More new graduates consider real estate careers
By Gargi Chakrabarty
Indianapolis Star
After spending four years in architecture, Charles Johnson decided to switch careers.
Now in his final year of a program for a degree of master of business administration at Indiana University's Kelley School of Business, he says he wants to become a Realtor.
"Real estate is a hot area," said Johnson, 29, who is majoring in finance and real estate. "Recruiting for MBA students has been very bad this year. Hopefully, it'll be easier to get a job in real estate. And I've always been interested in buildings and developments."
Johnson is among a growing number of students opting for careers in real estate.
With the stock market on shaky ground, real estate has emerged as a haven for many investors. That opens up opportunities for people seeking careers in the industry, said Jeff Fisher, director of IU's Center for Real Estate Studies.
"I'd say about five to 10 MBAs in my class are looking at real estate as a career, while the remaining are interested in it as an investment," said Fisher, whose class enrollment doubled to 55 students last semester and stayed at that level this semester.
Enrollment in private real estate schools, which cater mostly to people switching from other careers, is also rising.
"Whenever unemployment rates go up, our enrollment goes up," said Tom Rogers of the Real Estate Career Institute, one of the many independently operated schools in Indiana.
The center has two sites in Indianapolis where it prepares about 250 students a year to take the state licensing exam. The enrollment number has almost doubled in two years. Students have to take a 54-hour course before they can take the licensing exam.
"Nearly 85 percent of our class pass the exams," he said. "Once they pass the exam, they can affiliate with a real estate company or a broker."
The swelling numbers worry some experts.
"There is always a danger when there is a huge rush into any industry — the most recent example being the rush into technology and the Internet as capital and new players came into that market, and then the subsequent meltdown," said IU's Fisher.
Fisher is optimistic that this boom will lure more talent to the industry. Most of his undergraduate students, he says, are interested in real estate as a career.
"To be a Realtor, one needs strong entrepreneurship skills," IU senior Tom Hollinden said. "You have to do the work by yourself, so you need strong personal skills. It's definitely one of the most risky careers. Schools teach how to manage risks, but there's no way to manage how successfully you sell a building. You're your own boss, and there aren't any superiors to tell you what to do."
The school emphasizes internships, said Hollinden, who also is president of the RE Club, a group that connects students with real estate companies in various cities.
"Internships are very important," agreed Johnson, who worked with New York-based Albanese Development last summer. "It gave me exposure to the industry and helped me make contacts in that area, where I plan on moving after graduation."
At Indianapolis' Duke Realty, summer development plans are put together for the interns — recruited mostly from Indiana and Purdue universities — depending on level of experience.
For instance, an intern in property management is trained to do budgeting, visit tenants and talk about renewals, noted Denise Dank, Duke's vice president of human resources. The training is spread over several summers, depending on a student's abilities.
"This year, we have made job offers to three of our five interns," Dank said. "We could make offers to the remaining two once they're closer to their graduation."
But Hollinden warns that the real estate boom might go bust in a few years; hence, students should consider their long-term goals before they enter the industry.
"In real estate, you don't make money as soon as you get out of college," Hollinden said. "Most jobs are commission-based and not salaried. It could be several years before you start making good money."
