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The Best Paying Jobs in The Real Estate Investment Trusts Industry (Career Path)

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Are you considering kicking off your career in real estate investment trusts? If yes, you might be thinking about the number of job opportunities available in the REIT. So, how many jobs are available in real estate investment trusts?

Well, there are 326,000 jobs available in the real estate investment trust. In addition, about 3.4 million indirectly related jobs are also available in the U.S. The demand has gradually risen in recent years and is projected to grow further.

In this article, we will tell you about some of the highest-paying positions in real estate investing. However, let’s first discover the term REITs, why they’re essential, and how to invest in them.

What are Real Estate Investment Trusts [REIT]?

Real Estate Investment Trusts (REITs)  are trusts, corporations, or associations that own, manage and invest in income-producing real estate such as shopping malls, offices, hotels, parks, and buildings. 

It is a type of security that allows investors to pool their money to purchase real estate assets that are managed by professionals. It is a sort of passive real estate investing

Investing in REITs can be a great way to generate income and build long-term wealth.  As the underlying real estate assets increase in value, so does the value of the REIT shares, which can be publicly traded on major exchanges or private. 

How Does It Work?

Congress established real estate investment trusts in 1960. The goal was to provide everyone with the opportunity to profit from investing in income-producing real estate. Investing in a REIT is similar to investing in other industries. 

A REIT combines money from institutions and individuals to buy real estate projects that they either rent or sell. The Unit Holders of this scheme will earn a share from this renting and selling without even buying or managing the property themselves.

REITs can own a wide range of assets, including

  • Apartment buildings.
  • Medical facilities.
  • Hotels.
  • Buildings for offices.
  • Self-storage facilities.
  • Malls are examples of retail centers.

According to the Internal Revenue Code, 75% of the corporation’s revenue comes from real estate sales or real estate interests, or real estate rents. The corporation’s 95% of revenue should be passive, and about 75% of the corporation’s assets should be in real estate.

Types of REIT Funds

Most REITs focus on a specific property type or geographic region; some may invest in various real estate assets. REITs can be categorized based on their ownership structure, the type of real estate they own or finance, or how they generate income. The two most common types of REITs are equity REITs and mortgage REITs.

Equity REITs: 

A type of real estate investment trust (REIT) that owns and operates income-producing real estate, such as office buildings, retail centers, apartments, and warehouses. Equity REITs are the largest category of REITs, and they trade on major stock exchanges.

They generate income from rent payments and selling properties. Equity REITs are attractive investments for income-seeking investors because they offer high dividend yields and the potential for capital appreciation.

Equity REITs are classified into subcategories: office REITs, retail REITs, residential REITs, and industrial REITs.

  • Retail

In retail REIT, the money is made by collecting the rent from tenants. So, if the tenants fail to pay rent due for any reason, a retail REIT would not gain any money or profit.  As a result, they might have to look for a new tenant. Therefore, it is crucial to examine the retail business thoroughly before investing in a retail estate venture. Investing in a domain with less debt and good revenue is profitable.

  • Residential

These are real estate investment trusts (REITs) that own and operate multi-family rental apartment complexes and prefabricated homes. Before investing in this form of REIT, one should consider specific ups and downs of the market.

  • Office

Office REITs are companies that invest in office buildings. Tenants who have signed long-term leases provide them with rental money. Investing in a business located in a developing city is far more profitable than a prime business in a city with less than no growth.

  • Industrial

Industrial REITs are firms that engage in the purchase, leasing, ownership, development, and administration of industrial buildings such as industrial warehouses and distribution facilities. The main advantages of industrial REITs include long-term lease periods, the preponderance of net leases, and rising e-commerce demand in which the tenant covers the operational expenditures.

  • Health Care

Health care REITs include nursing homes, hospitals, and assisted living facilities. The healthcare business is particularly vulnerable to changes in public policy, which is a substantial source of unpredictability. The examples include CareTrust REIT (CTRE) and National Health Investors Inc. (NHI).

