As the real estate industry continues to grow, so does the demand for skilled professionals who can analyze, manage, and invest in Real Estate Investment Trusts (REITs). You must know about the various job opportunities in this field, and this article will help you with that. You will also learn how many jobs are available in real estate investment trusts.
What is a Real Estate Investment Trust?
REIT is a corporation, trust or association that owns real estate or real estate equity and, in some cases, both. It can also be said that they operate income-producing real estate assets. They are a corporation or government body listed on a Stock Exchange.
There are a lot of non-profit organizations that are dependent on the rental income from the properties they own or manage. The best thing is that publicly traded REITs pay their shareholders a minimum of 90% of the taxable profits.
They own various commercial real estate that comprises malls, office buildings, hospitals, hotels, apartment buildings and whatnot. But, it is important for you to know that real estate that is purchased by a REIT is not for future resale; instead, it is for development.
Later, it is used as a part of an investment portfolio for generating revenue. In short, they aim to increase the profit of investors by managing their properties.
The individual investors get a share of the income generated through these properties. It implies that investors can make easy money without purchasing or managing the property. How many jobs are available in real estate investment trusts?
There are various benefits for investors, such as they can purchase and sell them quickly and that too at a lower price. They have much better liquidity and are also listed on various stock exchanges such as New York Stock Exchange and NASDAQ. Thus, a lot of people invest in real estate to increase their passive income, as many presume that it is a safe investment with the least risk involved.
How many Jobs are available in Real Estate Investment Trusts? Full List
There are an array of jobs in real estate investment trust sector; all you need to do is search for the sector in which you wish to work. Explore how you can use your skills to manage, analyze and invest in income-generating real estate properties. Let us begin our list.
1. Real Estate Managing Broker
This is an excellent job profile; currently, more than 1, 50,000 people are employed in the US as real estate brokers. It is important for you to know that the real estate broker and agent are two different profiles or designations. Brokers are certified real estate employees qualified to look after a real estate business with numerous agents.
They have excellent skills in negotiating the property deal, whether it is a rental property or a sale/purchase. This job profile is best for you if you have excellent negotiation skills.
If you wish to work independently, it is better to have a lot of certifications in your name and pass the standard qualification test. Even if you have a license as an individual broker, you will still need to get a higher-level license to hire agents or brokers to work under you.
Keep in mind that you should never hire unqualified agents as it can lead to significant risk. The salary of a broker usually has six figures which is pretty good, and they can earn more as their skills and expertise become better.
2. Acquisition
This position in the real estate investment sector is associated with finding new options for investment. They also need to make sure that the transactions are done promptly.
The major requirement for working for this job profile is that it demands a lot of analysis as they need to identify and evaluate the potential targets for a new acquisition. There are a lot of job opportunities in this sector, and the good part is that this job pays really well, which is around $80,000 yearly.
They need to have great problem-solving skills and be aware of grabbing investment opportunities to make more revenue. This is one of the best jobs in real estate investment trust sector.
3. Investor Relation Manager
They majorly work with the REIT shareholders to coordinate and handle the communication flow between the company, its investors and stakeholders.
This is a perfect job for anyone looking for a job in the finance and accounts section, and the best part is that this job pays really well, plus the growth prospects are also pretty good.
Other things included in the job role as investor relations are to organize and prepare for the annual meeting, which includes creating a proxy statement and annual company report.
All the preparation should be done keeping SEC regulations in mind. To apply for this position, one must have at least an undergraduate degree, and the foundation should be in accounts or finance.
This is a people-facing role in which the individual needs to create relations with the commercial real estate investment community; for this, they participate in networking events, host business lunches and visit potential investors.
The salary of investor relations ranges from $80,000 to $90,000 yearly, and it can increase as per your experience or qualification. Now you know how many jobs are available in real estate investment trusts.
4. Asset Manager
The asset manager is responsible for the financial performance of a portfolio. It is one of the highest paying occupations as you can expect a salary of around $70,000 to $1, 00,000. They need to keep a check on the company’s financial and operational success. Furthermore, they are responsible for finding investors, checking returns and marketing.
To become an asset manager, you will have to start with property management; once you gain some experience, you can rise through the ranks and become an asset manager.
You need to oversee many things as an asset manager. One of the primary ones is to manage the client assets as per their investment goals and accordingly develop, organize and maintain their portfolios.
They need to work with accounts, finance, development and acquisitions to accomplish these goals. Along with this, they must work in compliance with REIT regulations, SEC and Sarbanes-Oxley. Anyone with the required skill set and expertise can outperform in this role and earn a good salary. An asset manager can earn up to $2, 50,000 yearly based on their experience.
5. Property Manager
You will be amazed to know that currently, there are around 1, 15,000 property managers employed in the USA, and this number is increasing. The job of a property manager is to engage with clients and sell or rent property at the best prices.
Therefore, there are a few skills that a property manager should possess to excel in thisl field, such as problem-solving skills, customer service albilities, managerial skills, project management skills and financial and marketing expertise.
They take care of everything, from leasing to collections and property maintenance. The best part is that there are no minimum requirements to apply for this role. The salary for this job ranges from $55,000 to $65000 annually, and the highlighting part is that the career growth is pretty good.
