Real estate has become one of the most lucrative careers of this decade and it intrigues people of all generations. The industry itself has a lot of opportunities to offer with varying benefits. Because of its continued growth throughout the years, even during the pandemic, people are more invested in exploring REITs – both in terms of investment and jobs. Getting best paying jobs in real estate investment trusts is although competitive but promises long-term advantages.
REITs offer plenty of opportunities with several roles to contribute to. We have compiled a complete guide exploring the number and types of jobs in real estate investment funds and how they can help you make a comfortable living. But before that, let’s have a look at what REITs are and if are the best real estate investment.
What is a Real Estate Investment Trust – REIT
REITs refer to real estate investment funds – companies that finance income-generating real estate properties across multiple sectors. The United States alone has around 225 REITs with a $1 Trillion combined market capitalization. They offer an investment opportunity for investors by letting them own a share of real estate through which they get a monthly cash flow in the form of dividends. So this means that almost any small investor can become a significant part of the real estate industry minus all the work that comes with it – managing property and finance, bookkeeping, etc. In short, REITs are a great way of earning passive income via real estate.
A REIT has several profitable real estate properties and assets that can be spread among real estate asset classes. Compared to traditional real estate investment opportunities, REITs are highly liquid and sold rather quickly at a low cost. Through long-term lease agreements, REITs are modeled on mutual funds and revenue and security. With REITs growth and diversification, it is evident that the sector will be many jobs available in real estate investment trusts as its job market is expected to grow 10% per year. So you can expect more high-level real estate investment jobs in the future.
Types of Real Estate Investment Trusts
The two main types of real estate investment trusts are mortgage REITs and equity REITs
As the name suggests, these REITs prefer investing in mortgage-related commodities instead of physical properties. They purchase commercial or residential mortgage-backed securities. Also, they offer a significantly greater financial margin. Like mutual funds, most of them are traded on famous stock exchanges.
Equity REITs generate revenue through physical assets and can be considered a classical real estate investment option. An equity REIT is an operator and a full-stack owner of that property. However, they tend to hire third-party services for the management of assets.
Other Types of REITs
Industrial – also known as logistic REITs, they serve the industrial sector by owning and managing industries, warehouses, and factories and looking over distribution facilities.
Healthcare – owns and manages hospitals, healthcare facilities, assisted living, and so on.
Office – invests in office properties or certain geographical places they can lease to other groups.
Hospitality – firms that build, own, buy, operate, or lease income-producing resorts and hotels.
Residential – these REITs mainly deal with rental properties; hence, their revenue comes through apartment complexes.
REITs – An Ideal Option for Real Estate Investors
One good thing about REITs is that they offer huge diversity to an investor’s portfolio without putting their money into a huge risk, as in the case of stocks. It is recommended by investment advisors to invest in real estate through REITs instead of stocks because they can survive an economic crisis by mostly staying stable while also ensuring a stable cash flow.
Investors who have just started in real estate and do not want to lose too much money can start with commercial real estate investment funds. They offer one a chance to be a partial owner of a profitable shopping center or office tower. So, it’s a great way to grow wealth, especially for small investors.
Number of Jobs Available in Real Estate Investment Trusts
REITs offer a multitude of options when it comes to both investments and long-term career building. The sector of REITs directly employs 308,000 on a full-time basis. However, the trusts are indirectly linked to a total of 2.9million jobs. The jobs vary in payment from high-paying positions to average-income positions. REITs offer numerous high-paying career opportunities with an average yearly salary of $75,000.
8 Types of Best-Paying Jobs in Real Estate Investment Trusts
In addition to an opportunity for investors, a wide range of high-paying jobs in the real estate investment trusts industry can bring a good change in your career. Let’s look at the nature of these jobs and how well they pay from the stats collected by the U.S Bureau of Labor Statistics.
Property Management Jobs
Average National Salary: $59,230 per year and $28.47 per hour.
Number of Jobs Available: 392,900 as of 2021.
Job Outlook from 2020 to 2030: 3%
Required Education: High school diploma.
The job of real estate investment property management includes taking care of and managing, leasing, and maintaining real estate properties like rental houses, apartment complexes, and commercial properties, as well as the people residing there. Several responsibilities are involved in this, and it also demands your complete attention around the clock. Also, you’ll require good leadership and excellent communication skills in addition to staying well-organized to succeed.
Being the manager, the management staff is to report to you while your role is to stay connected with the property upkeep and related responsibilities. An ideal candidate for this job has great project management skills and can handle difficult situations with the tenets.
Real Estate Agents
Average National Salary: $48,770 per year and $23.45 per hour.
Number of Jobs Available: 562,110 as of 2021.
Job Outlook from 2020 to 2030: 5% (faster than average).
Required Education: High school diploma or equivalent.
