REIT stands for Real Estate Investment Trusts. The real estate industry is booming, which is good news with the rise of Real Estate Investment Trusts. Anyone looking for a career opportunity with a REIT can enjoy the news that there are plenty of jobs available.
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What is a real estate investment trust?
Over 225 Real Estate Investment Trusts with a total market value of $1 trillion operate in the US. A publicly listed investment vehicle is a real estate investment trust (REIT). Investors can also purchase Real Estate Investment Trusts ETFs to diversify their investments across many real estate asset classes.
Real Estate Investment Trusts own and operate revenue-generating real estate and related revenue-generating assets. REITs may also own buildings, including offices, hotels, and resorts. However, real estate purchased by Real Estate Investment Trusts is not subject to future resale. Instead, the property held by Real Estate Investment Trusts is intended for development. Then the property is used as part of the investment portfolio to generate income.
These assets can be swiftly and cheaply bought and sold by investors. Compared to conventional real estate investments, real estate investment trusts have substantially superior liquidity. NASDAQ, the US Stock Exchange, and the New York Stock Exchange list real estate investment trusts. Investors might also gain indirect access to REITs through mutual funds.
Investing in a Real Estate Investment Trust allows a group of investors to make real estate investments at a scale that would otherwise be impossible. Small real estate investors can invest in Real Estate Investment Trusts to access larger real estate investments.
As the Real Estate Investment Trusts sector grows and diversifies, analysts expect more jobs to be created in the industry.
How do real-estate investment trusts work?
In 1960, Congress formed the Real Estate Investment Trusts. The goal was to provide everyone with a profitable opportunity by investing in income-generating real estate. Investing in Real Estate Investment Trusts is certainly no different than investing in any other industry. Investors buy shares, and shareholders pay most of their profits to shareholders in Real Estate Investment Trusts.
When Congress first created Real Estate Investment Trusts, there were rules that Real Estate Investment Trusts had to follow. All Real Estate Investment Trusts must be similar to mutual funds, are treated as a corporation under the Internal Revenue Code, and are broadly owned by shareholders.
In addition, REITs must own or primarily own real estate with a long-term investment horizon.
Under state tax law, more than 75% of a company’s income comes from renting real estate, interest on real estate, or selling real estate. A company must have at least 75% of its assets in real estate, and 95% of its income must be passive.
Are Real Estate Investment Trusts a Good Investment?
Those who want to diversify their investment portfolio without increasing the risk too much should consider investing in Real Estate Investment Trusts. There are still some risks because investing is not perfect, but there are benefits to increasing your wealth by investing in a real estate investment fund.
The way Real Estate Investment Trusts operate means that they do not pay corporate tax. Dividends are often subject to double taxation at the corporate and personal levels. It’s helpful to know that REITs are not subject to corporate taxes. That said, there are significant tax advantages.
Real Estate Investment Trusts must pay shareholders 90% of their taxable income. Many REITs often have dividend yields greater than 5%, but the average stock yields returns of less than 2%. Investing in Real Estate Investment Trusts is, therefore, ideal for those looking for more than just an income to reinvest.
Property values tend to continue to increase over time. As a result, many Real Estate Investment Trusts can sell their valuable assets and capitalize on their capital elsewhere. Many Real Estate Investment Trusts offer returns that far exceed the market through these strategies.
Real Estate Investment Trusts are ideal for retail investors.
Smaller real estate investors can invest in a commercial real estate portfolio that would otherwise be inaccessible. Most people cannot afford to own an office tower or a mall. Thanks to the creation of Real Estate Investment Trusts by Congress, anyone can now invest in these types of buildings and enjoy a return.
A solid financial plan means a diversified investment portfolio. Real Estate Investment Trusts work like a stock market investment, but they’re not stocks; they’re real estate. Investment advisors recommend owning real estate in an investment portfolio because real estate tends to retain its value even during times of economic crisis. Investing in Real Estate Investment Trusts often means earning a steady income.
