Over the last six decades, real estate investment trusts, or REITs, have undergone significant growth. For instance, their market capitalization increased from $389 billion in 2000 to $1.1+ trillion in 2017 in the U.S alone. Also, most REIT categories went up substantially in 2021! They rebounded quite well from the pandemic. This seems like a promising industry. So you see this, and you might wonder… how many jobs are available in real estate investment trusts?
We’ll answer this question in just a bit. But first, let’s first answer the following question:
What are REITs?
Real estate investment trusts ( REITs ) are companies that own, operate, and/or financially support properties that produce income. These properties include hotels & shopping centers to apartment buildings and warehouses.
REITs came into existence when President Dwight D. Eisenhower signed Public Law 86-779 (also known as the Cigar Excise Tax Extension of 1960). They were first made to provide the average American with opportunities to invest & benefit from income-generating properties. Luckily, they’ve been a successful project and now they can support both: investors & job seekers alike!
REITs operate based on a simple & straightforward business model. They lease space and collect the rent on the properties. Then, they give at least 90% of the ROI back to their shareholders in the form of dividends. That’s what the law tells them to!
From an investment standpoint, they essentially work like mutual funds. That’s because they make real estate assets available to anyone who wishes to invest in them.
How do REITs function?
So, we know what REITs are, but how do they work?
Well, let’s take an example. Say, Crown Castle International, a REIT operating and headquartered in the United States. Basically, it works like this:
After Crown Castle qualifies as a REIT, investors can buy the company’s shares. And because REITs are based on mutual funds, they entitle investors to partial ownership of all of Crown Castle’s investments.
Then Crown Castle pools money from these different shareholders and invests it in a variety of real estate property investments. This investment might be through direct ownership of these properties, collection of real estate loans, or both.
Crown Castle will then make income from these properties either through rental payments or from collecting loan interest payments. The REIT will lastly use the ROI to pay the shareholders their dividends based on how much they invested.
Why are REITs a great investment?
Investing as a whole will always come with risk in one degree or another. However, investing in REITs tends to come with more pros than cons, mainly because of the following reasons:
Relatively low risk
It is impossible for an investment of any kind to be completely risk-free. However, the REITs model marks very low risk margins. Especially if compared to most other forms of investment.
Straightforward business model
REITs are a great investment choice for many reasons. But one of the most fundamental ones is their simplicity, straightforwardness, and ease of use for anyone.
Investing can be a difficult concept to wrap your head around. So, knowing exactly what you’re putting your money into gives you a clearer path to and vision towards the future.
Stable and substantial yields
Real estate investment trusts are reliable as they generate substantial revenue. The ROI tends to stay quite stable through a variety of wider economic and financial conditions.
Long-term competitive returns
REITs have a stellar track record of delivering high returns. They are competitive not only with those of higher stocks, but even more than those with more fixed-income investments.
REIT management teams focus on maximizing shareholder value. They put in the work to ensure that their properties attract and retain stable tenants. And they also buy and sell properties strategically so they can build value over the long term.
Ideal for small investors
REITs are good for small investors for a number of reasons. A significant one is its involvement of a pool of many investors…
That opens up the possibility of owning real estate asset for almost anyone! Including those who barely make enough to live an average life.
REITs are also a good investment for retirees. They can provide a constant supply of income for a lifetime. Which keeps elder and unable to work people secured and well-set.
Because REITs are usually monitored by independent auditors and analysts, there is more transparency in how they operate. Especially if compared other investment sectors where this may not be present.
In other words, you are protected as an investor.
As a business model, REITs tend to operate on multiple properties. This implies that -investors like you might be- are able to diversify their portfolios. Moreover, their investments are also well-protected than they would be by relying on one single property.
It’s quite easy to buy and sell real estate propertie. That’s why investing in REITs also enables you get the advantage of liquidity. In other words, as an investor, you can easily turn your assets into actual cash.
REITs aren’t great for big investors only!
REITs are so advantageous for investors, that’s a fact. But they aren’t the only ones who can benefit from what REITs have to offer. Working for a REIT can also provide great job & career opportunities.
About 274,000 people were employed in jobs in real estate investment trusts in 2019 alone. With another 2.6 million gaining employment indirectly through the REIT industry.
The real estate market size grew to $10.5 trillion in 2020– almost twice the size it was ten years prior. And that’s despite the COVID-19 pandemic bringing unprecedented challenges!
The residential real estate market is expected to grow by +9% in the next five years globally.
Growing industries mean an ever-increasing number of job opportunities. With this, it is quite obvious that building a career in real estate investment is definitely worth considering.