6. Real Estate Investor
This is one of the best jobs in real estate investment trust sector, as not only do they make a good salary, but the chances of growth in this sector are pretty good. Their significant role is to help people achieve financial independence by doing real estate investments.
It is a demanding and time-consuming job, but the pay and perks are also good. Now you know how many jobs are available in real estate investment trusts.
The other thing included in their role is to purchase the property, add value to it, and after that, sell it at a higher price. Well, it isn’t that easy; it is important for a real estate investor to know the in and out of the property acquisition and the best time to sell it to earn a good amount of money.
This job role is time-consuming as you need to do thorough market research before investing and trading. Along with being mentally challenging, it is also physically demanding as you will have to do various activities such as checking, maintaining, flipping, buying and rehabbing the properties. Doing all this helps them get a better return on their investments.
To become a real investor, you need to have a degree in accounts, finance or business, as you need to create strategies to generate better investments for yourself and your clients. The salary of a real estate investor ranges from $1, 15,000 to $1, 25,000 annually.
7. REIT Analyst
You can also become a REIT analyst, as this is a great job with excellent growth prospects and a high salary. A REIT analyst’s significant role is to research REIT and accordingly prepare a report and make recommendations to investors or help the companies make informed investment decisions. To perform well in this role, you need to understand this industry well and have a thorough knowledge of it.
This role comprises characteristics of both the financial and real estate sector as you need to analyze the market trends to make better decisions on which real estate properties you need to buy or sell.
Financial knowledge is important because REIT analyst needs to use numerous financial instruments to gauge the value of potential acquisitions and existing assets.
The popularity and demand of the REIT analyst’s job are increasing tremendously, which means it is becoming more challenging to find such jobs, as it is the most sought-after job in the industry.
To apply for this job, it is essential for you to have at least an undergraduate degree in business or a related field plus, it will be helpful if you have a knowledge of micro and macro trends in the regional real estate market.
8. Leasing Consultant
They are the rental property specialists and the face of the real estate sector. They are called rental property specialists because they work with tenants on behalf of the landlords. Also, they help their clients select properties or houses per their requirements and budget.
It can be an excellent job for you if you love looking at new properties, as you will have to check out a lot of properties for tenants and know about their lease terms. This is one of the best jobs in real estate investment trust sector.
To apply for this, you must have good interpersonal skills and advertising and marketing abilities to succeed. The additional role of a leasing consultant is to take care of the leases, arrange the meeting for property viewing and negotiation, market rental listings, make lease arrangements and paperwork and manage regulatory services. To crack the deals, it is essential for you to have an in-depth knowledge of the local real estate industry.
So, if you like the job role, you can apply for it, but there are a few prerequisites, such as a real estate license, a sound understanding of rental regulations, compliance and agreements.
9. Real Estate Attorney
This job role is pretty different from the ones mentioned on the list as their role is to see the legal aspects of property transactions or other legal issues such as property ownership.
It is the real estate attorney who prepares all the legal documents that are associated with the sales and transactions of the property. Lawyers have an important role in the REIT sector as they must intervene as mediators for both parties involved.
The attorney is also responsible for issuing the deed, paperwork, transfer of ownership, etc. It is essential for the attorney to act in the best interests of the beneficiaries, ensuring all the legal aspects and elements are met. The average salary of a real estate attorney ranges from $1, 50,000 to $1, 60,000 depending on the qualification and expertise. Now you know how many jobs are available in real estate investment trusts.
10. Real Estate Appraiser
The major responsibility of a real estate appraiser is to determine the right value of the property to help facilitate real estate transactions. The property’s value is based on numerous factors such as economic, political, location, supply and demand etc. thus, you will have to check the various factors to make the right decision.
Also, as the real estate market is volatile, thus, they have to stay updated about the industry trends to ensure that they do the appraisals right. If you wish to be successful in this role, it is important for you to have an eye for detail and in-depth market knowledge.
You will have to check the property by considering all the unique elements and researching the current market trends to evaluate the right value.
The jobs for a real estate appraiser are usually available in the appraisal firms, plus they also have the option to work with contractors. This is one of the best jobs in real estate investment trust sector.
You can be a specialist in commercial or residential properties if you can stay updated and have immense knowledge about the industry; you can also choose to appraise both types of properties. The average salary of a real estate appraiser ranges from $60,000 to $65,000 annually.
Types of REITs
If you know the types of REITs, it will help you find a job easily. Let us have a look at some of these funds so that you can choose a job in real estate investment trusts without much fuss.
1. Mortgage REITs
In these kinds of REITs, you need to invest in mortgage-related commodities instead of physical properties. Thus, it offers financing for real estate by buying mortgages or mortgage-backed securities; it can be either residential or commercial. In Mortgage REIT, the income is generated from the interest in their investments.
You will be amazed to know that almost 10% of real estate investments are in mortgage investments because it has a significantly greater financial purpose. Most of the organizations that invest in these REITs are government-sponsored. One thing you should keep in mind is the risk involved in investing in Mortgage REITs.
