How Many Jobs are Available in Real Estate Investment Trust?(REITs) has drawn so many investors who seek income and this has served as a viable option for investment. In this article, we will be discussing what REITs are, what are the best paying jobs in REITs? Let’s explore REITs further by delving deeper into this topic.
Real Estate Investment Trust, What is it?
An investment structure that facilitates the purchase and management of real estate that generates income, and this is done on behalf of investors is known as Real Estate Investment Trusts (REITs). REITs pool the resources of multiple investors and make and at the same time makes it possible to use funds effectively and efficiently in purchasing large scale real estate, which thereby leads to enabling access to investment in real estate.
REITs are subject to the same traditional purchasing and selling method and they are also comparable to stocks, trading on stock exchanges. Investing in REITs comes with a significant advantage and this is because it offers dividends to their investors and this is appealing to investors who are seeking dividends for their investment. The IRS requires that REITs distribute at least 90% of their taxable profits as dividends. In addition, REITs are not required to pay corporate income taxes, which comes as an added advantage. As it is with most publicly traded stock, the REITs are regulated by SEC.
When invested assets generate income, these profits are shared among the investors. Through shopping malls, apartment buildings, industrial buildings, and office buildings, investments are diversified.
When a share of a REIT is purchased by an investor, the investor does not have to fully manage or maintain its properties. Maintenance and management of the property is left to experienced asset managers. As a form of reward for their time and expertise in operating the properties effectively, a portion of the profits generated from the trust holding is given to them.
The benefits of working with Real Estate Investment Trusts
To get into the real estate business, investment in Real Estate Investment Trust can be a great way without even having to personally manage or own physical properties.
There are several key benefits when working with REITs which includes diversified investments cutting across multiple types of real estate, opportunities to benefit from equity market appreciation on portions of the portfolio as well as access to deep expertise on a range of property issues.
In addition, investors are offered added liquidity and easier dividend distributions when compared to direct investments in physical real estate by REITs. If you intend to get into the profitable world of real estate investment without taking much work or risks, working with REITs is worth looking into.
Best Jobs in Real Estate Investment Trust
Jobs in the Real Estate Investment Industry involves acquisition, management, and real estate properties ownership. The roles in this sector include:
The job of the REIT analyst is to evaluate potential investments in real estate and as well recommend investments based on their research and analysis. In analyzing the financial stability and value of properties in a job, the REIT analyst plays an integral role in REITs. REITs analysis involves creating financial statements and financial projections, market research, evaluating income generation potential, and creating property valuations.
Among other responsibilities of the REITs includes lending support for loan closings and working with the servicing division. Duties can vary depending on who your employer is; however, a general part of the job of a REITs analysts includes creating investment reports that cover every necessary detail from property maps to borrower data. Comprehensive insight into all related topics is essential because these documents must meet both company and investor standards. The average salary of an REITs Analyst is $85,000.
The Portfolio Manager oversee a portfolio of real estate investments and make decisions regarding acquisitions, dispositions, and capital allocations. A REIT portfolio manager is responsible for managing a portfolio of real estate investments. In addition, they must assess current market conditions in order to identify potential investment opportunities and research those investments in order to make informed decisions. The portfolio manager must also oversee the operations of any real estate property owned by their clients, including tenant relations, budgeting, and financial oversight. Average Salary – $144,000.
Property Managers/Asset Managers
The responsibility of overseeing the operations of a real estate property which includes tenant relations, budgeting, and financial oversight lies with the property manager/asset manager. Managing and monitoring of assets owned by a Real Estate Investment Trust is also part of the responsibility of a Property Manager/Asset Manager. They are also responsible for seeing to the day to day operations which includes tenant relations and rental collections, as well as maintaining accurate records making sure that accurate records of REITs assets are maintained. Conducting of market research is a duty of an asset manager, and this market research is done to identify opportunities that will improve asset performance, negotiate lease agreements, and prepare budgets. In addition, it’s necessary for a synergy with other departments and stakeholders to optimize asset performance and ensure compliance with regulation and this is one of the jobs of the property manager/asset manager. The average salary of an asset manager is $76,000.
The responsibility of an investment banker is basically to advice clients who are looking to invest in the REIT sector. Real Estate Investment Trusts raise capital and navigate complex transactions, and the Investment Manager is saddled with the responsibility in helping clients in raising capital for the investment. They are also responsible for analyzing and researching financial markets, providing guidance to REITs on the best way to structure investments, mergers, debt offerings and acquisitions. The legal and regulatory environment of potential strategic moves must be accessed by the investment banker to ensure compliance with applicable laws. Conclusively, in order to source new capital for clients, REIT investment bankers must also be adept at developing relationships with potential investors. The average salary for a REITs investment banker is $177,000.
The job of an Acquisition Analyst is to perform due diligence on potential real estate acquisition and this could include reviewing financial statements, analyzing market data and also visiting the site. The importance of this is to identify risks and opportunities in order to make recommendations to decision-makers. The average salary of an Acquisition Analyst is $63,000.
REIT Investor Relations Manager
They are responsible for the communication between shareholders and potential investors. This responsibility includes provision of information about the REIT, organizing investors meetings, and issuing press releases. The sole aim of all this is to promote the REIT in a positive light and increase investment. The average salary of a REIT investor Relations Manager is $93,000.
Many investors have been drawn to Real Estate Investment Trust and because of the potentials there in REITs, it has served as a viable option for investment. There are a couple of jobs in the REITs and they are high paying jobs. This jobs include REITs analyst, Portfolio manager, Property managers/asset managers, investment bankers, acquisition analyst etc.