Getting one of the best-paying jobs in a real estate investment trust has increased exponentially. This is due to the returns that real estate rakes in yearly.
As a norm, any investment that involves land yields a good amount of return. So for your sake, this article would look at the best-paying jobs in real estate investment trusts.
Even if you had zero knowledge about real estate investment trust, be confident in the fact that this article would take you from zero (0) to at least a six (6)
Real Estate Investment Trust; How It Works
A real estate investment trust is simply any company that owns income-producing real estate. The types of real estate they own could be hospitals, cell towers, offices, retail centers, warehouses, hotels, commercial forests, etc.
And this sector works in such a way that investors earn from real estate investments (dividends); without having to finance, manage or buy the properties themselves.
Though the income generated will be steady, the capital invested appreciate almost insignificantly.
Real Estate Investment Firm Sectors
Various sectors have been associated with the real estate investment trust, but the notable ones are; healthcare-related real estate, raw land, office, residential, industrial, commercial real estate, etc.
Why should one invest in real estate investment trusts
After understanding what a real estate investment trust is, you should also be enlightened on its benefits of it.
No involvement with management issues:
Unlike a real estate investor whom tenants can call in the middle of the night to complain about damages, you would be free from such.
As a shareholder in reals estate investments, all you would do is invest, and get your returns while the estate property managers handle all issues.
Selling your shares as a real estate investment trust holder is easier than buying a land or property. Landed properties take months or years to sell.
The best part is that you can buy your shares back when you are ready, and this opens you up to make more money too.
Passive income generation
Do you seek to make passive income? Then you need to invest in real estate investment trusts. With real estate investment trusts, you can earn high in form of dividends.
Different Types Of Real Estate Investment Trust
Now, you would get to see the different types of real estate investment trusts that you can engage in.
1. Hybrid REIT
The hybrid real estate investment trust is a combination of both equity and mortgage REITs. For one to be classified as a hybrid REITS, one would own properties, and also hold a mortgage.
2. Equity Real Estate Investment Trust
The majority of the REITs are equity REITs. For one to be classified in the equity frame of REITs, one would have to manage real estates that produce income.
Revenues would then be generated primarily through rents, not by property resale.
3. Mortgage REITs
This is the third major real estate investment trust. For you to be in this category, you would need to lend money to owners and operators of real estate, either through mortgages and loans or indirectly through mortgage-backed securities.
From this, you would earn by the getting interests from the loan borrowed to real estate owners
Best Paying Jobs in Real Estate Investment Trusts
By now, you should have gained a solid background in real estate investment trusts. But that is not why you opened this article right?
Now we would dive into the best paying jobs that real estate investment funds have to offer you.
1. REIT Analysts
Average salary: $82,448
Investors are attracted to a project by real estate investment analysts who handle the financing, marketing, and attracting of investors.
This is a competitive position that necessitates strong leadership and interpersonal skills. As an Analyst, you will study the current real estate market, forecast future trends, and implement appropriate business strategies.
The Prerequisites for this position include but are not limited to:
- A thorough understanding of the field of real estate
- Working knowledge of current business trends
- Understanding the micro and macro markets, as well as investment opportunities
- Communication, problem-solving, and analytical abilities
- In addition, you should be familiar with the projects’ monetary obligations and operational procedures.
2. Real Estate Agent
Average national salary: $66,000
As a real estate agent, you will help people buy a home by putting them in touch with people who are selling.
The ability to work with both commercial and residential properties makes this job one of the most lucrative and well-paying in the industry.
Condos, luxury homes, and single-family residences can be sold to interested buyers if you handle residential properties.
In commercial real estate, you’ll have to sell office spaces, warehouses, luxury hotels, and shopping centers.
However, you will need to provide full support to the buyer from start to finish during the transaction. Financial estimates, documentation, and rates of return are all included in this.
The pay depends on the commissions earned from sales deals that you successfully close.
3. Accredited Real Estate Property Appraiser
Average national salary: $58,000
Professionals in the field of property valuation are known as appraisers. Commercial real estate or residential property can be appraised too.
To appraise a real estate property, a variety of economic factors will be used to determine the value of a piece of real estate.
To land this position, you’ll need to understand how the real estate market functions and how factors like location affect a property’s value.
Before becoming a property appraiser, you must have a license. Passing the appraiser education course is required.
This job requires a bachelor’s degree in finance, economics, or another related field.
4. Job as an Attorney in Real Estate
Average national salary: $123,951
This is one of the best-paying jobs in real estate investment trusts. Real estate investors can also make a lot of money by becoming attorneys. Their major concern would be to resolve disputes over property ownership and transfers.
Titles, transfers, documentation, and other legal issues about real estate properties can all fall under this category.
Real estate investment trusts (REITs) rely heavily on the services of attorneys. They serve as intermediaries between the buyer, seller, and the company, facilitating transactions.
Both buyers and sellers can benefit from their legal advice. As a result, there will be no misunderstandings and no need for litigation during the transaction.
5. Career as a real estate broker
Average national salary: $68,270
When it comes to buying and selling homes or other property, real estate brokers are your best bet.
In the REIT industry, this is a well-paying position. But keep in mind that working as a broker is very different than working as an agent.
Brokers need to have a license and pass a standard qualification exam. Specialization and certification would allow you to work independently or in tandem with the agents.