If you own a property, it may take some time to sell. However, you can easily buy and sell Real Estate Investment Trustsinvestments with the click of a button. This level of liquidity makes the Real Estate Investment Trusts an attractive proposition.
Real Estate Investment Trusts employment statistics
According to the US Department of Labor, the need for real estate managers, real estate agents, and sales agents continues to grow. In 2022, the median salary in real estate was $51,220 per year, and hundreds of thousands of people work in the United States.
Average salaries in the Real Estate Investment Trusts industry are well above those of real estate agents. The average Real Estate Investment Trusts (REIT) analyst makes $108,164 per year as of September 2022, more than double that of real estate agents and sales representatives. However, salaries generally range from $76,495 to $145,071.
The REIT has 274,000 full-time employees. An estimated 2.6 million full-time jobs are created indirectly by real estate investment trusts. The good news for anyone considering a career at a REIT is that growth is happening. This means many more jobs and opportunities to earn much higher wages than in other parts of the real estate industry.
The various employment categories that Real Estate Investment Trusts offer
A wide variety of careers are available in the real estate investment trust (REIT) sector. To better understand this, here are the job descriptions of leadership roles.
Role of development
Development is responsible for the creation of new projects. Working in this role is ideal for anyone looking for project management tasks. In addition to developing new projects, this role includes working with others to fund development.
Growth jobs in the Real Estate Investment Trusts industry are in high demand because they are well-paid, challenging, and respected.
Acquisition role
The acquisition work within real estate funds includes the search for new investment opportunities. And these roles close the deal. These roles are also in Real Estate Investment Trusts, and the salaries are high. The job is financially related and suitable for anyone with a degree or background in finance, marketing, economics, or capital markets.
Investment Management Roles
The property manager is responsible for overseeing the operation of the property, including leasing, maintenance, collection, and everything else as needed.
There is no minimum requirement to become a property manager. The ideal candidate is someone who can handle a wide variety of situations and has good project management skills.
Starting as an asset manager at a REIT is often a great opportunity. In fact, being able to use other roles within your organization offers great career advancement opportunities.
Investment Management
Wealth management is a function related to the operational and financial position of a Real Estate Investment Trusts portfolio. Asset managers are responsible for managing client assets in accordance with agreed investment goals and preferences. Wealth managers develop, organize and maintain client portfolios.
A good fund manager should be able to work with a variety of other teams. Asset managers collaborate with acquisitions, accounting, development, and finance to get results. W
e also need to ensure compliance with SEC, Real Estate Investment Trusts, and Sarbanes-Oxley regulations. It is not uncommon to work in acquisitions or property management and become a residential or commercial property manager. Alternatively, anyone with the relevant skills should be able to secure a position in wealth management immediately.
The role of investor relations
Investor Relations is responsible for coordinating and managing all communications with Real Estate Investment Trusts shareholders. This role pays well and is ideal for anyone with a financial or accounting background.
The investor role team organizes annual meetings and meeting materials, including annual reports and proxy statements. And all this should be done as per the rules of the Supreme Education Council. Candidates with an Accounting or Finance background are suitable candidates for this post.
How many new jobs are there in real estate investment trusts?
If you’re wondering how many jobs are there now, there are over 1,278 jobs in real estate mutual funds as of September 8, 2022, according to LinkedIn data. It’s just a site and a great indicator that there are a lot of opportunities in the field.
The REIT sector is a fast-growing sector. In addition to needing investors, there are many other supporting roles that need to be filled on a regular basis.
Conclusion
The real estate investment trust industry is already big and growing. Working at a real estate investment trust means following strict reporting and regulatory protocols. Many REIT jobs require the candidate to have a background in accounting or finance.
However, there are other roles available that are not subject to these restrictions. Once you’ve worked in a real estate investment trust, it’s possible to move into other roles as one becomes available.
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