Real estate agents are involved in helping businesses and people purchase/sell real estate property or investments. You act as a liaison between the seller and buyer during this process. REITs often need realtors to get clients/investors for their real estate. Being a realtor offers huge income potential, career mobility, and job flexibility. A successful realtor is efficient at connecting sellers and buyers, has good negotiation skills, can greatly help with real estate staging for tours, and stays organized by using social media scheduling tools.
However, a negative aspect of this job is that you have to invest more time outside your 9-5 work schedule, which can ruin your work-life balance. Furthermore, the biggest part of this job is client networking so you might face slow and stressful work days from time to time.
If you are good at connecting with people and do not wish to be tied to a certain work routine, then being a real estate agent will be an ideal option.
Average National Salary: $95,570 per year and 445.95 per hour.
Number of Jobs Available: 373,800 as of 2021.
Job Outlook from 2020 to 2030: 9% (faster than average).
Required Education: Bachelor’s degree.
A REIT analyst works with realtors and finance groups, contributing to the research, monitoring, analyzing market trends, and reviewing financial statements that contribute to real estate underwriting. An underwriter is much more likely considered a financial expert and hence requires good judgment and evaluation skills, so you have to equip yourself. REIT’s basic job duties are as follows:
- Analyze real estate market trends, make predictions, and build a report.
- Assist with a loan closing.
- Measure the risks involved in underwriting a real estate property in a portfolio.
REIT analysts hold a critical position in the REIT market, meaning it is one of the best-paying jobs in real estate investment trusts. There is also a good chance that you can work from home. Furthermore, around 10% of analysts earn more than $120,000 annually. Although the job can sometimes be stressful, it is surely financially rewarding.
Real Estate Property Appraisers
Average National Salary: &61,340 per year and $29.49 per hour.
Number of Jobs Available: 76,100 as of 2021.
Job Outlook from 2020 to 2030: 4% (almost average).
Required Education: Bachelor’s degree.
An appraiser’s main responsibility is real estate property valuation. They will determine the value of a residential or commercial property based on current market conditions and changes in market trends due to economic variations, the property’s current state, the need for property inspection, and other crucial factors. The background of your educational degree must be related to economics or real estate for this job. But that alone does not qualify you as an appraiser. You will need a license and on-the-job training before working as an independent appraiser and building your own company.
Real Estate Attorneys
Average National Salary: $127,990 per year and $61.54 per hour.
Number of Jobs Available: 833,100 as of 2021.
Job Outlook from 2020 to 2030: 10% (faster than average).
Required Education: A professional degree.
A real estate attorney is amongst the best-paying jobs in the real estate investment funds market. They enjoy a high monthly salary and job stability. These attorneys at law specialize in real estate and handle legal disputes related to land and property rights, property distribution and ownership, title insurance, and title transfer. You must review any related legal contracts and documents, facilitate funds transfer and provide legal advice to your client based on whom you represent (a buyer or a seller).
To be eligible for this job, you have to pass the bar exam and also clear the test before you start practicing. It can all be too challenging and might take many years, but eventually, the job will be financially rewarding. Top real estate attorneys can earn up to $450,000 per year. Another perk of this profession is a flexible working schedule.
Real Estate Developers
Average National Salary: $103,616 per year and $50 per hour.
Number of Jobs Available: 54,981 as of 2021.
Job Outlook from 2020 to 2030: 4%
Required Education: High School diploma.
Real estate developers are responsible for everything between buying and selling a property. Developers are involved in developing the property, coordinating the construction and design of the whole infrastructure, and ultimately selling it. Every aspect of this job requires funding, from buying land to developing it. This is because you, as a developer, must also arrange home staging, payments to the contractors, and so on. So that is why, in addition to your finances, you also need funds.
Although it is a highly-paid job, it is heavily influenced by real estate market trends, and economic changes will often impact your business. Another negative aspect of this career is the instability and management stress while handling any construction project. The job’s nature demands working for several hours, talking to many people every day, and often multitasking.
Asset Management Jobs
Average National Salary: $131,710 per year and $63.32 per hour.
Number of Jobs Available: 730,800 as of 2021.
Job Outlook from 2021 to 2031: 17% (much faster than the average rate)
Required Education: Bachelor’s degree.
Asset managers operate and manage the financial health of real estate investment funds. The assets will be managed by the client’s agreed preferences and investment goals. As a manager, you will be closely contacting other real estate groups like acquisition, development, finance, and accounting. It is amongst the best-paying jobs in real estate investment funds, and you can ace your role with the right skill set.
Real Estate Acquisition Jobs
Real estate acquisition position involves locating better investment options for their clients. There are plenty high paying jobs in real estate investment trust related to acquisition. But to qualify for the job, you will need a bachelor’s degree or some background knowledge of finance, marketing, and capital markets.
The sector of real estate investment funds is expanding exponentially. To start any jobs available in real estate investment trusts, you have to stay organized and regulated. Additionally, some jobs require a background in economics and finance. However, most ensure a consistent cash flow, security, and insurance. Once employed, it will be easier for you to rise through the ranks