enough