According to many, real estate is the gold bar of all investments. It has a good record and offers a good cash flow. As an investment, it is dependable, and it is satisfying to physically look at a building on your own, instead of looking at stocks on a screen.
When the economy took a nosedive, REITs happened to be one of the most growing industries that government pays serious attention to. Most investors consider it a dependable source of income and heavily invest in it. Such huge inputs equate to numerous job opportunities.
However, just like any other kind of investment, real estate also has barriers to entry. These barriers include capital, obtaining a sizeable loan, the learning and the time it takes, and even the money needed for taxes and property maintenance
Thankfully, there is a way to go around investing in real estate without personally owning the buildings. It is the Real Estate Investment Trust (REIT). You might have come across real estate investment trusts (REITs) and many other career paths when making your research. However, the question that is likely running through your mind may be, “is real estate investment trust a good career path?” Yes, you can, and it is for some good reasons!
If you’ve got it in mind to choose a real estate investment trust as your career, then you are on the right track. So, sit tight, as I take you through the nitty-gritty of this money-spinning career path, and at the end of it all, you will be able to make the right choice.
What Are Real Estate Investment Trusts?
In simple terms, REIT is an asset fund that is invested in income-generating real estate. The operation of the funds is by the owners of the companies or the shareholders.
They invest these funds in assets such as warehouses, schools, hotels, hospitals, etc. An interesting fact about REITs is that government provides a tax consideration that gives a juicy return on investment to all stakeholders.
Is Real Estate Investment Trust A Good Career Path?
Yes! In fact, it is more than evident that the real estate investment trust industry is a great sector with exponential growth over the years. This growth has also led to a synonymous rise in the career opportunities it offers to people of different categories.
For this reason, as well as other reasons outlined below, the REIT industry can be said to be a good career path;
Potentials of earning in real estate
There’s no limit to how much you can earn either in salary or annually. As your career is majorly your business, so your income will depend on how well you can grow your business.
The major reason a lot of people go into real estate is that it is very lucrative but at the same time, requires hard work.
Even though it’s hard work, if you can see it through and serve your clients well, you will surely be successful in the business. Don’t go into this business just for the money, you’d be doing it for the wrong reasons.
Try not to lay too much emphasis on the money you’re going to make, focus on your client instead. If you can always put your clients’ needs first, you’ll always make a sale. Help people achieve what they dream. Then you’ll surely be successful.
You are your boss
A majority of real estate agents work independently. If you are choosing to be a real estate agent, you get to work in your own time and decide for yourself how to manage your priorities.
You have the opportunity to work from the comfort of your home, set your own goals, and reap the rewards of your successes. Being a boss of your own is one of the incentives for making a career in real estate.
Careers in real estate is a quick process compared to other careers
The process of making a career in real estate consumes much less time than, say, becoming a surgeon.
It doesn’t mean that it’s an easy road either, but simply that opportunities are readily available regardless of background. Becoming a real estate professional is a rewarding reality.
What Is The Average Salary For Jobs In The Real Estate Investment Trust Sector?
Salaries vary and is quite encouraging. It differs based on the companies. According to a report from the US of Labour Statistics (BLS), the median salary as of 2021 is as follows:
- Public Relations and Fundraising Managers = $119,860
- Construction Managers = $98,890
- Property appraisers and assessors = $61,340
- Real Estate Appraisers = $61,340
- Property, Real Estate, and Community Association Managers = $59,230
- Lodging Managers = $59,430
- Real Estate Brokers and Sales Agents = $48,770
- Realtors = $48,770
- Real Estate Administrative Assistants = $39,680
However, note that the average salary varies and is dependent on factors such as location, negotiation power, and qualification. More so, some companies also give bonuses and various incentives to encourage employees.
Best Paying Jobs Available in The Real Estate Investment Trusts?
The opportunities that you can venture into in real estate are vast. You can get high-paying jobs in the following areas;
1. Real Estate Property Appraiser
Appraising properties is an important part of property acquisition. As a property appraiser, you are needed by anyone looking to purchase a successful asset. It is a crucial position, which is why not just anybody can assume it.
To know the real value of a property before investment, an expert must analyze it. The analysis will show the total revenue the property should generate.
Property appraising is a high-paying job because it requires valid certification and license before practice. Depending on the market, you can earn up to $61,000 per annum.
2. Real Estate Investor
Being an investor is a sort of self-employment. An investor buys assets, waits for them to appreciate, and then resells the asset at a price that gives him more returns.
Its downside for starters is that it requires a good amount of capital to start. However, it is easier if you have sources that can partner with you. The average income of an investor in real estate is $130,000, again, depending on the market.
