Invest in education?

[alexh]

I know there are many ways to integrate your education background into your real estate career.
What if you want to integrate into your real estate career some education?

When i break it down i see 2 important aspects to real estate.

- the business side
- the construction side

the business side would include the research, the math, the communication, networking, negotating .....

the construction side : knowing materials, tools, understanding blueprints, plumbing, electrical ....

I understand beeing well rounded in both aspects is ideal.

Heres my attempt to get some answers
I am lacking some knowledge and understanding on the construction side, like understanding key elements of a concrete foundation, knowing how to do a self appraisal, understanding framing, knowing how to distinguish quality/priced materials from high end materials, understanding basic architecture. (roofs, walls, floors)
Most people would tell me this is learned through experience, or not needed because you hire other people to do it. What if i wanted to learn these thing through some specific courses.

What kind of classes are available out there, could offer some overall education about the construction side. Without devoting yourself to a full time program. Are there architecture classes for amateurs? Carpenter classes for amateurs ?

I know some colleges offer carpenter courses, but it is 4 years full time.

Any courses out there that could be usefull to an investor looking to understand the fundemental construction of a commercial or residential building, land division, water and septic systems, construction and zoning bylaws, without beeing an ingeneer?

Finally what kind of classes helped you the most at beeing sucessful in your real estate career?

thanks all.

 

[CarlaJohnson]

You are taking an interesting approach. It sounds like you would like to be familiar with ALL aspects of the business. If you are just starting out, you may be biting off more than you can chew. You may also be putting the cart before the horse.

The business side of investing is huge. You need to know how to analyze the number of a property. You need accounting skills & tax knowledge. You need to be familiar with the landlord/tenants laws. You need to know how to negotiate placing offers. They are full of surprises. You need to know how to navigate the banking world and make sure you are given banking products that help you build your business. Most mortgage brokers take it one property at a time & that can slow you down. You will need marketing skills You will need to know either how to manage tenants yourself or how to choose a good property manager. You will need to know what to expect from a good property manager and learn how to navigate your relationship with them.

Regarding the construction side, I grew up in the construction business and am married to an engineer who specializes in developments. I wouldn`t even begin to pretend to know anything. There are unlimited variables in the physical side of this business and the laws are intricate. Two similar situations may actually require two very different approaches. There are even more surprises on the physical side of this business and poor decisions can be extremely costly & profoundly time consuming.

Determine and prioritize your goals. If being an investor is your top priority, join REIN and get the best education regarding investing in real estate that there is in Canada - and probably anywhere else. As you start to purchase properties, you will have many learning curves to navigate. Take each one as they come & learn from each situation you encounter. As you can see from the number of posts on this site, the learning is endless.

Determine what your overall goals are & what you want to be best at, then surround yourself with experts you trust and let them guide you.

 

[Dan_Eisenhauer]

Alex, Carla raises some good points. Eat your elephant slowly. Trust us! You have a HUGE elephant in front of you.

I have been in various segments of this industry for 30+ years. I have never had any courses in construction, but I built houses and participated in the development and construction of an industrial park and warehouses. I learned from those around me.

If the contstruction side interests you, are there continuing ed courses available in your area? Some timber framers offer courses on building timber frame homes. Buy books on the National Building Code, home construction, or carpentry. One I bought and refer to frequently is a Reader`s Digest book on home repair. Check your local book store for them. Watch "This Old House", or "Hometime", or "Holmes on Homes", or any of the renovating shows. They are chocked full of great tidbits.

However, my emphasis was on marketing and property management throughout my career. There are many courses and programs that will help you there. The Real Estate Institute of Canada, The Appraisal Institute of Canada, The Building Onwer`s and Managers` Assoc (BOMA) all offer course. Check UBC Sauder School of Business which has a myriad of real estate courses.

A metaphor that has been used before is that you do not need to be an auto mechanic in order to drive your car to the store. Likewise, you do not need to know all aspects of the real estate game in order to do well in it. Slow down. Take a deep breath and decide which area interests you the most and then go about acquiring that knowledge.

 

[EdRenkema]

QUOTE (alexh @ Feb 7 2009, 05:23 AM) Finally what kind of classes helped you the most at beeing sucessful in your real estate career?thanks all.


I can say firsthand that Carla and Dan are experienced and level headed investors and they bring up excellent points.