  • Hotel and Resorts

This sub-category includes companies that specialize in the purchase, development, ownership, leasing, and management of hotel and resort assets. With the increase in economic growth, these companies’ outgrowth significantly increases.

  • Diversified

An equity REIT has to operate in at least two different property kinds, such as residential and commercial, to be deemed diversified. The apparent benefit of this category is the ability to diversify one’s holdings across numerous real estate asset types. Examples of it include W.P. Carey (WPC) and Vornado Realty Trust (VNO).

Mortgage REITs

Mortgage REITs, also known as mREITs, are real estate investment trusts that invest in mortgage-backed securities (MBS), securities that represent a claim on the cash flows from a pool of mortgages.

Mortgage REITs’ income is largely driven by net margin interest, which is the difference between the income they make on mortgage loans and the cost of funding these loans. Because of this paradigm, they are potentially susceptible to interest rate hikes.

For example, assume that business XYZ is a REIT and lends money to a real estate developer. The firm XYZ earns money through the interest on its loans. As a result, Company XYZ is a mortgage REIT.

MBS investors get periodic payments that are equivalent to bond coupon payments. It can be a good investment for income-seeking investors, who tend to pay high dividend yields. However, investors should be aware of the risks associated with Mortgage REITS, such as interest rate and credit risk.

mREITs are further sub-categorized in agency mREITs and Non-Agency mREITs.

  • Agency mREITS

Agency REITs invest in MBS, which a government-sponsored enterprise (GSE) guarantees, such as Fannie Mae, Freddie Mac, and Ginnie Mae. The agencies guarantee the principal repayment of the home mortgages in the pools that back the securities, providing the securities a high level of credit safety. However, the MBS agency may lag, particularly when homeowners prepay or restructure their mortgages.

  • Non-Agency mREITS

Non-Agency REITs invest in MBS and are backed by real estate loans that are not insured by the government enterprise. Instead, private enterprises without government support usually undertake the sponsorship. These pools may contain jumbo home mortgages unsuitable for agency underwriting or commercial mortgages. 

Hybrid REITs

Real estate investment trusts that include both equity and mortgage components are referred to as hybrid REITs. Equity REITs hold real estate, and mortgage REITs invest in mortgage loans or mortgage-backed securities. Hybrid REITs aim to obtain the advantages of both with less risk than if they were invested in one or the other by diversifying across both forms of investments.

Are REITs a Good Investment?

With more than 145 million investors, REITs can be a good investment for many reasons. Investors willing to diversify their portfolio without significantly raising risk should consider investing in a REIT. 

REIT does not pay tax at the corporate level giving you a tax advantage.  

Many REITs offer more than 5% of dividend yields, but the typical stocks have less than 2% yield. As a result, investing in a REIT is suitable for anybody seeking more options to reinvest and or earn some extra income. 

Benefits of REITs

REITs offer many benefits that make them an attractive investment option. Here are some of the most prominent benefits of investing in REITs:

High-Profits

REITs have the potential to offer high returns because they are required to pay out at least 90% of their taxable income as dividends to shareholders. It means that they are often able to reinvest their earnings and grow at a faster rate than other types of investments. 

Diversification

By investing in a REIT, you can add another asset class to your portfolio. You can gain exposure to various property types, including office buildings, shopping malls, apartments, warehouses, and more, through diversification. It can help to mitigate risk and improve returns

Transparency

REITs are quite transparent and must adhere to SEC regulations. As a result, it provides an extra layer of security to ensure that the management does not take advantage of the investor’s funds.

How to Invest?

There are many different ways to invest your money, each with its advantages and disadvantages. Buying publicly listed REIT equities, exchange-traded funds, and mutual funds are all methods to invest in REITs. 

