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Over the last few years and even more. But this year we've been seeing a lot of multi-billionaire investors either investing in or acquiring REITs (Real Estate Investment Trust). In this article, we will talk about the (REITs), including positions in asset management, acquisitions, development, and more. Discover the qualifications, responsibilities, and potential salaries for these top jobs in the booming REIT sector.
These Investments would include billionaire investor Warren Buffett, BlackRock Stephen Schwartzman and Brookfield CEO Bruce Flatt. These wealthy individuals have been buying heavily into these Investments.
Table of Contents
What Is a Real Estate Investment Trust?
REITs (Real Estate Investment Trust) is a type of company that invests in real estate on behalf of investors. So, for instance, people like you and me and thousands of others can put money in a REIT and in turn that REIT is going to buy real estate. And with that real estate it's going to get one rental income.
Why You Should Care
Now the reason that you should care is through a REIT you're able to invest in Real Estate. So even if you have a very small amount of money like say 20$ or 100$. Where you obviously wouldn't be able to pay for an apartment or a house you can still invest in Real Estate through this investment called REIT.
History of REIT (Real Estate Investment Trust)
It is started around the 1960s by U.S President Eisenhower and the idea was basically to give everyone accessible to real estate portfolios which at the time was only accessible to the rich people that had the money to buy real estate. Now it's more democratized through REITs.
Read More: about the history of REIT
How Large Reit Market Are
If you're wondering how big REIT are. They are actually fairly large. Nowadays, according to BlackRock out of the REITs that are listed on the stock exchange. They own approximately 2 trillion worth in assets which in terms of real estate that equates to around 520,000 properties and about 3 trillion assets in real estate.
Types of Reits (Real Estate Investment Trust)
- Equity
- Mortgage
Equity
Basically, it has everything to do with owning a property. So, a typical business model for them could be something like buying a property. Then leasing it out to as office space say to a company and then they would obviously get rent from the tenant. And that rent they would distribute to shareholders as dividends and that's the basic business model.
Business Model of Equity
- Buying property
- Lease space
- Collect rent
And that might be for commercial real estate like office space, shopping malls, hotels and residential real estate like say apartments, houses. They make money by renting out the property.
- Commercial
- Shopping malls
- Restaurants
- residential
- Apartments
- Houses
And another way that they make money which is more secondary is through the appreciation of the real estate right, if the real estate goes up in value over time.
Mortgage
Mortgage REIT don't actually own any real estate. Instead, they focus on the financing side of real estate.
Model of Mortgage
Finance real estate
- Mortgages
- Interest rates
- Mortgage-backed Securities
And other things like that's what they focus on. They make their money by earning interest on the investment.
But the Equity Reits is more popular.and much more widespread.
Is Real Estate Investment Trust a Good Career Path?
No doubt, there is potential for high earnings, diversification, growth, and flexibility. But there are also drawbacks to consider, including volatility, industry-specific risks, and time-intensive work.
What are the Benefits of a Career in REITs?
Potential for High Earnings
Real Estate Investment Trust (REITs) can be highly profitable, and those who work in this industry can earn substantial salaries and bonuses.
Diversification
This can provide diversification to an investment portfolio and reduce risk.
Growth Potential
As long as the economy is growing and the real estate market is stable, REITs can continue to generate strong returns.
Flexibility
Many companies in this field offer remote work options and flexible schedules.
What are the Drawbacks of a Career in REITs?
Volatility
Value can fluctuate based on changes in interest rates, economic conditions, and other factors.
Industry-Specific Risks
Like any industry, REITs come with their own set of risks.
Time-Intensive
Long hours and intense competition are common in this field.
Best Paying Jobs in Real Estate Investment Trusts
As the popularity of REITs continues to grow, there are a variety of jobs available in this industry. So, how many jobs are available in real estate investment trusts? The Answer to this question is here.
Chief Executive Officer (CEO)
The CEO is the highest-ranking executive officer in a REIT (Real Estate Investment Trust). CEO looks all over operations of the company, investment strategy, and leading the asset management team.
Salary
The average salary of a CEO is approximately $1 million/year.
Chief Financial Officer (CFO)
The CFO manages the financial operations of the REIT (Real Estate investment Trust). It includes financial analysis and planning, treasury and accounting operations. The CFO works closely with the CEO and the management team to design, plan and implement financial strategies.