As if there is any rise in the interest rates, you will see a reduced mortgage book value, which means that you will see reduced equity prices in the books. Thus, there is just one way to make money through these REITs; it is by choosing the right investment platform.
2. Equity REIT
These REITs own and operate income-producing commercial real estate and have physical assets as their main revenue stream, such as apartment buildings, offices, etc.
In equity REIT, income is generated mostly by rental income. Equity REIT manages the property as it is a full-stack owner and operator, as well. But, they hire a third party to manage the assets.
3. Office REIT
They majorly manage, invest and own office real estate, which includes office buildings, IT parks, skyscrapers, etc. These properties are, at times, leased to people or groups. They basically generate income through rent from offices that are on lease for the long or short-term in these buildings.
To make a good profit from here, you should remember that investing in a developing city is relatively better than investing in a prime space in a city with no or very little growth in the future.
4. Industrial REITs
They are also known as Logistics REITs, and they majorly serve the industrial sector. Industrial REIT manages and owns industrial spaces like warehouses, cold storage, distribution facilities, etc. The reason a lot of people invest and prefer these is the high rental return offered. Without a doubt, these properties are vital for business operations and e-commerce.
5. Healthcare REIT
These REITs own and operate real estate related to the healthcare sector, comprising hospitals, nursing facilities, senior living facilities, assisted living, etc. This is another great sector to invest in, considering that healthcare costs are increasing worldwide.
The profit in this sector is directly related to the advancement in the healthcare sector. The income in this sector majorly comes from registration fees, medical compensation, occupancy fee, etc.
As the financing in the healthcare sector grows, there is no disadvantage to investing in healthcare REIT.
6. Residential REITs
These are the best REITs for you if you want to invest in residential real estate like family homes, student housing, residential buildings, condos, etc. These REITs own and manage various kinds of residential real estate and rent them out to the residents. Their major focus is on acquiring homes; they lease them to tenants and then make money from them.
They majorly target larger residential buildings as they can accommodate a lot of tenants, which means more income. There are a lot of things that you should consider before investing in this sector.
For example, do proper research as the top apartments in the market are relatively less expensive than in other parts of the country, so look for them if you want to gain higher profits. This should answer how many jobs are available in real estate investment trusts.
Also, it is recommended to invest in large cities as the cost of homes is rising there, because of which people need to take a house for rent, which enables the landlords to charge higher prices because of the increasing demand.
You should consider job openings and the city’s population before investing, as people usually move to different towns in search of job opportunities. Thus, as the demand for the properties increases, rent increases, thus leading to a great performance of residential REIT.
7. Hybrid REIT
This REIT invests in properties and mortgages REIT. Thus, in layman’s language, they own properties and hold mortgages as well; thus, you have different ways to make money. This is an excellent strategy as it aims to reduce risk and offers flexibility for REIT managers. Many investors opt for this kind of REIT when they are unsure of the type of REIT they wish to invest in.
8. Hospitality REIT
This real estate investment trust owns, acquires and manages motels, hotels, resorts, and business-class hotels and leases them out to guests. A third-party hotel brand usually manages these properties. These properties are given on rent for a night or on a weekly basis. The revenue is generated from the fee that comes from the rent of these places. One of the drawbacks can be that this is a seasonal business; thus, while investing, check for various sectors such as the footfall in the area, tourism, etc.
9. Diversified REITs
These are among the best REITs as they own and operate various properties, making investing in real estate easier. Here, you get the opportunity to invest in various property types such as office, industrial, hospitality, residential, real estate, etc. These REITs are recommended for investors wishing to invest in different real estate assets.
So, how many jobs are available in real estate investment trusts? There are an array of jobs in real estate investment trust sector; all you need to do is search for the sector in which you wish to work.
Now, let us makes things even easier for you by looking into some of the best available jobs in these sectors and the salary you can make from them.
FAQs
Here are some common questions that people ask regarding REITs.
Q1. Currently, how many jobs are available in real estate investment trusts?
A1. If we talk about the US, there are more than 3, 25,000 jobs in this sector, and you will be amazed to know that around 3.4 million additional jobs which are indirectly related to the REIT sector.
Q2. Which are the top 5 real estate investment trusts by market capitalization?
A2. As per the market capitalization, the top 5 industries are-
- American Tower- $123.42 B
- Prologis- $96.39 B
- Crown Caste- 76.57 B
- Equinix- $60.60 B
- Public Storage-$59.76 B
Q3. What are the mandates or requirements to become a real estate investor?
A3. It is essential for you to have an in-depth knowledge of the market. Furthermore, for better job opportunities, growth and salary, good qualifications are recommended. Plus, other skills include analytical skills, management skills and the ability to create a solid network.
Q4. Is investing in the REIT sector a good option?
A4. Investing in the REIT sector is a good option for investors as it offers a high return. REIT companies invest in different types of real estate properties. Thus, the major benefit to investors is that they get a long-term return and get a better income.
These were some of the best jobs available in the REIT industry. If you wish to become a part of it, then it is important for you to have a passion for the industry and should pay close attention to the market predictions and stay updated with all the recent developments. If you have in-depth knowledge about the industry, it becomes easy for you to grow in the industry and earn a good income.