You can invest in REITs through the following platforms:

  • Realty Mogul

It is an online trading platform for REITs. With a $1,000 minimum investment, investors can obtain debt and equity investments and “private REITs.” These are comparable to REITs that are traded on the stock exchange.

Realty Mogul includes investments in multi-family houses, offices, retail enterprises, industrial locations, healthcare complexes, etc. More than 175,000 investors have joined this platform. There are some simple steps required to be a part of it:

  • Go to the realty mogul website.
  • Create an online account.
  • Select the investment package according to your budget.
  • Make the online transaction.
  • Your online account is ready. Track your investments at any time with your dashboard.
  • Fundraise

It is an internet platform allowing investors to purchase shares in real estate investment trusts. Fundraise allows investors to diversify their portfolios with as little as $10. You can join this platform by yourself just by

  • Creating an account with the help of a mobile application or website.
  • Select the account level and investment plans from the given options.
  • The company will send you a customized portfolio according to your investment plan.
  • With the help of a fundraising dashboard, you can easily manage your investment on your own.

Ideal for Small Investors

Small real estate investors can now invest in commercial real estate portfolios with the help of RITs. The investment can be in a shopping mall, office building, hotel, etc. The potential benefits that make REITs ideal for small investors are:

  • There is no need to make a large down payment.
  • A mortgage is not required to purchase the house.
  • Investors can make a tiny investment in many real estate holdings for as little as $20.
  • Investing in a REIT reduces the risk of directly owning real estate.
  • In only a few clicks, you may invest in a REIT stock or an ETF (Assuming you already have a brokerage account).
  • Earn assured monthly profits practically every time.
  • If you invest in a REIT through a registered account, such as a TFSA, the dividends you get each month are tax-free.
  • Small investors can expect long-term capitalization.
  • Liquidity is abundant.
  • Protect yourself from inflation.

Real Estate Industry Job Statistics

The job market for the real estate industry is strong, and REITS are in high demand. 

According to the US Department of Labor, there is an increase in demand for property managers, real estate brokers, and sales agents. In 2022, the average annual pay in the real estate business will be $51,220, with hundreds and thousands of people employed across the United States.

The average pay in the REIT industry substantially exceeds that of real estate brokers. As of October 2022, the typical Real Estate Investment Trust (REIT) analyst earned $108,164 per year, which is twice that of real estate brokers and sales agents. However, the typical compensation range is between $76,495 and $145,071. Real estate investment trusts are estimated to generate 2.6 million full-time employment indirectly. 

The Bureau of Labor Statistics projects that employment in the real estate industry will grow more in the coming years. So if you’re looking for a stable career with good job prospects and a solid salary, a career in REITS is an excellent option.

Largest REITS by Market Cap

Market cap is also referred to as market capitalization. It is an investing phrase that refers to the market value of a publicly traded stock’s outstanding shares. We can also say that market capitalization reflects the worth of a company.

Here are the largest REITs by market capitalization:

REITs Location of the Headquarters Market capitalization CEO Name
Weyerhaeuser Washington, USA $27.9 billion Doyle Simons
Crown Castle International Corp. Texas, USA $42.5 billion Jay Brown
Digital Realty Trust California $22.2 billion A. William Stein
American Tower Massachusetts, USA $74.0 billion James D. Taiclet, Jr.
AvalonBay Communities Virginia, USA $23.3 billion Timothy J. Naughton
Public Storage California, USA $38.0 billion Ronald L. Havner, Jr.
Equinix, Inc. California, USA $32.8 billion Peter Van Camp

Types of Jobs in REITS

Looking forward to kickstarting your career in the REITs industry? From entry-level positions to more senior role jobs, there are many jobs available in this industry. Some of them are listed below:

Development Roles

Development managers oversee the construction of new buildings or renovations and advise on the best use of space to maximize income. Development roles are essential in a REIT, as they help to ensure that the company’s properties are well-maintained and generate revenue. 

