All, I am debating the merits of doing a MSRE/D and the opportunity cost associated with it. Currently an associate at a small-medium sized REPE shop and thinking about doing a MSRE/MSRED with a fall 2022 start, which would be the end of my 3rd year of work experience.
I think given my current position I don't necessarily need another degree to jump shops/pivot to credit/anything else, but I think a full-time grad program would be fun and would help with branding to some extent. Given the massive expense and opportunity cost (lost income) of doing that, really struggling with how it makes sense for people.
Would love to hear current thoughts on why it may be/may not be worth it from people who have experience or are in similar situations.
Also I would probably only do it if I could go to a top 3 program and get some amount of aid, thats the only situation that feels like it could be worth it.
Stats are:
3.85 ug GPA from a top 3 liberal arts school, STEM degree with publications
haven't taken GMAT/GRE but aced SAT so assume will do well
3 years exp REPE (acquisitions and debt fund) upon starting program
My perspective if you are already in real estate then no point, you’re better off getting a top mba or not wasting the time/money if that’s not a possibility. I went to one of the schools undergrad that has a top 3 msred program and I literally taught these mid-20 somethings as a TA, the msred students would be in the running for the same positions as the undergrads and would get passed up. They frankly weren’t the best and brightest and really struggled with concepts that undergrads would get down in an hour before exams or projects were due.
If you’re already in real estate you won’t learn anything new, at that point it’s only about building a network or getting a name on your resume and on both of those points the mba beats out the msred.
Lmao some angry MSRE students shitting on this one. Can’t handle the truth
So, a question before I would dare to say what I would do in your shoes..... Why do you want to quit this job?
Personally, I'm not a big fan of quitting jobs to back to grad school unless it is very very obvious that this is the right move (usually a "jump"). Leaving a real estate job to get another real estate job seems risky and not necessarily worth it.
As the above said, my gut says if you are going to quit a job and go full time, might as well go top MBA route. You know real estate, thus the coursework of the MSRE/D is of much less marginal value than someone looking to pivot into the industry.
Still, explain why leaving is desirous and I can give better thoughts.
Current shop underpays somewhat and has been struggling performance-wise, also want to go to a larger shop in general and relocate out of current city which is not possible without leaving. Have some cultural issues too... just in general feels like I would probably leave in fall 2022 either way so considering grad school instead of recruiting again right away.
Got it, well I would say if you can get a good score on your GMAT/GRE, you should have a strong profile for a top MBA program. I would probably look at that route ahead of MSRE/D (assuming you get in). Not sure you will see much in the way of aid packages either direction, not so common with grad school (at least MSRE/D and MBAs, different for research MS or PhD programs).
So I guess, go big or go home would be my first thought.
Personally, I think you probably would stand to benefit greatly by getting a grad degree if you really want to level up in institutional real estate circles, and have cross market appeal. It's a competitive dynamic... more and more people get grad degrees to day, thus you almost need one to compete on relative basis BUT the marginal/advantage you get from one declines on relative basis as well. Is what it is, so earlier you go, earlier you get the benefits.
If you are going to move markets, I'd advise going to schools in or near that market, maximizes ability to network/intern/job hunt while in school.
My only hesitation with MBA is that going full time for 2 years just feels like excessive opportunity cost, and going part-time on weekends and nights feels like it isn't worth it because you don't get the experience you're paying for. Something to consider I guess...
Totally get what you mean, there are one-year MBAs and one-year MSRE/D programs, so you could focus there. Not sure what formats are in the M7 or M15 realm of MBAs but worth investigating if that is major factor.
This may sound redundant... but it's all about what career you want and to what extent such a degree is really necessary or not. There are lots of tracks and firms you can pursue w/o going back full time. It's just a matter of check the box for career security/max flexibility, a part-time MBA (or MSRE/D) could be fine in all reality.
What makes this analysis difficult, is you can't measure the opportunity cost of not having such a degree in say 3-5 years. The cost of the degree, housing/misc. cost, and lost wages for the immediate are easy to estimate, the post-grad realization takes a lot of guessing.
You could frame this as an investment decision, you know the upfront costs and timing, just need to think of reasonable estimates for post-grad earnings and take guesses at discount rate (or reference return). Not that this is how such decisions should be made, but quantifying it may make it easier to see it in relative terms (clearly, you also need to "guestimate" life/career w/o doing a grad degree and analyze the marginal difference, fun stuff if you nerd out in this stuff!)
Same thoughts as you with the same YoE. My employer even offers generous tuition reimbursement (enough to pay all of it if part time) but I’d have to remain with the firm for another two years after that and the only reasons I would get one would be to “level up” for buyside roles and have a known school on my resume compared to my non target UG.
But the dilemma I struggle with is that I already know real estate and the parts I don’t know wouldn’t be taught in a msre course. Plus both my job and yours are the ones graduates with these degrees would target. Legit left my last job and the role was filled by a Schack student so it’s like why would I do that to myself? Also, at this point with a decent network, one should be able to at minimum lateral to a client/competitor or best case gain a step in title along the way. That’s my thought process right now and if I actually see or feel the need for a grad degree, I’d realistically go the MBA route.
Yeah that's my thinking, we're kind of already at the MSRE exit opps. Also if you look at avg. comp of recent grads from the programs its only like marginally above what I'm pulling in now. I think MBA is probably better as a long-term accretive value which would be hard to put a price on.
Analyst 3+ in RE, I think that you are spot-on with your approach and analysis.
Experience, track record and strong relationships (built by working together and across the table in a constructive manner) have gotten people with even a marginal formal pedigree to the very top of RE more times than we can count. It’s almost an industry cliche at this point.
You already have your foot well past the door (hardest part for many) and are progressing to the next level on your own without an mba/msre-d (evidencing hard skills and network utilization).
There is a lot you could do with that $150k-$250k (let alone if it was debt serviced which equals more like $375k total and makes you significantly more fragile, less agile if your income become interrupted or unstable for any reason during that 20 year loan period, or if you want to join a colleague in a more start up type venture) and those two years of focused time where you could have been part of or participating in the re market, growing at your company (cannot be gotten back).
Can someone offer advice? It’ll be very helpful to hear your viewpoint. What would you advise someone in the situation below:
2 jobs in real estate after undergrad and have negative experiences in both. Don’t really want to work anymore for someone since I did not like my experiences being on a leash sitting down behind computer all day, not learning a lot.
Do I stick it out in my current job and study for GREs and apply to MSRED like a
Columbia(even though I already studied real
Estate in undergrad) or do I apply to other jobs ?
I’d rather not apply to another new since I’ve been building my credibility at current firm. Hard to just keep hopping to new jobs.
Is going back to school and spending 80k the best route for someone who is lost like me? Should I quit? Go do an MBA even though I want to stay in real estate? Thoughts?
How would going back to school solve your issues of not wanting to work for someone? Honest question
And are you even ready to go on our own/do you know what you want to do? That's what it seems like you want but do you think you have enough knowledge to do so? I could see how grad school could help, but I don't see it being the answer here.
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