Is Real Estate Investment Trusts a Good Career Path 2021 [Explained]

One of the intimidating things in life is making a career choice. As your life will be dependent on your job role, that’s why you might look for such options where there are plenty of opportunities and fewer drawbacks.

It can be a possibility that while searching for such career ideas, you have stumbled upon real estate investment trusts (REIT).

If you are wondering, “is real estate investment trusts a good career path?”. The answer is Yes.  REITs are a productive field that offers high-paying jobs according to the latest marketing trends. People who do not want to get into a business can build their careers in REITs. As per the REIT Economic Contributions report, commissioned by Nareit, in 2020 REITs provided nearly 2.9 million full-time equivalent jobs in the U.S. with $197 billion labor income. This reflects the future career growth with REITs.

Image Source: REIT.

You can get complete guidance about real estate investment trusts and the career opportunities associated with them by reading this article.

What are REIT or Real Estate Investments Trusts?

Real estate investments trusts are those companies that manage, own and operate income-generating real estate properties. These properties can be universities, schools, shopping malls or anything.

People generally buy shares of public REIs; the income from the share helps the companies to generate revenue.

If you are aware of share trading, you already know buying such public REIs gives you a percentage of the company’s revenue. So, this is actually a passive source of income for the shareholders.

The government of the US concentrates on real estate development because the economy of a country somehow depends on REITs.

So, you can assume from this that how important real estate investment trusts are.

Types of REITs

If you buy real estate stocks or invest your money in REITs, you are basically buying liquid assets. You can buy stocks of many properties and sell them in the real estate market later. There are mainly two types of REITs, Equity and Debt. Let’s take a look into them:

Equity Real Estate Investment Trust

You can invest in a company that owns properties. Since you are one of their stakeholders, you’ll get a share of profit from their rental income. In addition, you can be a developer for the company and you’ll not have to worry about selling or buying properties. REITs help you to manage these things.

Mortgage or Debt REITs

Here, you can invest in REITs that provide financial support to the properties. The REITs store a fund and once you buy a stock, they’ll use the money from the fund to loan the property owners. The interest that they’ll pay will get divided and you’ll get your share too. 

What are the Advantages of REITs?

1. You don’t need immense knowledge of real estate to invest in these.
2. Doesn’t need much capital.
3. You can easily sell your stocks or shares.
4. All the available properties are examined and trusted.
5. The system is very transparent and 90% of the profits are distributed among the shareholders.
6. You’ll get some tax advantages.

What are the Disadvantages of REITs?

1. All the stocks depend upon the economy. So there is always a risk.
2. You have to trust someone else to manage your properties.
3. You have to pay a management fee since someone else is looking after your property.   

What are the Different Career Options in REITs?

There are different types of jobs you can get in the REIT field; let’s check out what they are.

Property Managers

Property managers are the ones who handle every operation related to property dealings. Therefore, it is one of the best ways to make a strong client base in real estate and make more money. 

Moreover, you don’t have to make any investment in the real estate market. All you need to have is a high school diploma or equivalent degree and proficient knowledge and expertise in the logistics department.

Development Executive

Development executives are those who deal with the contractors and also finance the projects related to property development. They are considered the backbone of REITs. 

Dealing with contractors and subcontractors is definitely a field job that requires performing both managerial and non-managerial tasks. 

If you are interested in this job, you should have knowledge of land or sites and materials that are used in project development.

Asset Managers

If you are going to be an asset manager, all you need to do is take care of all the assets belonging to the investors who have hired you. Moreover, you will also be responsible for managing his/her portfolio assets by handling financial operations.

Generally, real estate agencies hire professionals to manage the company’s holdings. 

A job aspirant needs to have a finance or other business-related field degree in order to get a job as an asset manager. 

Acquirement Analysts

Being an acquirement analyst comes with many opportunities as well as more responsibilities. Therefore, only persons with special skills in finance such as Master of Business administration or accounting or similar can get this type of job.

The job role is to observe various development programs, analyze if the programs have a better future, and then ask willing investors to invest in those programs for more profits.

Frequently Asked Questions

Can real estate investing be a career?

Real estate agents, brokers and investors can earn a good amount of money; however, it will not be easy always. A person who wants to build his career in real estate investing needs to promote himself, track leads, handle complicated documentations, stay in touch with the customers to solve their queries and many more.

Is property investment a good career?

Yes, property investment is definitely a good career, although there are some risks associated with it. There will be some mistakes at the beginning like paying more for a property or making less profit, but once you become a pro at it, you can obviously earn a rewarding amount.

Can real estate investing be a full-time job?

Yes, real estate investing is a full-time job because it requires a lot of energy, strategy and technique to be successful in the field. You might be required to work for 40hours a week. 

What degree do you need to be a real estate investor?

You will need a minimum of a college degree in subjects like finance, economics, computer science, business administration, mathematics or statistics. To be honest, apart from an educational degree you will also require to have knowledge about the real market.

How many hours does a real estate investor work?

Normally,  a real estate investor needs to work for 40 hours weekly. Other than that, some jobs require efficient real estate investors to work from 9 am to 5 pm.

Conclusion

Now when you have a complete idea about real estate investment trusts, you can make an informed decision whether the job roles are suitable for you or not. Both the government and the investors are fond of REITs and that’s why there are more job opportunities for people who want to grow in this industry. So, all in all, real estate investment trusts are definitely a good career path, but you need to have proper knowledge of it.

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