An Education In Real Estate Investing Can Be Your Best Investment

There are many people that are venturing out and searching for additional ways to make additional income. That is to be expected when it comes to real estate. Real estate has been a popular investment for many years. Many millionaires made their first million dollars in real estate. So it should come as no surprise that Real Estate Investing is being glamorized by celebrities like Donald Trump and various television shows that depict real estate investing as a big money maker.

Real Estate Investing can be all that celebrities and television program make it out to be, but it is not as easy as it looks. Real Estate Investing requires knowledge of different techniques that can be used when trying to buy, sell, negotiate or repair a house. Without this type of specialized knowledge real estate investing can be a monumental disaster.

Having laser specific knowledge can mean the difference between success or failure. Knowledge is what separates those that invest in real estate and those that talk about investing in real estate. The knowledge that is required is not difficult to master. In fact, just about anyone can be a successful real estate investor. I have seen people from all walks of life and educational backgrounds go on to be successful real estate investors. One man that I know and admire very well became a successful real investor despite the fact that he first had to learn how to read. It is possible for anyone to learn how to invest in real estate.

Who should learn more about real estate investing? Anyone that is considering buying property as an investment should become educated before doing so. Rentals, foreclosures, rehabs, lease options and various other techniques are tried everyday by real estate investors. In most cases however, only the investors who have taken the time to educate themselves will be successful.

Also, anyone that is considering buying or selling houses on their own (without a realtor) is at considerable risk of financial loss if they don’t get an education before venturing out into unchartered waters.

There are many different types of educational opportunities. One can always purchase books from the local bookstore to get some advice. There is also a large number of websites that cater to real estate investing. Some of these sites will sell home study courses that, in some cases, give a thorough, explanation, training and education on various real estate investing topics. One may also find coaching and mentoring online to help those that don’t believe they are quite comfortable enough yet to do real estate deals on their own. Some colleges and Universities have also started to teach real estate investing.

It is never too early to start the educational process. Real Estate Investing can be a very lucrative business. It can also bankrupt those that are not ready to invest or that do not understand how to minimize the risks that come with the real estate investing territory. In the end every one that invests in real estate is doing so at their own risk. A proper education in real estate investing is a great way to minimize that risk and start one on a path of financial freedom.

Real Estate Institutes in India

Indian real estate sector witnessed dynamic growth since the beginning of the millennium. Developers started launching projects after projects, which used to be supported by innovative financial tools offered by private equity & venture capital funds in addition to traditional financial institutions. Government equally supported the growth with its growth oriented policies. Housing Finance Institutions contributed its share in the development by offering loans liberally to prospective home buyers. On the other hand, developers started formulating innovative marketing, sales and customer service strategies. They suddenly moved from direct and local level marketing to national and international level marketing. World Wide Web became one of the most common medium of promotion.

These developments resulted in massive requirements of trained, competent and specialist human resources for the property sector. Unfortunately, since the time realty business started growing, neither the players of this sector nor the Government ever thought of any long term strategy to develop manpower for this important economic sector, except occasional airing of concern. The result is the acute manpower crisis in the Indian property sector.

However, it is worth to mention here that there have been few initiatives to offer real estate education in India, most noticeable NICMAR and NIREM.

NICMAR, National Institute of Construction Management & Research, offers full-time programs in various areas of realty and construction management through its different campuses. The courses are of two-year, one-year and six-month duration. The institute also offers courses through distance learning mode. But there is no realty related courses offered through distance mode. Moreover, almost all of the courses of NICMAR are focussed towards construction and development.

IDS NIREM, National Institute of Real Estate Management, on the other hand, offers one year PG Diploma and six months Diploma programs in various areas of property business through distance education mode. These areas include real estate management, property marketing, sales & brokerage, realty finance, property investment, appraisal, facilities management etc. A key feature of NIREM is its affordable tuition fee which is less compared to most of the other professional institutes.

To conclude, I must say that the above initiatives towards real estate education are definitely praiseworthy but are insufficient compared to the human resource needs of the Indian real estate sector. Unless there is an integrated planning towards introduction of the system of real estate education in India, this sector will continue to face manpower crisis.

Real Estate Education Enhances Transparency, Professionalism and Business Volume

Property broking profession lacks credibility and is always looked at with suspicion. However, the credibility of this profession can be enhanced through real estate education. A thoroughly planned system of property education can not only improve the credibility of property professionals by inculcating numerous changes in the profession but also enhance the business volume of educated and certified professionals. Suitably planned courses can teach property professionals the better, profitable and convenient way of doing real estate business. Few of the key changes that education system can bring into property market are as follows:

Transparency in transaction and business professionalism: Knowledge enhances transparency and professionalism and this is true for real estate market also. Today, several property brokers are active in the market without any structured knowledge of property sales and transaction process and therefore they are forced to provide wrong and partial information to their clients. They are not able to close the deal properly, mostly at the cost of prospective home buyers, because they have not studied how property ownership is verified, acquired, transferred and leased. In the Indian property market, there is a sub set of property advisors, who want to upgrade their knowledge and skill but are unable to do so in the absence of a system of real estate education in which they can study as well as run their business.

In this scenario, a proper system of property education and training, consisting of a network of real estate institutes offering full time, part time, evening, week end, distance and online real estate courses, could have improved the subject knowledge of professionals and in turn would have improved transparency in property transactions and professionalism in the business, especially property consulting business. A point to be mentioned here is the initiative of EduMark realty education services which offers courses for those looking for real estate jobs as well as for existing property professionals looking for professional development. EduMark is the first and only institute in India that offers full time, part time, week end, evening, distance and online courses.

Customer Service Efficiency: A knowledgeable and informed property advisor can serve his clients effectively and efficiently which in turn increases his demands in the market. Such demands increase his overall volume of business because one satisfied customer can create ten new customers. However, structured knowledge and information come only through a properly established process of education.

Subject knowledge and business volume: It is an established fact that buyers tend to prefer a knowledgeable advisor (knowledge displayed through his educational qualification) more than that of an advisor who is not well informed and knowledgeable. However, in the absence of property education system, courses and institutes, property brokers can’t display their knowledge because they can’t acquire any suitable real estate qualification and therefore potential home buyers can’t identify the best suited advisor.

Business ethics and business volume: By offering fraudulent advice, one can derive benefits in short term but it is a net loss in long term. This is very true for property brokers also. This is because, as mentioned above, one satisfied customer can create ten new customers but one dis-satisfied customer can dissuade hundreds of potential clients, so the losses are many folds. However, this fact can be explained to these property consultants only if they are inclined towards learning and there is sufficient opportunity for such learning.

Real estate jobs and cost of recruitment and training: One of the most important impacts of education in this business is on property jobs; While real estate courses offer a platform to potential candidates to start their career in real estate by taking up suitable property related jobs, it reduces the cost that employers make on the training of new employees. Those candidates who have done a property related course are already trained and ready for real estate jobs and therefore employers do not need to arrange fresh training of the such employees, which saves time and money both.

Overall, a proper devised system of education for Indian property market can enhance not only the transparency in transaction and business professionalism but also the business volume of the market players. Another advantage is the reduction in training and employee orientation cost.