If you’d like, you can continue your education to rise through the ranks or open your own business. As one of the best paying jobs in real estate investment trusts, you should consider education too.
Some brokers make six figures a year and are well worth the money they charge because of their knowledge and expertise.
6. Property Management
Average national salary: $101,000
An entire real estate project’s day-to-day operations are handled by a property management department.
Administrative, financial, property management and leasing responsibilities all fall under this category.
These four areas might have a presence in this department –
- Marketing and sales.
- Management of risks
- Management of rental properties and their occupants
With the help of these experts, real estate investors can get the most out of their investments. As a result, the division is preoccupied with developing an appropriate spending plan.
The department’s rental rates may be determined by this budget. Aside from facility management, the property management team is in charge of all other clerical duties.
The property manager is the most important position in this sector or department.
It is your job as a property manager to handle all aspects of the property. Investors must receive payments as promised, and communication must be open and honest.
To be successful in this position, you’ll need strong leadership abilities, problem-solving abilities, and the ability to effectively communicate with a wide range of people.
When applying for the position of property manager you’ll want to have a background in finance, law, or management.
Your daily duties may include, for example:
- Keeping an eye on the property’s plumbing, roof, landscaping, and electrical systems.
- Ensuring that rent is collected on time, and the needs of the tenant are met.
- Keeping track of the property’s taxes and government regulations, as well as any relevant documents.
7. Developer in the Real Estate Industry
National average salary: $73,900
A real estate developer must acquire and develop real estate on previously owned or leased land.
If you want to have a better chance of getting hired for this job, you need to meet these criteria:
- Obtained a bachelor’s degree in civil/business/architecture engineering or management
- Financial planning and project management skills are excellent.
- Extensive real estate industry knowledge
In this job, you’ll have to communicate with a lot of different people daily, so you must know how to speak and write well.
8. Leasing Agents
National average salary: $59,206
This is one of the best-paying jobs in real estate investment trusts. In the real estate industry, Leasing Consultants are the public face. They assist people in locating suitable housing options that are within their means and match their personal preferences.
As a leasing consultant, you’ll have a good shot at a career in real estate investment trusts. It’s a great place to begin a career that will eventually lead to a promotion to a position like marketing director.
Success in this career path requires an extensive understanding of the local real estate market. In this field, the more knowledgeable you are, the more easily you can satisfy your clients’ needs.
You’ll also need to be able to work well with others and be proficient in marketing and public relations. In the hospitality or retail industry, previous experience dealing with people could be an advantage.
National average salary: $120,000
Being an investor in real estate trusts is the most lucrative job we can get. A career in this field has some of the best payoffs.
Investment in real estate entails buying assets, increasing their value, and then selling them for a profit. While this can be a lucrative endeavor, it is not without its challenges.
As an investor, you must be aware of where and when properties are available, as well as when to sell them. This means that you must always be on the lookout for new information about the market.
To help you narrow down your search, here are some things you need to be an investor:
- Possession of the money needed to buy a house
- Experience with a variety of real estate investment strategies (such as buying and holding properties as rentals or fixing and selling them)
- A willingness to take chances
- Increased capacity for real estate investment knowledge acquisition
Limitations of REIT – Real Estate Investment Trust
Just like every business venture, there are two sides to a real estate investment trust. So before investing your hard-earned money into it, first of all, take a look at the limitations too.
1. Inflationary Trends
Publicly traded REITs are required to pay out 90% of their profits in dividends to shareholders. And also, they need to purchase additional properties to expand the portfolio, which is what drives appreciation and costs a lot of money.
Investing in private REITs is an option if you’re looking for a REIT investment strategy that includes both dividends and capital gains.
2. Taxed as if it were a regular source of income.
If you make long-term capital gains, you pay fewer taxes than if you make dividends. But dividends pay more taxes than long-term capital gains.
Because REITs typically pay out dividends rather than capital gains, investors may end up paying a higher tax rate than they would if they had invested in more appreciation-oriented assets.
3. High risk and fees
The fact that an investment is subject to SEC oversight does not automatically equate to lower levels of risk.
Before making a real estate investment, do your homework and take into account all of the market’s variables, such as property values and interest rates.
Include fees in your due diligence, as well. Management and transaction fees for some REITs are too high, resulting in lower returns for shareholders.
To find hidden fees in the fine print of the investment offer, you should be ready to use a magnifying glass to look for them.
With the above disadvantage of real estate investment trusts, do not get discouraged and back out. No venture is without its downside.
Frequently Asked Questions (FAQs)
Are there well-paying REIT jobs?
Yes, there are a lot of real estate investment trust jobs that pay well.
What are the requirements for becoming a real estate investor?
The requirement for becoming a real estate investor is simply an understanding of the market.
Should I invest in real estate or REITs?
Whichever you choose to invest in is dependent on you. There is only one reason REITs are better than real estate: REITs let you buy shares in the company, which means that any damage done to the real estate would be split between everyone who owns a share.
But with real estate, you would have to bear the cost alone.
What is the best paying job in real estate investment trusts?
The best paying REITS job is real estate brokerage. With this job, one can earn as high as six figures.
A career as a real estate broker is one of the most lucrative and well-paying jobs in the industry. On average, experienced brokers take home a six-figure income.