Is Real Estate Investment Trusts a Good Career Path in 2024?

Last updated on August 11th, 2024 at 08:08 pm

There are numerous and endless opportunities today in the labour market for young professionals looking to advance their careers in their chosen fields.

And one of those opportunities lies in the real estate investment trusts sector.

But for a young professional, these numerous opportunities also bring some confusion as to which one to select and develop oneself; making the internet flooded with career-related questions such as:

• Is real estate investment trusts a good Career Path?

In this article, we are going to be looking at:

• what makes real estate investment trusts a good career path;
• The many job opportunities in the real estate investment industry;
• We are going to be considering some facts and statistics;
• Types of investment trusts;
• The benefits of real estate investment trusts;
• The requirements for managing a real estate investment trust;
• And finally, we look at the top companies with the number of employees in the real estate investment industry.

But first, let’s define what a real estate investment trust is…

What is a Real Estate Investment Trust?

Real estate investment trusts are instruments that allow a person to hold a portion of residential or commercial leases in their diversified portfolios. These are companies that own, operate or finance income-generating real estate.

Real estate investment trusts are companies’ funds or securities that allow people to hold an 

A real estate investment trust (REITs) is a company that owns, operates, and finances an income-producing real estate business (Some REITs engage in financing real estate).

The company allows people to invest in property. They usually have in their possession many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping centres, hotels and commercial forests.

In real estate investment trusts, the investors put their money into diverse projects such as hospitals, schools, warehouses, and hotels and the investment trusts companies receive tax concessions from the government, promising a better return for their investments.

Real Estate Facts and Statistics:

• 51% of buyers found their homes on the internet.
• Six million existing homes were sold in 2021.
• Millennials make up 37% of all home buyers.
• The average house price rose almost 5% in 2021.
• Sales of existing homes will fall 1.7% in 2022.
• The cost of renting has gone up by almost 18%.

What Are The Requirements For Managing a Real Estate Investment Trust?

The real estate investment trusts are open to big and small investors.

Anyone can invest and acquire ownership of real estate ventures – old or young.

But, there are rules and regulations that guide its operations and also ensure that investment funds offer a substantial income in return.

Below are a few rules you should know before deciding to take on a career in real estate investment trusts:

• The first of the rules is that every real estate investment trust must have at least 100 shareholders.
• Among these shareholders, none should hold more than 50% of the shares.
• A minimum of 90% of their taxable income must be paid as dividends to the shareholders.
• Also, at least 75% of their gross income must be obtained from real estate investments such as rents or sales. That is, where the company operates multiple and diversified ventures, 75% of the total income to the company must be from the real estate investment trusts.
• No less than 75% of their assets must be invested in real estate, cash, or treasuries.
• A board of directors or trustees must manage the organisation.
• Every real estate investment trust must comply with the tax laws of the country wherein they are located.

Types of Real Estate Investment Trusts

Let’s understand the various forms of real estate investment trusts before we proceed to answer your questions – Are real estate investment trusts a good career path?

It is important to know at this point that the real estate investment trusts income comes from the renting and the leasing of office spaces, warehouses, office spaces, hotels, and other properties.

This income is then distributed as dividends amongst the shareholders.

Let’s take a look at the different types of real estate investment trusts…

1. Retail Real Estate Investment Trusts

Retail real estate investment trusts own and manage retail properties in the commerce industry. They set up businesses like boutiques or grocery stores once the space is leased out.

This type of real estate investment trust is lucrative. They earn revenues from the rent they charge the tenants. And in the event that a tenant could not pay the rent due to poor sales, they simply look and bring a new tenant in.

2. Healthcare Real Estate Investment Trusts

Healthcare real investment trusts invest in healthcare facilities. They put their resources into properties such as surgery centres, assisted living centres, and hospitals.

Although such an investment is for the long-term, the growth is, however, dependent on the funding of healthcare and the occupancy rate of the facilities.

3. Residential Real Estate Investment Trusts

Residential real investment trust holds and operates housing properties.

They tend to focus on housing and do so in large urban areas where they can easily generate incomes with less financial and market risks.

3. Office Real Estate Investment Trusts

One of the highest income-generating real estate investment businesses in the office investment trusts.