Their role also includes collaborating with finance development. Development roles in the REIT business are in great demand because they pay well, are tough, and are well-regarded. Their average pay is between $62,950 to $83,091. The education required in this field is a graduation degree in real estate and finance. Having good analytical skills is compulsory.

Acquisition Roles

Acquirers are responsible for identifying and evaluating potential acquisition targets, negotiating and structuring deals, and leading due diligence efforts. 

Furthermore, these positions in real estate investment have high pay, with a salary of $80,000 per year. Anyone with a degree or expertise in finance, marketing, business, or capital markets is qualified for this position. To be successful in an Acquisition role, one must have strong analytical skills, experience in the real estate industry, ability to think creatively to solve problems and introduce new investing opportunities.

Property Management Roles

Property managers are responsible for reviewing the REIT’s properties, including rent collection, maintenance and repair, marketing, and lease enforcement. There are no entry-level qualifications to become a property manager. 

Candidates that can handle a variety of scenarios and have solid project management abilities are ideal. The REIT business determines a property manager’s remuneration, but it is between $47,657 and $65,989.

Asset Management Roles

It is among the highest-paying occupations in the real estate investment trusts industry. An asset manager is responsible for the day-to-day operations and works to maintain and improve the value of a REIT’s portfolio. It may involve anything from negotiating leases to overseeing repairs and upgrades.

It includes developing and implementing business plans, monitoring performance, and overseeing capital improvements. Asset managers must have the ability to work with acquisitions, accounting, finance, and development to accomplish their tasks.

They also oversee all aspects of a REIT’s portfolio, including acquisition, financing, capital improvements, leasing, and disposition. Asset managers can earn up to roughly $200,000 per year.

Investor Relationship Roles

IR is responsible for communicating with and managing investor relationships. They typically involve working with a team of professionals to develop and execute strategies for communicating with investors, analysts, and the financial community. The investor relations team will organize the annual meeting and meeting documentation, including the annual report and proxy statement. And they must do all of this per SEC laws.

To acquire this position, the person must hold a bachelor’s degree in finance and accounts. He must be capable of making remarkable presentations and have a good command of the English language. Managing investor relations (IR) plans and analyses of financial tools are the desired skills in a competitive person. The average salary is $104,509 per anum.

Real Estate Sales Supervisor

Real Estate Sales Supervisors manage a team they train and support agents, help them grow their businesses, and provide feedback on their performance. They oversee the business unit’s daily operations, including sales, equipment rental, repair and maintenance, daily locker rental, repair services, guest service trails, and staff management. 

Any person interested in organizing a team, making new clients, collecting and organizing sales data, and managing complicated tasks should apply for this leadership post. However, a bachelor’s degree in marketing, finance, accounting, or business is mandatory. The yearly salary of a real estate sales supervisor is $44,321.

Leasing Consultant

The Leasing Consultant is responsible for generating new prospects, touring clients, and preparing lease agreements. The leasing consultant represents the real estate industry. They help clients to purchase by assisting them in selecting homes and properties that meet their needs and budget.

A candidate with knowledge of the real estate industry and excellent skills in promotion and advertising can apply for this post. A leasing consultant can earn up to an average of $35,500 per year, depending on the organization and its job level. A person with a bachelor’s degree in property management or a related field can be eligible for this post.

Real Estate Property Appraiser

A real estate properties appraiser is a professional responsible for estimating a piece’s value. Appraisers must have the in-depth market knowledge to come up with an accurate estimate.

The person willing to apply for this post must have an appraiser training certificate and other relevant fields of real estate. Real estate property appraisers can earn between $35,000- $200,000 per year. And they must have great listening skills, knows how to communicate with clients, and have strong data analysis and comparison skills.

Real Estate Investor

Real Estate Investor enables people to attain financial independence by investing in real estate. Investors typically employ one or more strategies to generate returns on their investment: fix-and-flip, buy-and-hold, wholesaling, and rehabbing. 

