REIT stands for Real Estate Investment Trust. Real estate being a huge industry, there is good news for real estate investment trusts as they are booming.
This is a huge opportunity for people looking to make a career with REITs as there are so many jobs available. How Many Jobs Are Available in Real Estate Investment Trusts? What Types of Roles Are Available in the REIT Industry?
This article will tell you how many jobs are available in real estate, how these real estate investment trusts work, and much more.
What are Real Estate Investment Trusts
There are more than 225 REITs in the US alone with a combined market capitalization of more than $1 trillion. A real estate investment trust (REIT) is a public investment vehicle listed on a stock exchange. In addition, investors can also buy REIT ETFs to spread their investments across multiple real estate asset classes.
REITs can own buildings, including resorts, offices, hotels, and more. However, real estate purchased by REITs is not for future resale. Instead, the property owned by the REIT is for development. Then, the assets are used as part of an investment portfolio to generate income.
Investors can buy and sell these properties at low prices. REITs have better liquidity than traditional real estate investments. Listing for REITs are on the New York Stock Exchange, the American Stock Exchange, and the NASDAQ. In addition, investors can get indirect access to REITs through mutual funds.
Analysts predict that as the REIT sector grows and diversifies, many more jobs will be available in the industry.
How do real estate investment trusts work?
In 1960, Congress created real estate investment trusts. Its focus was to give everyone a chance to profit from investing in income-producing real estate. Investing in a REIT is like investing in any other industry. Investors buy stock, and shareholders pay real estate investment trust shareholders.
When Congress first created REITs, there were some rules that REITs had to follow. All REITs must be modeled after mutual funds, treated as a corporation by the Internal Revenue Code, and widely held by shareholders.
Are REITs a Good Investment?
One who wants to diversify his investment portfolio without risk, should consider investing in REITs. There is still some risk because no investment is perfect, but there are some benefits to growing wealth by investing in a real estate investment trust.
The role of a REIT means that it does not pay corporate tax. Dividend prices often face double taxation: at the corporate and individual level. The good news is that REITs are not taxed at the corporate level, which means they enjoy significant tax benefits.
REITs must pay out 90% of taxable income to shareholders. Most REITs typically have a dividend yield of more than 5%, but the average stock yield is less than 2%. This makes investing in REITs ideal for those looking for more income or investments.
Home values increase over time. As a result, many REITs can raise funds by selling valuable assets and using capital elsewhere. Many REITs offer above market returns in these strategies.
REITs are ideal for small investors
Small business owners can invest in a real estate portfolio that would otherwise be unavailable. Not many people can afford office towers or shops. Thanks to the creation of REITs by Congress, anyone can now invest in these types of properties and enjoy the returns they generate.
Good financial planning means having a diversified investment portfolio. REITs operate in much the same way as investing in the stock market, but instead of stocks, they are real estate. Investment advisors recommend owning real estate and investment properties, as real estate retains its value even during economic downturns. Investing in REITs usually means having a steady income.
If a person has real estate, it can take time to sell it. However, REIT investments are easy to buy or sell with the click of a button. Having this level of liquidity makes REITs an attractive proposition.
Real Estate Industry Job Statistics
According to the United States Department of Labor, the need for real estate agents, real estate agents and salespeople continues to grow. In 2022, the median salary in the real estate industry is $51,220 per year, which employs hundreds of thousands of people across the United States.
In the REIT sector, the average salary is higher than that of real estate agents. The average real estate investment trust (REIT) earns $108,164 per year as of October 2022, more than twice the number of real estate agents and brokers. However, the salary usually ranges between $76,495 and $145,071.
There are 274,000 full-time REIT employees. About 2.6 million full-time jobs are indirectly created by housing investment trusts.
The good news for anyone looking for a job in a REIT is that growth is on the way. This means more job opportunities and the potential to earn a higher salary than other sectors of the real estate industry.
Types of Jobs Available in Real Estate Investment Trusts
There are many different jobs available in real estate investment trusts (REITs). In order to understand it better, here is the working description of the main function.
1. Development Roles
Innovation is about creating new jobs. Working in this job is good for any person who is looking for job in management. In addition to building new projects, this project involves working with others to finance development.
Growth jobs are highly sought after in the REIT industry as they are well paid, challenging and highly respected.
2. Acquisition Roles
Exploring new investment opportunities includes acquisition services and real estate investment trusts. And these services ensure that business gets done. In addition, these services are available at REITs and are well paid. This job is closely related to finance and is suitable for anyone with a degree or background in finance, marketing, sales or capital.
3. Property Management Roles
Property managers are responsible for overseeing the operation of the building – rent, maintenance, collection and anything else that is necessary.
There are no minimum requirements to become a property manager. Successful candidates are those who can handle various situations and have good project management skills.
Getting started as a property manager in a REIT is always a great opportunity. In fact, when there are other jobs in the organization, there are good chances of career advancement.
4. Asset Management Roles
Cash administration is talking about the health and healthcare of the actual portfolio of the household. The useful manager will be used by the customer resources for the purpose of investment and essential goods. Disables the customer to grow, organize and manage.
Authorized Control will be able to work with many other groups. Availability, development and reset and certification of principles to achieve all results. In addition, they must rest in the dry, rebuilding reggae at Sarbanes-Oxley.
It is not uncommon to receive or begin working at a manager, and the residence or occupation must be the principal of the bank. On the other hand, whoever has the skills, a responsible manager should be responsible.
5. Investor Relations Roles
Investor Relations is responsible for coordinating and managing all information with REIT owners. This job pays well and is good for anyone who has money or an account.
The Investor Group will prepare the annual meeting and meeting materials, including the annual report and proxy statement. All of these must be done in accordance with SEC regulations.
Anyone with a background in accounting or finance would be an ideal applicant for this position.