Salary
The average salary of a CFO is approximately $400,000/year.
Chief Investment Officer (CIO)
The CIO manages the development and execution of the REIT's (Real Estate Investment Trust) investment planning. It includes identifying new investment opportunities and executing the portfolio of real estate assets. The CIO works closely with the CEO and the management team to ensure that the properties planning and investment objectives.
Salary
The average salary of a CIO is approximately $300,000 / year.
portfolio manager
All the properties which are owned by a REIT are managed by a portfolio manager. The manager is close with the acquisitions unit to find new properties that satisfy REIT's investment strategy. The portfolio manager is also close with the asset management team to ensure that the properties are being operated efficiently with their financial strategies.
salary
The average salary of a Real Estate Investment Analyst is approximately $200,000 / year.
Asset Manager
All the properties which are owned by a REIT are managed by an asset manager who is responsible for managing the day-to-day operations. The Asset Manager works closely with property managers to ensure that the properties are being managed efficiently with their financial strategies. The asset manager also works with the leasing team to ensure that the properties are being fully leased to generate the maximum amount possible.
salary
The average salary of a Real Estate Investment Analyst is approximately $150,000 / year.
Real Estate Investment Analyst
The Real Estate Investment Analyst researches, analyzing and monitoring all the operations of the company, which helps the company to make wise decisions and plans in buying new properties responsibly. The Analyst works closely with the portfolio manager and Assets Manager on the management team to ensure that the properties are performing well and investment objectives.
salary
The average salary of a Real Estate Investment Analyst is approximately $100,000 / year.
Corporate Accountant
The financial operations of the REIT properties are managed by a Corporate Accountant. Corporate accountants draw up financial data, analyze financial statements, and ensure that the REIT (Real Estate Investment Trust) is in compliance with all financial rules and regulations. The corporate accountant also works with the portfolio manager to ensure that the properties are generating the maximum amount possible.
Salary
The average salary of a Corporate Accountant is approximately $80,000 / year.
Investor Relations
The investor relations team manages communication with the analysts and investors. They look closely at the REIT's financial performance and investment strategy. To identify new investors and raise capital for new investments. The investor relations team also works with the acquisitions team.
Salary
The average salary of a Corporate Accountant is approximately $150,000 / year.
Property Manager
A single property which is owned by a REIT is managed by a property manager who is responsible for the day-to-day operations. The property manager ensures that it is fully leased and generates the maximum amount possible. The property manager handles everything with the help of a leasing team to identify new tenants and negotiate leases.
Salary
The average salary of a Property Manager is approximately $75,000 /year.
Leasing Manager
The leasing process for the REIT's properties is managed by the leasing manager. It includes advertising and marketing, tenant screening, and lease negotiations. The Leasing Manager works closely with the Property Manager and Asset Manager to ensure that the properties are fully leased and generates rental income.
Salary
The average salary of a Leasing Manager is approximately $75,000 / year.
Qualifications and Skills Required
- A bachelor's degree in real estate, finance, business, or a related field.
- Several years of experience in real estate or finance.
- Strong analytical and financial modeling skills.
- Excellent communication and interpersonal skills.
- Strong leadership and management skills.
- Familiarity with real estate industry software and tools, such as ARGUS, CoStar, and Yardi.
Conclusion
In conclusion, real estate investment trusts offer a variety of job opportunities in the real estate industry. Whether you are interested in acquisitions, asset management, property management, leasing, or finance, there is a job for you in a REIT. As the popularity of REITs continues to grow, the demand for talented professionals in this industry will continue to increase.
FAQs
What job in real estate makes the most money?
Executive-level positions such as CEO, CFO, and CIO are among the highest-paying jobs in real estate.
Can you make good money with REITs?
Yes, REITs offer potential for high returns and can be a lucrative way to invest in real estate.
What qualifications do you need to work in a REIT?
Qualifications vary depending on the specific job, but typically require a bachelor's or advanced degree in business, finance, or a related field.
What skills are important for a career in REITs?
Skills such as financial analysis, property management, and real estate law are important for careers in REITs, as well as strong communication and interpersonal skills.
How can I prepare for a career in REITs?
Education and experience in real estate, finance, or business can be beneficial, as well as networking and gaining relevant certifications and licenses.
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