Is Real Estate Investment Trusts a Good Career Path?

Is Real Estate Investment Trusts a Good Career Path?

As someone trying to enter the real estate industry, real estate investment trusts (REITs) are an appealing option. But is it really a viable career path for you too? 

With this guide, we’ll introduce you to everything you need to know about REITs to help you decide your career path. Let’s get into it!

What Is a Real-Estate Investment Trust (REIT)?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. Modeled after mutual funds, REITs provide investors with an efficient way to invest in large-scale, diversified portfolios of real estate assets. 

They are required by law to distribute at least 90% of their taxable income to shareholders, making them a popular investment for those seeking regular income.

What do REITs Do?

REITs work by pooling capital from multiple investors to purchase, manage, and sell real estate assets. 

They generate income through leasing space and collecting rents on the properties they own. Basically, through the acquisition, management, and sale of real estate assets. Their primary sources of income include rental income, property sales, and interest income.

The income generated is then distributed to shareholders in the form of dividends. REITs can be publicly traded on major stock exchanges, privately held, or publicly non-traded.

The Different Types of REITs

There are 3 main different types of REITs:

  1. Equity REITs: These REITs own and operate rental properties. In simple words, they lease spaces and collect rents.
  2. Mortgage REITs (mREITs): These REITs provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities.
  3. Hybrid REITs: These REITs combine the investment strategies of both equity REITs and mortgage REITs, investing in both properties and mortgages.

Is REIT a Good Career Path For Me?

Now that you know what RIETs are, their types, and how they make money – let’s get to your main question: should you choose REIT as a career path?

REITs can offer dynamic and flexible options for changing roles and the potential for growth. You can grow and learn a lot in this field. Here are some things you should know and consider:

Skills You Need to Work in REIT

Second, working for a RIET company includes tasks such as market analysis, financial statements & modeling, property valuation, and strategic planning. So you need relevant education and skills to deal with these tasks. These skills include:

  • Financial Analysis
  • Real Estate Knowledge
  • Communication
  • Project Management
  • Problem-Solving

Pros of Working For a REIT Company

Here are the main benefits that attract people to work for REITs:

  • Growth Opportunities: The REIT industry offers significant career advancement and professional growth potential.
  • Diverse Roles: A wide range of job functions are available, catering to various skills and interests.
  • Stable Income: REITs often provide stable and attractive compensation packages, including performance bonuses and dividends.

Cons of Working For a REIT Company

However, there can also be some cons to working in this industry. For instance:

  • Market Volatility: The real estate market can be cyclical and subject to economic fluctuations, affecting job stability.
  • High Pressure: The industry can be demanding, with tight deadlines and high-performance expectations.
  • Regulatory Environment: Compliance with various regulations can add complexity and stress to the job.

Jobs You Can Get in REIT 

There are several roles you can fill if you decide to work with REIT companies:

#1 Property Manager

Role: Property managers are responsible for the day-to-day operations of real estate properties. This includes managing tenant relations, overseeing maintenance and repairs, and ensuring the property is running efficiently.

Skills needed: Strong organizational skills, excellent communication, and the ability to handle multiple tasks simultaneously.

How much you can earn in this role (US): $35k-$90k

#2 Asset Manager

Role: Asset managers focus on maximizing the value and return on investment for the properties within a REIT’s portfolio. They develop and implement strategies to enhance property performance and manage financial metrics.

Skills needed: Financial acumen, strategic thinking, and experience in property management.

How much you can earn in this role (US): $50k-$120k

#3 Acquisition Analyst

Role: Acquisition analysts identify and evaluate potential real estate investments. They perform market research, financial analysis, and due diligence to support the acquisition process.

Skills needed: Analytical skills, attention to detail, and proficiency in financial modeling and analysis.

How much you can earn in this role (US): $45k-$115k

#4 Marketing Coordinator

Role: Marketing coordinators develop and implement marketing strategies to attract tenants and promote properties. They keep an eye on market trends, manage advertising campaigns, create promotional materials, and maintain the company’s online presence.

Skills needed: Creativity, marketing expertise, and strong communication skills.

How much you can earn in this role (US): $35k-$95k

#5 Construction and Development Manager

Role: These professionals oversee the construction and development of new real estate projects. They manage project timelines, budgets, and coordination with contractors and architects.

Skills needed: Project management skills, knowledge of construction processes, and the ability to manage large teams and budgets.

How much you can earn in this role (US): $50k-$150k

Summing Up: Should You Take Up REIT Career?

A career in REITs can be highly rewarding if you have a knack for real estate, finance, and management. 

This field can offer you multiple jobs and roles, provide you with a good income stream, and allow you to learn and grow. Entry-level analysts and managers will benefit greatly from having finance and accounting knowledge. 

Now that you know all the basics about REIT, it’s time for one final step: to evaluate your own interests and skills before making a decision!

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