REIT stands for Real Estate Investment Trust. Real estate investment trusts are progressing as real estate industry grows. There are many opportunities for career advancement in a REIT. What are the jobs available in real-estate investment trusts? and What are the roles available in REIT?
This guide will answer the question; How many jobs are available in real estate investment trusts, and by the end of this blog post you will find information about the available jobs, how these real estate investment trusts operate, and many other details.
What are Real Estate Investment Trusts?
There are over 225 REITs in the United States with a combined market capitalization exceeding $1 Trillion. A real estate investment trust is an investment vehicle listed on the Stock Exchange. Investors can also buy REIT-related ETFs to spread their investments across many real estate asset types.
A REIT is a company that owns and manages the income-generating real property and other income-producing assets. The REIT may also own buildings such as offices, hotels, resorts, and others. The REIT doesn’t intend to resell the real estate it has purchased. The REIT instead uses the property for development. The property is then used to generate income as an investment portfolio.
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These assets can be purchased and sold quickly by investors at a very low price. REITs have better liquidity than traditional real estate investments. The New York Stock Exchange, American Stock Exchange, and the NASDAQ have listings for REITs. Investors can also get indirect access through mutual funds to REITs.
Groups of investors can invest in REITs to make large-scale real estate investments that would otherwise be impossible. A REIT allows smaller real estate investors to make more substantial investments.
Analysts predict that the REIT sector will grow and diversify, with many more job opportunities in the industry.
How do Real Estate Investment Trusts Work?
In 1960, Congress established real estate investment trusts. This was done to allow everyone to have the opportunity to invest in income-producing real property. It is easy to invest in a REIT like in any other industry. Stock is bought by investors, while shareholders receive the majority of the income from real estate investment trusts.
Congress first created REITs under certain rules. All REITs should be modeled after mutual funds and treated as corporations by the Internal Revenue Code.
Additionally, REITs must own or finance real property and have a long-term investment plan.
The Internal Revenue Code states that 75% or more of a corporation’s income must come from rental from real estate, real-estate interest, and the sale of real property assets. The corporation must own at least 75% real estate assets and 95% passive income.
Are REITs a good investment?
A REIT is a great way to diversify your investment portfolio and not increase the risk. While there is always a risk, investing in REITs can help you grow your wealth.
A REIT doesn’t have to pay corporate tax because it works. Dividend stocks are often subject to double taxation at individual and corporate levels. REITs do not have to be taxed at the corporate level. This is a significant tax advantage.
REITs must pay 90% of the taxable income to shareholders. While REITs can yield a higher dividend than average stocks, many have yields exceeding 5%. Average stocks yield less than 2%. A REIT investment is a great option for anyone looking to earn income or reinvest.
The value of real estate tends to increase over time. Many REITs can capitalize on this by selling their valuable properties and investing the capital elsewhere. These strategies are the reason many REITs generate returns that exceed the market.
For smaller investors, REITs can be a great choice.
A small number of real estate investors can make commercial real estate investments that are otherwise impossible. Many people cannot afford to buy an office building or shopping center. The creation of REITs by Congress has made it possible for anyone to invest in these types of buildings and receive a return.
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A solid financial plan requires diversifying your investment portfolio. REITs are similar to investing in the stock exchange, but instead of equities, it is real estate. As real estate is a stable asset that can be used even during economic downturns, investment advisors recommend real estate as part of an investment portfolio. A steady income is often a result of investing in a REIT.
It can take time to sell real estate if it is owned. A REIT investment can be bought or sold in a matter of seconds. This liquidity makes REIT attractive.
Real Estate Industry Job Statistics
The United States Department of Labor continues to show a growing demand for property managers, real estate brokers, and sales agents. The average real estate agent’s annual salary is $51,220 in 2022. There are hundreds of thousands of agents and property managers across the US.
Average wages in the REIT industry are far higher than those of real estate agents. As of October 2022, the average Real Estate Investment Trust (REIT) analyst makes $108,164 annually. This is twice as much as real estate brokers or sales agents. The salary range for REIT analysts is between $76,495 to $145,071.
Two hundred seventy-four thousand are employed full-time by REIT companies. Real estate investment trusts indirectly account for approximately 2.6 million jobs.
Anyone interested in a career as a REIT manager will be happy to hear that there is growth. This gives you plenty of opportunities for employment and a higher salary than in other areas of the realty industry.
Types Of Jobs Available In Real Estate Investment Trusts
Many jobs are available in the real estate investment trust (REIT) industry. Here are the leading positions available to help you understand the situation.
Development is responsible for building new projects. This role is perfect for those looking for project management work. This role requires you to collaborate with others to finance development.
The REIT industry is highly sought-after for its development jobs. They pay well, are challenging, and are highly valued.
Real estate investment trusts have a variety of acquisition jobs. These include sourcing investment opportunities. These roles ensure that deals are done. These roles are also in REITs, and they pay well. This work is heavily finance-related, and anyone with a background in marketing, finance, or capital markets will be able to do it.
Roles in Property Management
Property managers oversee the management of a property, including leasing, maintenance, collections, and any other duties as needed.
You don’t need to meet the minimum requirements to become a property manager. The ideal candidate is someone who can manage multiple situations and has good project management skills.
It is possible to start as a property manager within a REIT. There are many career advancement opportunities, especially if other roles are available within the REIT.
Asset Management Roles
Asset Management is the job that manages the portfolio of real estate investment trusts. Asset managers must manage client assets according to agreed investment goals. Asset managers manage client portfolios by organizing, maintaining, and updating them.
Asset managers must be able to work with many other teams. Asset managers can work with finance, accounting, development, and finance to achieve results. They must also ensure compliance with SEC, REIT regulations, and Sarbanes Oxley.
It is not uncommon to work in property management or acquisitions and then manage residential or commercial properties. Anyone with the right skills can also apply for an asset management position.
Roles of the Investor Relationship
Investor Relations is responsible for managing all communications with REIT shareholders. This role is well-paid and suitable for those with accounting or finance backgrounds.
The investor relations team will arrange the annual meeting, meeting documents, and proxy statements. All of this must be done in compliance with the SEC regulations.
This role would suit anyone with an accounting or finance background.
What is the New Real Estate Investment Trust Jobs?
If you are curious about how many jobs there are in real estate investment trusts, data from LinkedIn shows that there are currently more than 1278 positions.
The REIT sector is experiencing rapid growth. Not only do investors need to be sourced, but many other support roles also require regular filling.
A real estate investment trust (REIT) is an investment vehicle listed on the Stock Exchange. There are over 225 REITs in the U.S. with a combined market capitalization exceeding $1 Trillion. The New York Stock Exchange, American Stock Exchange and the NASDAQ have listings for REITs. US Department of Labor: The average real estate agent’s annual salary is $51,220 in 2022. REITs are similar to investing in the stock exchange, but instead of equities, it is real estate.
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Real estate investment trusts (REITs) must pay 90% of the taxable income to shareholders. Are REITs a good investment?
The United States Department of Labor continues to show a growing demand for property managers, real estate brokers, and sales agents. Two hundred seventy-four thousand are employed full-time by REIT companies. Real estate investment trusts indirectly account for approximately 2.6 million jobs. The salary range for REIT analysts is between $76,495 to $145,071. This is twice as much as real estate brokers or sales agents.
The ideal candidate is someone who can manage multiple situations and has good project management skills. There are many career advancement opportunities within the Real Estate Investment Trust (REIT) sector.
Reference Rick Orford