These are the jobs available in real estate investment trusts
REITs are responsible for every stage and aspect of any real estate project they oversee. So, there are many different types of high-paying jobs in REITs, with varying positions, levels and roles. Between the agents, project managers, and other professions REITS job offers play between 800 and 1,200 on Indeed. On LinkedIn, the average active REIT job offers stays around 3,000 job offer!
The 5 Rs of REITs
This aspect of the job is all about developing new projects and working out the finance for those new projects. This particular role is suitable for anyone looking for managerial opportunities in this sector.
Acquisition roles involve seeking new investment opportunities for the company. They oversee investment deals and work to ensure that they are successfully closed. These roles are heavily based on finance, so this is a good opportunity for job seekers with a finance background.
Property Management Roles
Property managers are in charge of the operations of a given property. Everything from leasing to maintenance occurs under the supervision of the property managers. These roles are a good opportunity for anyone with general managerial skills.
Asset Management Roles
The asset management roles are responsible for making sure the company’s investment portfolio is intact. Asset managers develop & maintain the assets of the company’s clients. This is done by making sure that the investments are in line with the clients’ investment goals and preferences.
Asset managers need to be collaborative, as their work intersect with colleagues from other departments. They are also required to operate in compliance with industry regulators.
Investor Relationship Roles
These roles are responsible for communications between the company and its shareholders. Apart from managing communications, they also manage annual meetings and meeting documents. These roles are good for anyone with a finance or accounting background.
Best paying jobs in REITs
The standing of any particular industry is contingent on several factors, such as the general economic well-being. However, the top-earning jobs in real estate investment trusts remain immune and stable across the board.
For those looking into working for a REIT, the best paying jobs in this industry center around property development, property & asset management. Follows are some slight examples:
Real Estate Broker
Real estate brokers negotiate the prices of properties, draft contracts for buyers and/or sellers. They also oversee a team of real estate agents, who connect the buyers and sellers. The broker may either work independently or under a firm, and either represent the buying or selling party.
Earnings: About $68,000 annually
Real Estate Agent
Real estate agents provide assistance to people looking to buy, sell, or rent a property. They act as a mediator between any two parties. And they don’t necessarily have to specialize in residential or commercial properties. They simply connect buyers with sellers and make profit through this transition.
Earnings: About $94,000 annually
Real Estate Investors
The real estate investor’s job is all about purchasing assets and adding more value to them. Next comes reselling them at a higher price. The investor’s job is simple in theory. But it actually requires knowing when and where to sell. The latter itself requires a set of top-notch skills toup the value of the properties they purchase.
Earnings: About $60,000-$124,000 annually
Acquisitions are all about seeking out new investment opportunities and ensuring that the deals are closed. Because of the specificity of this role, a background in finance, business, or marketing is required here.
Earnings: $80,000-$200,000 annually
Developers are in charge of building the property, from start to finish. They manage contractors and subcontractors and work with them to design, evaluate and construct a new property.
Earnings: About $73,000 annually
Real Estate Trust Analyst
REIT analysts perform analyses on potential business and investment opportunities. Apart from researching, analyzing, and monitoring the real estate market, they also oversee leasing, financing, property acquisitions, and disposition marketing.
Earnings: About $50,000-$150,000 annually
Relations consultants communicate with investors and look for potential projects to take on. They handle the relationship between the company and its shareholders, arrange team meetings, and make investment reports.
Earnings: About $97,000 annually
Asset managers are responsible for the finances and general operations of the company’s portfolio. This is a highly collaborative role. Here, asset managers work under the guidance of the vice president or senior vice president. And they akso collaborate with other departments, such as finance, accounting, and so on.
Earnings: $250,000 annually
Real Estate Property Appraiser
A real estate property appraisal is all about determining and appraising the worth of a particular property. They take into account a wide set of general and special economic factors.
Earnings: About $53,000 annually
Real Estate Attorney
Real estate attorneys handle legal disputes regarding property ownership, like issuance of titles, documentation, and so on. They also mediate between the buyers and sellers and offer legal advice to both parties.
Earnings: $119,000-$125,000 annually
The real estate industry is incredibly fruitful, as it continues to grow over the weeks, months, and years. You can take full advantage of that growth not just by investing, but also by building a career there.
Doing so requires time, patience, and hard work building the experience and the skills needed. Educating yourself the available opportunities and what it takes there is a giant step. But don’t stop here! Put in the work & get more done now… Develop your skills, make a killing resume, and go nail that interview!