Is Real Estate Education Still Needed?

As an 18-year veteran and third-generation real estate investor, I feel like I have seen it all. I have seen the market cycles, both the ups and the downs. I have seen people make hundreds of millions, and I have seen some of the most gruesome losses.

For me, real estate is a lifestyle. It is a philosophy and a way of living. After watching my father build his portfolio, I never wondered whether I would buy real estate as an investment strategy. That would be like asking Michael Jordan’s son whether he has ever held a basketball.

After what seems like a lifetime of investing and as the owner and founder of Think Realty, the question I often find myself asking is this: “Is real estate education still needed?”

In recent years, I have met a single mother who flipped an entire distressed house with her children by watching YouTube videos. I have met young people in their early 20s who have sizable portfolios of cash-flowing assets. When you ask the rudimentary question “How did they do it?” the answer is always that someone told them or showed them.

The medium through which they have been shown may have changed. Instagram or TikTok may have replaced an in-person mentor, but they all were left breadcrumbs of knowledge to follow.

So, to answer my question about whether real estate education is still needed, I give a resounding answer: Yes.

Yes, real estate investment education is still needed. It is needed not only by new and prospective investors but also by people who are currently investing. Education is always best delivered by the person who has experience that is both practical and current. I remember sitting in a college marketing class scratching my head over a 70-year-old professor teaching us marketing from a context of how he did it in his day. He may have had knowledge, but it was neither practical nor current.

Real estate education has been a breeding ground for the lowest of society and those who would take advantage of curious and novice investors. As such, it has a bad reputation. Most people today would never dream of being called a “real estate educator” or “guru.” People run from those titles. Because of that, we lack qualified and current educators. We have education in the industry that is sometimes more than 40 years old. We desperately need a new generation of educators who have weathered the storms of the financial crisis and understand what virtual wholesaling is, or what an i-buyer does.

With that as my premise, here are a few areas where we need education.

Wholesaling

We need a re-education of wholesaling. Given the landscape of how to find houses and changing state laws, much of the wholesaling education out there is highly dated. I have even heard some that borders on illegal.

Wholesaling is typically an early entry into real estate investing. It is the way someone with very little capital can begin to find distressed deals and aggregate some money. With more education available, more people will take advantage of it. Also, some of the largest REI companies in America are doing this, which can be a recipe for disaster. You will find a massive behemoth of a company that is now competing with a brand-new investor jumping into the market.

Education is critical. New investors must learn not only the tactics of taking on a distressed deal from acquisition to disposition but also how to find the deals with new digital techniques and how to find the right markets to do it in.

Alternative Investments

The second area where we need education is in all the alternative investments. Given the demand issues of single-family residences, it may be too difficult for a new investor to start there.

So, we need education on all the alternative classes (i.e., mobile homes, self-storage, residential assisted living, short-term vacation rentals, land development, modular housing, small commercial, and nearly a dozen others). These areas of investment are rarely taught, but based on the region where the investor is located, these alternative classes could be extremely lucrative. Many of them have a much lower barrier to entry.

Financial Literacy

Another area that needs teaching is financial literacy and investment philosophy. Most of the early real estate education was first taught with new financial literacy parameters. Some of the early teachers would start by creating a mindset of financial freedom. They would speak of how your passive or active cash-flowing asset should pay for your monthly expenses to grant you independence from a job or other responsibilities.

This is rarely taught now. We see teaching revolving around more sophisticated strategies, but the basics of financial literacy are missing.

Passive Investing

The last area I will speak about is passive investing into syndicated deals or funds. Due to celebrities in our space who push these opportunities, new investors will jump straight into them and may not be ready. They have never been taught how to vet the deals or viability of the investment. They may be accredited by status but still do not know the major factors for due diligence.

I have seen hundreds of investors struggle after making investments in these types of strategies too early. They limit their growth because they never take a more basic step first. Because much of this type of investing is pushed by influencers, I do not believe people will change course, so they must be educated to make better decisions. This is critical!

In addition to the ones highlighted here, there are many other areas where practical and current education is needed. I hope some of you seasoned investors will take the challenge and reach back to others to help them along the way. I hope that someone reading this will be challenged to begin the process of leaving breadcrumbs for others, just as someone has most definitely left them for you.

If you are a new real estate investor, I hope you also read this list and rededicate yourself to finding someone who teaches and practices the education they push. Be aware of their track record and activity. Make sure they teach fundamentally sound principles of wealth generation and financial literacy first and foremost.

As a third-generation real estate investor, I hope to see my children doing the same someday. I also hope that what they do not learn as I pass down my own experiences can be filled by generous and authentic teachers who are willing to help everyone share in the true American Dream.