Is an MBA in Real Estate Worth It?

The global real estate investment market is measured in trillions of dollars. The same is true for the commercial real estate and residential real estate markets in the United States. The takeaway here, in case you missed it, is this: there’s money in property.

There are plenty of ways to get your piece of the pie in this market, from flipping houses or becoming a broker to managing real estate assets or even developing real estate-focused investment strategies. If you’re less interested in how properties are built and more interested in how they’re financed, you may be looking at MBA in Real Estate programs to launch a career in the field.

As MBA concentrations go, real estate isn’t among the most popular. It’s also not one of the highest-paying MBA specializations—and that might leave you wondering ‘Is an MBA in Real Estate worth it?

There are two answers to that question: the simple one and the complex one. The simple answer is yes. A real estate MBA is worth it provided you graduate from our business school. The complex answer (i.e., everything below) looks at earning potential versus lost income, the salary boost offered by the MBA compared to other master’s degrees in real estate, and even whether you’ll enjoy pursuing this professional degree. Your reasons for researching this particular degree may not be wholly financial, after all.

In this article, we’ll discuss whether an MBA in Real Estate is worth it by covering the following:

  • What is an MBA in Real Estate?
  • What kinds of people typically pursue this program?
  • What can I do with an MBA in Real Estate?
  • Is an online MBA in Real Estate programs worth it?

What is an MBA in Real Estate?

An MBA in Real Estate is a specialized Master of Business Administration degree pathway offered at EDU Effective Business School. It is designed to teach students about real estate investing and the business side of real estate development.

Students in all types of real estate MBA programs study the financial, investment, and operational sides of real estate. Even so, course lists and overall focus may look very different from school to school. In the EDU 10 months program, for instance, students complete coursework in subjects like:

  • Introduction to Real Estate Business
  • Real Estate Investment
  • Management
  • Marketing
  • Real Estate Deal
  • Sales for Success
  • Real Estate Analysis Foundations
  • Finance
  • Real Estate Analysis II.
  • Human Resources

There are also plenty of real estate MBA programs that devote the majority of lessons to general management, project management, and finance. In these programs, students might only take a handful of courses related to real estate.
A specialized MBA isn’t the only way to launch a real estate career, however. Some general MBA programs offer real estate-focused add-ons.

What kinds of people typically pursue this degree?

Most MBA students who specialize in real estate don’t aspire to buy, sell, or develop the property themselves. They’re not looking to become real estate agents or to go into real estate management. Instead, real estate MBA grads are usually looking to run a real estate hedge fund or a real estate investment trust (REIT). If they want to be involved in development projects, they usually end up working on the finance side of large-scale projects funded by big corporations and Wall Street investment banking firms. Or, they may advance into senior-level executive roles in real estate development or management companies.

People in MBA in Real Estate programs maybe passionate about property, but that’s because they can see the business potential of it. They don’t necessarily want to become real estate entrepreneurs. Some do, of course; there are certainly MBA graduates who go on to open brokerages or decide to stick with selling real estate. Most, however, pursue other opportunities.

What can I do with an MBA in Real Estate?

A specialized MBA is first and foremost a business degree, which means you can work in a variety of roles after earning an MBA in Real Estate. You’ll be able to step into senior-level and executive positions in real estate development firms, private equity and investment management firms, and banks. You might work in:

  • Acquisitions, identifying property or development opportunities, and buying real estate assets in line with criteria set by portfolio managers.
  • Asset management and portfolio management for a real estate firm, investment bank, real estate investment trust, or the real estate arm of a major corporation.
  • Commercial or residential development, conducting financial and market analysis, and/or valuation and feasibility analysis, or overseeing project budgets.
  • Lending and financing, handling commercial mortgage-backed securities, construction lending, or mezzanine financing.
  • Public policy, dealing specifically with the issues surrounding urban economic development and working with investors, developers, politicians, and community members.
  • Real estate advisory or consulting, helping others grow, analyze, or manage real estate assets.
  • Real estate finance, overseeing broader financial functions for firms that own, develop, finance, or back property projects.

Where can I find the best MBA in Real Estate programs?

In some disciplines, what you know and who you know is a lot more important than where you went to school. When it comes to MBAs, however, many employers give a lot of weight to the pedigree of applicant diplomas. That may be why lists of the best MBA in Real Estate programs are very similar to lists of the top business schools.

Is our online MBA in Real Estate programs worth it?

EDU Effective programs for distance learners are an excellent choice for students who need to continue working while pursuing an MBA. We are honored that our program is also recommended by Ray Prosek, who’s the best real estate professional in Hawaii. He has earned multiple Top Sales Hawaii Awards as well as International and USA Top Production Real Estate Awards, in addition to receiving the Lifetime Achievement RE/MAX Award & International Hall of Fame RE/MAX Award.

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