Judging from your post the general theme is to be an experienced investor. You don`t need to be an expert on any one thing except your own finances and setting your own limits. I am the least technically gifted person out there yet I am buying properties and learning as I go. Mostly because a few years ago I stopped saying `I can`t` and started saying How Can I?
Keep it simple, surround yourself with experts, a good investment property realtor is the best place to start, they will have the further contacts to refer you to.
Decide what type of properties you want to invest in and become an expert on those, just don`t get caught up in the rapid appreciation scenario, invest for cash flow - period.
Read Real Estate Investing in Canada and any other books you can.
REIN is more than a membership it is a learning progression, so there`s a course that counts huge (Quickstart -ACRES now- is merely a class within the course).
This forum is a great place to learn from investors on the ground and plenty of other sources are quoted here, any questions just put it out there.
Good luck.

 

[alexh]

Thanks for all the replys.

Ill be joining REIN soon. And taking it from there. I do have some knowledge on the business side. Ive purchased my first income property in Edmonton, so far so good. Ill be applying for a government grant to build a secondary garage suite as well.
I own a business and understand the accounting side of it. Revenue, expenses, negotiation, analysis.

Further more, ill try digging into some construction and carpenter programs at the university and college continuing ed. And decipher which ones can be broken down to better serve the purpose of real estate investing.

Thanks thanks thanks

 

[Dan_Eisenhauer]

Check out REIC, Alex. You can take most, if not all, of its courses at home and/or online. Most UBC courses can be done through correspondence. The UBC real estate courses are rated amongst the top available.

But, as Ed suggests, get the REIN system under your belt first. That will give you the foundation on which to grow your knowledge. You will also have a better understanding of the information in those courses.

Now, having said that, there is no reason for taking university level courses to do well in this business... other than to increase your own knowledge level. That is the reason that I took all the courses I have done over the years. I took PM courses when I developed a PM problem with my first purchase. Rather than deal with the issue professionally, I ran from it by selling the property. It was then that I knew I needed to learn more, and I eventually became a Certified Property Manager. With several courses in common, it was just a course or two more that lead to my becoming a Fellow of the Real Estate Institute.

My point is that I did not set out to get the education first. I let my work experience dictate what I needed in the way of knowledge. My construction experience came from working as a VP of a small development company, primarily as a PM. From that I figured I could build a few homes, which lead me into overseeing renovations projects.

 

[dwmiller]

A quote from Robert Kiyosaki: "Don`t work for money; work to learn".

Find a mentor (possibly a REIN member) and offer to work for them for little or no money. You can then learn from that person`s experience.

Learning first hand how things are actually done in the real world can be the best education of all.

My $0.02.

 

[alexh]

QUOTE (dwmiller @ Feb 7 2009, 02:30 PM) A quote from Robert Kiyosaki: "Don`t work for money; work to learn".

Find a mentor (possibly a REIN member) and offer to work for them for little or no money. You can then learn from that person`s experience.

Learning first hand how things are actually done in the real world can be the best education of all.

My $0.02.

Yup that sounds good. excellent feedback.

 

[kanabel]

QUOTE (Dan_Eisenhauer @ Feb 7 2009, 01:52 PM) Check out REIC, Alex. You can take most, if not all, of its courses at home and/or online. Most UBC courses can be done through correspondence. The UBC real estate courses are rated amongst the top available.

But, as Ed suggests, get the REIN system under your belt first. That will give you the foundation on which to grow your knowledge. You will also have a better understanding of the information in those courses.

Now, having said that, there is no reason for taking university level courses to do well in this business... other than to increase your own knowledge level. That is the reason that I took all the courses I have done over the years. I took PM courses when I developed a PM problem with my first purchase. Rather than deal with the issue professionally, I ran from it by selling the property. It was then that I knew I needed to learn more, and I eventually became a Certified Property Manager. With several courses in common, it was just a course or two more that lead to my becoming a Fellow of the Real Estate Institute.

My point is that I did not set out to get the education first. I let my work experience dictate what I needed in the way of knowledge. My construction experience came from working as a VP of a small development company, primarily as a PM. From that I figured I could build a few homes, which lead me into overseeing renovations projects.

Thank you Dan for your insights! I`ve been eyeing for some time courses at UBC, Sauder School of Business, appraiser courses in particular, as I think it would suit my needs and personality the best. However I am a bit puzzled that they have one year certificate and two year diploma, and in addition to get a designation at Canadian Appraisal Institute, you need to have at least bachelor degree according to their website. So, my question is, in case you know an answer, can you get a job as an appraiser with any of these degrees and/or designation as well? How does it function? By your experience, what should I expect in terms of earnings? ALIS website notes earnings between 70k - 100k/yr in Alberta in 2007. Is it realistic? I have also considered real estate agent or mortgage agent. What`s your comparison?
Lots of questions, but you are the only one who was involved in all of these occupations, and hopefully you could give me some insights. I really appreciate it! Thanks a lot!

Dejan