A real estate investor can earn up to $124,000 per year. To be a real estate investor a bachelor’s degree in accounting, business, or finance is required. And the person should have a good command of management and communication skills. It is a well-paying job for those interested in property buying and selling.

REIT Analysts Jobs

As a REIT analyst, your primary responsibility would be to conduct research on REITs and provide recommendations to investors. To succeed in this role, you must have a strong understanding of the REIT industry and the factors affecting REIT performance. You should also be able to effectively communicate your findings to both investors and REIT management teams.

A REIT analyst must have a bachelor’s degree in economics, real estate, or finance. Analytical, research and organizational skills are mandatory.  The salary is around $90,885 but varies depending on different factors, including your state, experience level, skills, and many more.

As the job market tightens, REIT analyst jobs become increasingly more popular and challenging to find. Despite this competition, REIT analysts’ jobs are still one of the industry’s most sought-after positions.

Real Estate Attorney

Real estate attorneys provide legal representation for individuals and organizations involved in transactions relating to selling, purchasing, developing, or using real property. Real estate lawyers draft and review documents, conduct due diligence, represent clients in court, and offer advice on compliance with laws and regulations.

The job requirements include a bachelor’s degree in law or real estate-related subjects. You can easily earn between $119,000 to $125,000 annually.

jobs in real estate industry

Current Available Jobs in the REIT Industry

There are many jobs available for people with a great interest in finance and property dealing. These well-paying jobs provide you with a chance to live the life of your dreams. The table below will give you an insight into some of these well-paying jobs and their salaries.

Job Title Income
Director of Real Estate and Facilities $130,000 per year
Real Estate Agent $100,000 per year
Director of Acquisition $125,000 per year
Property Manager $90,000 per year
Construction Supervisor $89,000 per year
Accounting Manager $90,000 per year
Financial Analyst $80,000 per year

These are some of the jobs, but you can search and apply for new jobs online or by visiting your nearest real estate company.

FAQs

Where is the Most Money in Real Estate?

It depends on your investment goals and objectives. If you’re looking for high current income, then mortgage REITs may be a good option. Mortgage REITs make more money as compared to Equity REITs when rates of interest are rising. No matter your goals, REITs can offer you exposure to the real estate market while providing some key advantages that other investment options may not offer. 

How many Industrial REITs are there?

There are many different REIT types, but industrial REITs are relatively rare. According to some estimates, there are only 13 industrial REITs. The largest industrial REITs include Rexford Industrial Realty, Prologis, and Duke Realty Corporation, with a market capitalization of $10.3 billion, $88.8 billion, and $19.5 billion, respectively.

What are the Disadvantages of REITs?

REITs can be a good investment for those looking for income and diversification, but it’s important to understand the disadvantages before investing. Here are some of its few drawbacks:

  • Market risk
  • Dividends are subject to standard income taxation.
  • Possibility of expensive management and transaction fees
  • Low growth

What is the Average Return on a REIT?

The average return on a REIT, or Real Estate Investment Trust, can vary depending on the particular trust and the overall economic conditions. Most investors use the FTSE NAREIT Equity REIT Index to assess the performance of the US real estate market. 

The average annual return of the index’s 10-year was 8.34% in June 2022. The index returned 9.05% during 25 years, compared to 7.97% for the S&P 500 and 7.41% for the Russell 2000. However, as a general rule, REITs give investors higher returns than other investments, such as bonds or stocks. It is because REITs are required by law to distribute most of their profits to shareholders, providing a consistent income stream.

Conclusion

REITs is an emerging industry of the future. With the increase in its growth, job opportunities are also increasing. Some jobs require a bachelor’s degree, while some require training courses in some fields. 

An individual can earn more than six figures depending on their academic qualifications and ability to perform tasks. With such a wide variety of jobs available, there is sure to be a position that is a perfect match for your skills and interests. So don’t hesitate to start your career in the REITs industry today.