These investments are made in the office property for small to medium companies where the tenants usually sign long-term leases. However, the return of these investments is directly proportional to the state of the economy, unemployment, and vacancy rates.

4. Mortgage Real Estate Investment Trusts

This type of investment trust is about lending money to real estate owners or buying existing mortgage-backed securities.

5. Hybrid Real Estate Investment Trusts

Hybrid real estate investment trusts are made both in properties and mortgages. 

A hybrid REIT is a real estate investment trust that is effectively a combination of equity REITs, which own properties, and mortgage REITs.

6. Publicly Traded Real Estate Investment Trusts

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

There are more than 200 publicly-traded REITs on the market, according to the National Association of Real Estate Investment Trusts (Nareit).

7. Public Non-Traded Real Estate Investment Trusts

These investment trusts also come under the purview of the SEC. A non-traded REIT is designed to reduce or eliminate tax while providing returns on real estate. A non-traded REIT does not trade on a securities exchange.

8. Private Real Estate Investment Trusts

These are only sold to institutional investors. Also, they are not traded on national securities exchanges, and the SEC does not monitor them. All real estate investment funds operate under the same rules regardless of their type.

Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Under private real estate investment trusts funds operate under the same rules regardless of their type.

Best Paying Jobs in Real Estate Investment Trusts

Let’s now talk about the jobs available in the real estate investment trusts Industry.

1. Property Managers

Investment and property managers are responsible for handling the day-to-day operations of individual properties.

The property manager is responsible for:

• Determining the rent price.
• Prepare vacant units.
• Advertise rental vacancies.
• Screen and approve tenants.
• Prepare and enforce a lease agreement.
• Handle tenant complaints and issues. 
• Collect and adjust the rent.
• Carry out property maintenance and repairs.

The base salary for a Property Manager ranges from $90,867 to $120,413 with the average base salary of $104,669.

2. Asset Manager

Asset managers’ responsibilities are to trade, manage, and invest assets such as capital, bonds, stocks, precious metals, commodities, and real estate on behalf of their clients. Asset managers also advise clients on the acquisition of assets and monitor, negotiate, and implement programs to increase asset value and revenue.

The average salary for an Asset Manager is $74879 per year.

3. Real Estate Agents

A real estate agent works as a middleman between the property owner (seller) and the person (buyer) looking to purchase the property.

Real Estate Agent responsibilities include:

• Providing guidance and assisting sellers and buyers in marketing
• purchasing property for the right price.

The average salary for a Real Estate Agent is $106227 per year in the United States according to Indeed.com.

4. Business Development Executive

A Business Development Executive typically has the following daily responsibilities:

• Attracting new clients by innovating and overseeing the sales process for the business. 
• Working with senior team members to identify and manage company risks that might prevent growth.

The average base salary of. Business development executive is $307,500 per year.

5. Acquirement team

The acquirement team are property acquisition team responsible for identifying and locating new investments opportunity in the real estate investment trusts.

Benefits of Real Estate Investment Trusts

The benefits of real estate investment trusts are:

• Liquidity: Real estate investment trusts’ shares are easily bought and sold in the market. And because of this, they do not tie up cash flow like the traditional real estate investment 
• Transparency: There is a high level of transparency in the real estate investment trusts. Funds listed in major stock operate under the same rules and regulations as other shares for reporting and regulatory purposes.
• Performance: As real estate properties, especially commercial ones, appreciate in the long term, these investment funds have typically proven to be good performers.
• Dividends: real estate investment trusts are usually a good source of stable income. About 90% of the profits usually come back to the investors.
• Diversification: Real estate investment trusts have a minimal correlation to other assets and usually outperform other investments regarding dividends.

Is Real Estate Investment Trusts a Good Career Path?

Absolutely yes. The real estate investment trusts, however, are not a get-rich-soon investment scheme.

A real estate investment trust is quite lucrative. It is a globally recognised industry and provides substantial career opportunities to individuals to earn huge money with little investment and return within a short time. 

The jobs listed above are well-paid and it’s worth giving a shot.

Below is a table containing the list of top companies, their locations, revenues and number of employees in the real estate investment industry.

Top Companies in the Real Estate Investment Industry

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