You’ve heard it said multiple times: Property is a good investment. And it’s for this reason, a career at a real estate investment trust (REIT) is considered such a lucrative pursuit.
Following a career in the real estate investment trust arena can be very rewarding. And if this industry is of interest to you, there are various areas within it you could choose to focus on.
Irrespective of your position in this field, you have the potential to earn a sizeable income. But deciding your career path is daunting and challenging, especially when you’re young, fresh out of college, and still inexperienced.
That’s why we’ve put together this article detailing the crucial points associated with a career at a real estate investment trust. We hope to simplify things by giving you an idea of what to expect on a day-to-day basis.
What is a Real Estate Investment Trust?
A real estate investment trust, or REIT, is a company operating in the property industry. The REIT owns buildings in the residential, commercial, and industrial property space. And it’s pretty common for the company to develop the buildings themselves.o
Real estate investment trusts are most often also responsible for managing the functioning of their buildings. This includes overseeing maintenance and other services related to the buildings and tenants.
That said, there are two different types of real estate investment trusts. And, while they both operate in the property investment industry, they make their money in different ways. But choosing a career path in either would reap similar benefits.
Equity REIT
An equity real estate investment trust is the more traditional of the two. Here investors essentially buy equity in the REIT. The money invested is used to develop and purchase properties that will generate an income for the company.
Investors benefit by owning shares in the real estate investment trust. They also receive dividends from properties the REIT has leased or sold.
Mortgage REIT
When it comes to a mortgage real estate investment trust, the company also receives funding from investors. But in this case, the invested funds are pooled and used to provide mortgages and loans. Investors receive a return on their investment through dividends received from the interest on the loans.
The Benefits of a Career Path in a Real Estate Investment Trust
Working for a real estate investment trust can be exciting and rewarding. And there are definitely a few benefits that you should be aware of. Next, we take a look at what the advantages are to pursuing a career in this sector.
Ever-Expanding Industry
The property industry always has and always will be profitable. It’s common knowledge that property is one of the safest, guaranteed investments you can make. And this industry continues to grow each and every year.
This makes following a career at a real estate investment trust a wise choice.
Room to Grow
Many real estate investment trust roles come with perks and benefits such as commission and profit shares. While there are a few tiers in each REIT department, as the company expands, so does your potential income.
As your portfolio increases, you’ll have the opportunity to challenge yourself. With this type of growth, you’ll take on more responsibility and staff who you’ll need to manage.
Various Career Paths
Many real estate investment trusts handle an array of operations related to property under one roof. And there are several facets to a full-service REIT. Which means there are several roles to choose from.
For instance, a real estate investment trust may handle everything from design and construction to managing, selling, and leasing. If so, there will be a department for each of the many functions involved. And each department will have its own team.
High-paying Salaries
There’s no doubt that the property is a lucrative industry to be involved in. Some of the wealthiest people in the world work in the property investment sector. And, as you might have guessed, your earning potential in a related field is very high.
Many Job Opportunities
Because of the high level of profitability in the property industry, there are quite a few real estate investment trusts. Most are substantial companies, with several subsidiary companies that each oversee different aspects of the business. This means there’s no shortage of companies looking for professionals to join their teams.
And, as I’m sure you’ve noticed, new property developments are going up daily. So, there’s never a lack of properties and projects to be involved in. If you want to find out more about jobs in real estate investment trusts we cover this here.
The Different Roles in a Real Estate Investment Trust
Property Developer
The developer plays a core role in the process and is at the heart of the industry. And it’s a position that comes with an immense amount of responsibility. When in the property developer role, you’ll oversee commercial and residential property development projects from start to finish.
Your job would involve dealing with architects, quantity surveyors, construction managers, and property managers, and more. You’ll be working closely with other executives and investors while also spending a fair amount of time on construction sites.
Asset Manager
As an asset manager, your primary duties would include taking care of investor and stakeholder property portfolios. You would be tasked with ensuring these properties operate and perform as gainful investments.
You’ll be responsible for advising executives and investors on which assets to purchase and sell in this role. And to be considered for an asset manager position, you’ll need to have a business degree with a major in finance.
Acquisition Analyst
Perhaps the idea of sourcing properties to invest in for profit is exciting to you. If so, a career as an acquisition analyst might be a good fit.
Acquisition analysts will deal with developers and building owners in search of lucrative properties to purchase. They’ll also regularly liaise with investors and stakeholders to advise them of investment opportunities on the horizon.
To become an acquisition analyst for a real estate investment trust, you’ll need specialist skills. This role usually requires a degree in business which includes financial analytics as a subject.
Property Manager
A property manager’s duties encompass overseeing the running and maintenance of properties within the company’s portfolio. These individuals will deal with tenants, service providers, and suppliers frequently.
You’ll also be responsible for enforcing any estate, complex, or building rules and policies. And, if working for a prominent developer or financial institution, you could have an extensive portfolio to manage. So, you must be an organized and efficient person.
Real Estate Agent or Broker
Probably the most recognizable career on this list is that of a real estate agent. The real estate agent’s job is to find buyers or lessees for the properties in the company’s portfolio. And they usually earn a commission based on their sales and rental agreements.
The real estate agent works closely with the property manager to ensure that the tenant’s needs are met. And if they have a broker’s license, which many do, they’re also able to act as brokers on behalf of the company.
Property Appraiser
The real estate agent or property manager may sometimes take on the role of an appraiser with the proper training. However, the larger real estate investment trusts have dedicated appraisers to carry out property valuations.
Property appraisers will carry out quarterly or bi-annual checks on the properties in the REITs portfolio. They’ll then value the property according to factors such as location, condition, market projections, etc.
These individuals work closely with asset managers to ensure that REIT-owned properties appreciate in value and are well maintained. They’ll also work with the acquisition analysts when they’re valuing properties for potential purchase.
Real Estate Attorney
As with any industry, specific legal aspects must be adhered to when dealing with properties. And, for this reason, many real estate investment trusts have an in-house legal representative on hand.
The real estate attorney will oversee and advise on all factors relating to property law. They’re responsible for ensuring that the real estate investment trust does not break the law when building or leasing properties.
Real estate attorneys also help the REIT deal with legal issues, lawsuits, or the like.
Conclusion
As you can see, following a career path in a real estate investment trust can be very beneficial. There’s incredible earning potential in the property industry, as well as tremendous growth opportunities.
You can explore a specific industry area, such as asset management, by focusing on it. However, moving laterally into other areas, such as property management or development, is not impossible.
There’ll be plenty of positions in REIT to pursue. And with the many job options at a real estate investment trust available to you, you’ll be spoilt for choice.
