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23 Aug 2011

Is Education in Real Estate Investment Necessary?

Is education in real estate investment necessary to make it as an investor?
In my books, educations is never over-rated. There is following your instincts, which plays a huge role in any investment decision making. But nothing takes the place of knowledge. Ignorance can only cost you a great deal. Knowledge of real estate policies, regulations, laws, etc is absolutely essential.

By education, I don't mean a formal "lecture, four walls, desk" situation. I am referring to self education, research, reading, following trends, etc. I did choose the formal education, which I don't regret. That just complemented my on-going informal education. I read stuff that successful people write, even though their strategies are usually not my match. Its always good to know what others think. Its also inspiring to read the stories with humble beginnings.

Did I mention that, most of what I read is no way suitable for me. And definitely not matching your style. Whatever you get to read, add a grain of salt. No one can accurately predict the market, 100% of the time. There are also too many variables that determine success, of which "LUCK" is one and timing another biggy. It doesnt really matter how great and successful an investor or financial adviser is, he may just take you way off track if followed blindly.


When Suze Orman said, "pay your house up as fast as you can", I never listened. Whilst I liked her material at the time, I am very glad I ignored that one piece of advise. Yet that's a great advice for a homeowner. But not when your home ownership is based on an investment plan.

When a friend and fellow real estate investor said "you will never go wrong with real estate" I was shocked to say the least. We have witnessed people going so wrong, especially recently. Its VERY easy to go wrong with any investment. That may actually be worse with real estate as you cant change your mind and get out of the investment as quick as you can. If you want an easy "in" and "out", try the stock exchange.

How about investing in the current economic climate? Its very difficult to predict what the future holds. Most are playing watch and pray. Others are taking risks. Most are just overwhelmed as the economic issues proved to have the mind of their own.
Our quotable man of the moment Warren Buffett says 
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
In all, Education in Real Estate Investment will remain an important factor to determine your success. If not, try LUCK.

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