3. Property Manager
Management of an asset is just as essential as buying the property. If there is no proper management, return on investment will take a nosedive. A property manager is a kind of supervisor of the real estate and ensures that they are in good condition.
The position of a property manager is significant because they help determine the worthy and marketable a property is The average income of a property manager is about $54,000 per annum which depends on the location of the property and of course, the market
4. Real Estate Agent
The basic job description of a real estate agent is to provide potential investors with valid information that will help them decide on real estate investment.
Real estate agents mostly deal with hotels, residential homes, condominiums, commercial structures, warehouses, and underdeveloped lands.
An agent’s job is very essential because investors have only them to rely on to make decisions. The real estate agent plays the role of a middleman in a business setting. Sellers meet buyers through them.
Real estate agents make good money because of the role they play. The average salary ranges from $48,000 – $90,000 per annum.
5. Real Estate Broker
Brokers work hand-in-hand with real estate agents. The roles are similar with a bit of difference. A broker can work for a brokerage firm and can be self-employed too.
A broker’s major role is to assist investors with data acquisition, and analysis, as well as provide feedback from the data analysis. The knowledge of an agent is a good foundation if you want to be a good broker.
The broker’s job is tasking because they have to work single-handedly at times. An average salary is $73,000 per year.
Things to consider before seeking a career in Real Estate Investment Trusts
There are various considerations you need to make before deciding on a career path. Here are some of the conditions peculiar to REITs, all of which are important;
1. Opportunity to Purchase Partial Shares
Because of the huge amount of money required for the business, it is sometimes quite challenging for companies to raise the entire capital for the business.
The good news is, that REITs provide a leeway for companies to purchase partial shares. This helps small investors to invest in the industry.
2. Expansion of Portfolio
An interesting fact about REITs is that it allows you to diversify your portfolio such as residential and commercial properties. You can skip the risk of putting all of your efforts into one avenue.
3. REITs are not very Transparent
Another interesting thing about REITs is that they do not own properties individually. The only facts open to the public are the operating costs, gross revenue, and net income of companies instead of the properties they own.
4. Loans are the major source of Funds
The major way of financing REITs is debt as well as the payment of dividends to investors.
When the value of a property depreciates, it can lead to the company going bankrupt. This, in turn, results in workers losing their jobs.
Benefits and Downsides of Working in Real Estate Investment Trusts
Similar to all investments, there are always pros and cons to REITs that need to be considered before investing:
Benefits
- Diversification is possible within the market by holding an interest in different properties just with as few dollars as possible.
- Many investors take the risk instead of an individual.
- Real Estate Investment Trusts pay well in dividends.
- They offer high liquidity
- The properties concerned are managed by professionals
- Depreciation expense can minimize taxes on shareholders’ dividends
Downsides
- REITs generally experience a minimal level of growth at a time
- Significant risks. Do your research before investing and consider all factors.
- Investors always have to relinquish control over decisions
- REITs will attract high management and transaction fees, which lowers the shareholder payout.
Top 8 Companies In Real Estate Investment Trusts
1. Motto mortgage
Headquarters: Denver
Average employee: 370
Revenue: $68.8m
2. Homie
Headquarters: South Jordan
Average employee: 320
Revenue: $62m
3. Monument Realty group
Headquarters: Frisco
Average employee: 240
Revenue: $41m
4. HqO
Headquarters: Boston
Average employee: 230
Revenue: $37m
5. National Equity Fund
Headquarters: Chicago
Average employee: 210
Revenue: $33.7m
6. Fund That Flip
Headquarters: New York
Average employee: 150
Revenue: $24m
7. New Western Acquisitions
Headquarters: Irving
Average employee: 910
Revenue: $192m
8. Haven Residential
Headquarters: Louisville
Average employee: 85
Revenue: $12.9m
Is choosing a career in REIT ideal?
A career in REITS is suitable good for those who are familiar with or perhaps interested in the real estate market. If you want to make a career out of it;
- You have to develop confidence in what you can do
- You need to be able to take chances, as a property can lose value at any time, regardless of your competence or abilities.
REITs have been progressing all over the world. It offers you profitable job opportunities that can bring in a sizeable amount of money in the span of a short period.
Final thoughts – Are Real Estate Investment Trusts A Good Career Path
We have seen significant growth in many markets as our economy emerges from a deep recession. However, the real estate market has lagged.
The good news is that there are great long-term investment opportunities, especially in the form of real estate.
REITs are a way to diversify into the real estate market and can be an attractive investment that generates income in a low-interest rate environment.
