Is Real Estate Investment Trusts a Good Career Path? Find Out!
By Ankita Tripathy
16 September, 2022
Real Estate
Last Updated on: December 19th, 2024
Is real estate investment trusts a good career path is a common question that gets asked – and this is something you cannot change mid-way. And no, you don’t always have to risk your money if you are working in the real estate sector.
There are other ways to earn money from the real estate industry without putting your money at risk. One of these ways is to get a job in real estate investment trusts.
If you love managing, maintaining, renting, and selling properties, then you can consider the real estate investment trusts a good place to start your career. There are thousands of job opportunities lined up in real estate investment trusts.
You can start as an asset manager, property manager, investment analyst, or acquisition manager.
Is real estate investment trusts a good career path? Yes, it is. These roles in real estate investment funds are great for choosing your career. This article will help you understand the potential of jobs in real estate investment trusts.
What is Real Estate Investment Trust?
Before we tell you if real estate investment trusts are a good career, let us tell you all about it. It is also known as REITs – investment organizations generating revenue using real estate properties.
They don’t earn by investing in stocks or bonds. Instead, these trusts (REITs) own, operate, sell, or buy real estate properties and make money out of them.
REITs have many apartment communities and commercial buildings to rent or sell.
These trusts work with different investors who can make money through different means. Here is how they make money –
- They don’t have to own or manage a property; these investors can earn money simply by investing in investment firms.
- Investing in REITs is simple, like investing in mutual funds. They are publicly traded platforms. Hence, anyone can invest and make money from these trusts.
- Investors looking for a liquid investment can leverage the liquidity that REITs offer.
- Instead of putting your money on hold on any specific property, investors can invest here and liquidate their investment funds.
Since the REIT industry is large and the number of sizable investors is not minimal, it opens a wide range of job opportunities.
Types of Reits in the Industry You Can Have a Career in!
Here are some of the common REITs that you can invest in. Speak to your financial advisor and get clear on the REIT type that will be best for you. Check out the different types of REITs:
Healthcare REITS
This trust allows your clients to invest in the real estate of medical centres, hospitals, and nursing facilities. You may even suggest they invest in nursing homes.
Retail REITs
These allow your clients to invest in retail properties where you generate revenue from rental income. This may come from retailers or tenants. Economic conditions, consumer trends, and competition from e-commerce affect this REIT. So, make sure you are thorough about the type of REIT your client wants to invest in.
Equity REITs
If you are wondering if real estate investment trusts are a good career path, then you can consider this REIT type to have a future. If you choose to be in the equity REIT, you can easily advise your clients to invest in hard real estate assets such as retail, industrial, residential, and hotel properties.
Mortgage REITs
If you plan to be on this career path with a high profit percentage, this is the type you should think of. This is a fruitful career as it allows the client to buy stakes in commercial and residential mortgages or loan the amount for mortgages.
Mortgage REITs generate income from the interest on the debt they hold.
How Do REITs Work?
REITs work by investing in income-producing properties such as apartment complexes, shopping malls, and even skyscrapers. The rental income and the interest payments all come from these properties. This is how they distribute to investors as dividends.
The investors benefit by receiving units in the REIT instead of owning the property physically. These units are then listed on the stock market and bring the investor profit depending on the performance of the underlying real estate.
Is Real Estate Investment Trusts a Good Career Path?
Most of this sector’s jobs are managing, developing, and selling real estate properties. The increasing size of the REIT demands fresh talents to work in this sector.
A large amount of job opportunity is opened in this industry every day. Here are some job roles in this industry.
1. Property Manager
One of the entry-level jobs in the REITs is the property manager job. As a property manager, you may have to maintain one property or a portfolio of multiple properties.
Collecting rent payments, leasing, dealing with evictions, and enforcing lease provisions are some of the responsibilities of property managers.
There are more extensive roles for property managers beyond the ones mentioned above. The median pay of the property managers is $60000 per year.
If you are looking for a career in real estate investment, then the role of a property manager is a good choice.
2. Asset Manager
Unlike property managers, asset managers don’t have to deal with the day-to-day operation of real estate properties. As an asset manager, you have to deal with the financial and operational deliverables of the REIT portfolios.
Part of their job is to get the maximum amount from the market. As an asset manager, you must collaborate with the REIT’s development, acquisition, accounting, and financing departments.
Their median salary is around $840000 per year. This is an illustrious career path in real estate investment trusts.
3. Acquisition Team Member
Is real estate investment trusts a good career path? You will not have any doubt about a career in the REIT once you understand the value and opportunities of being an acquisition team member. With expertise in marketing, finance, capital market, and business, you can create your career as an acquisition manager. The median salary of these professionals is $120,000 per year.
4. Investor Relationship Management
Working under this job title in the REIT sector will require you to work with the REIT stakeholders. They have to control all the communications. These professionals have to plan and assemble data for the annual meetings.
Such meetings include proxy statements and making annual reports. In addition, working closely in the REIT sector will help you learn about the REIT passive income sources.
I think that this article was helpful and informative. Moreover, if you have any further queries related to the same, you can ask questions in the comment.
Frequently Asked Questions (FAQs)!
I think you have found your answer related to the jobs in real estate investment trusts. However, here are some popularly asked questions and answers you might find informative.
⁍ There are many jobs in real estate investment trusts. There are varieties of job roles in real estate investment trusts. Aside from investing in these trusts getting jobs in this sector will enable you to work collaboratively with the retail, healthcare, and several other industries. Most of the jobs in this sector are well-paid.
⁍ Compared to residential and commercial properties, REITs return at a better rate annually. The residential properties return 10.6 per cent, while the commercial properties return 9.5 per cent on average. But the REITs return at in 11.08 per cent rate.
⁍ The REITs are profitable to work in. They offer all the investors an opportunity to work in. They also offer dividend-based income to the investor and a sizable total amount of return. There are diverse options for growth in a career in these publicly-operated companies.
Final Words
Is real estate investment trusts a good career path? I think this article will stop you from wondering about REIT jobs being worth it. The different job roles in the REIT sector I have talked about offer a great salary and healthy job opportunities. People interested in the real estate industry can choose to work in the REIT sector.
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