How do REITs work?
REITs are mostly formed by real estate companies who act as sponsors for the REIT when it is created. The sponsor is like the majority shareholders or promoter of the newly formed company or trust. Then the sponsor appoints the trustee responsible for holding the trust’s real estate assets so that he doesn’t have any direct control over assets. Now, the trustee appoints a manager who is responsible for managing the assets and making the investment decision for the trust. Now, the REIT can be floated in the market to attract retail shareholders who act as unit holders of the trust. REITs mostly earn rental income from working properties and capital appreciation for the sake of assets. Furthermore, REITs only invest in assets that can provide them with maximum profit. Commercial assets include resorts, shopping malls, offices, warehouses, hotels, etc.
24 Best Paying Jobs in Real Estate Investment Trusts
REITs were first founded by The United States of America (USA) in 1960 to create an asset that would provide an everyday investor with the opportunity to invest in large scale, diversified portfolio of income-producing real estate in the same way they invest in other asset classes-tradable and liquid securities. After learning about REITs, let us start our list.
1. Real Estate Investment Trusts Investor
The work of the real estate investment trusts is to purchase real estate assets, add value to them, and then resell them at a profit. It is important to know when and where to buy a property and when and where you can sell them. This means that you should conduct market research every day.
2. Property Development
Property Development is the employees whose task is to find the real estate property and plan the development and the use of that land. They must have good knowledge of working with contracts, project management, economic trends, and much more. Thus, depending upon the REITs, this is one of the highest paying jobs in real estate investment trusts, with salaries in six figures.
3. Real Estate Attorney
An Attorney is responsible for reviewing important documents related to real estate transactions like lenders, landlords, and equity investors. He also deals with the guiding manager about rules and regulations, representing the company in legal meetings, protecting the company against legal risk, drafting and reviewing reports, and many more. They are responsible for making all the parties clear about the terms and obligations of the firm. An Attorney specializing in real estate and contract laws will help create legal and important documents for any kind of land you invest in. The standard salary for these jobs ranges between 115k to 185k.
4. Senior Director
A real estate investment trust’s senior director is a managerial position that oversees a large portion of the company than a director. He manages funds and busy real estate assets, adds value to the property, and applies different strategies to get higher income. The senior director can earn between $25000-$121,100 depending upon his experience and company. This job is among the best paying jobs in real estate investment trusts.
5. Asset Manager
Asset Managers manage a specific portion of assets. Asset managers are responsible for overseeing hundreds of properties at a time. Their main focus is on managing their portfolio while strategizing how to improve the performance of REITs. The highest paying jobs in real estate investment trusts salary for asset managers tend to be around $150k on the low end and up to $250k on the high end depending upon their expectations.
6. Portfolio Manager
A portfolio Manager in REITs is a professional who combines expertise in real estate and finance and is in charge of directly communicating with the people responsible for dealing with everyday operations. REITs Portfolio Manager is very similar to the Asset Manager. However, most portfolio managers make 125k per year on the low end and up to 225k per year on the high end. Also Read: Is Real Estate Investment Trusts a Good Career Path?
7. Acquisition Specialist
An acquisition specialist is responsible for finding real estate deals and bringing them to the portfolio manager and asset manager for review. This is a very unique position and well suited for individuals who are good with people and must have good communication skills to deal with the client. Acquisition Specialists may earn up to $100k to $300k per year depending on experience and the company in which they work.
8. Real Estate Property Appraisers
Property appraisers play a crucial part in real estate transactions, especially when financing is involved. They need to prepare the true value of a business, equipment, and other asset classes. The lender relies on the property appraiser’s report to understand the value of their collateral, which also helps educate them on how high their loan amount should be. Insurance companies also rely on property appraisers to determine the proper amount of insurance coverage and premium. Property appraisers can earn a salary between 65k-100k. Depending on their work experiences, they can set their rate and earn more.
9. Tax Specialist
Real estate investment trusts tax specialists have well-rounded knowledge and understanding of the real estate tax code. Tax specialists consult the Portfolio Manager regarding how they can save money on taxes. A tax specialist can earn up to 75k-125k on the high end.
10. Real Estate Investment Trust Accountant
A real estate investment trust accountant supervises the company’s daily activities by tracking its financial status. Their main duty is performing all the accounting operations, including budgeting, cash forecasting, debt activities, and completing annual audits. An accountant can earn a salary between 75k-125k depending upon their experience which makes it one of the best paying jobs in real estate investment trusts.
11. Real Estate Investment Trusts Analyst
Real estate investment trust analysts assist the financial department. The main job of the analyst is to carry out dynamic research, evaluate commercial properties, supervise huge workloads, suggest profitable investment opportunities, etc. Some agent deals with residential properties; these are classified on the bases of location and size, while some deal only with commercial properties classified as retail malls, resorts, workspace, café, etc. An analyst can earn between 80k-125k based on experience and the company.
12. Real Estate Investment Trusts Agent
The real estate investment trusts agent is a mediator between buyer and seller in real estate transactions. An Agent’s main work is to provide guidance with the sale, develop a network, update the list of available properties, and analyze the client’s requirements and financial budget. An agent must have good communication and negotiation skills. They can make 60k-500k per year. Also Read: 15 Best Paying Jobs in Electric Utilities Central
13. Compliance Officer
The real estate investment trusts compliance officer is responsible for regulatory and legal requirements as well as must ensure internal policies and bylaws. The compliance officer must develop an effective compliance program, create internal controls and monitor them, educate and train employees about the risks and the company goals, draft and receive company policy, etc. The compliance officer can earn a salary between $66k-$157k depending on company and experience.
14. Real Estate Investment Trusts Broker
A real estate investment trusts broker is a licensed-based profession that holds the expertise that can help in real estate transactions; a broker can also suggest selling and buying the property. He has to supervise real estate agents, and collaborate with attorneys, stakes, contractors, etc. A broker can earn between $100k-$145k including commission. Now you know why this job is on the list of best paying jobs in real estate investment trusts.
15. Drafter
A real estate investment trusts drafter is an engineering technician who creates plans and detailed drawings for a building, infrastructure, etc. His main duty is to create a design, finalize the design, inspect the material required, getting the draft sanctioned by clients or higher authorities. Drafter can earn between $36,500-$83,500.
16. Leasing Consultants
A real estate investment trusts leasing consultant is a person who handles all talent-facing aspects of renting a property on behalf of a building management company or property owner. His job is to complete agreements, identify opportunities, negotiate leasing team, keeping track of property status. The leasing consultant’s pay scale is about $28,789-$35,347.
17. Investor Relation Officer
The real estate investment trusts investor relation officer is responsible for creating and presenting a consistently applied investment message to the investment company. His main duty is to analyze financial models, maintain proper investor relations, create press releases and presentations, train company spokespersons, etc. An investor relations officer must have good communication skills and confidence in self-decision. An investor relation officer can earn a salary between $112,905-$159,408 depending upon experience and company.
18. Service Associate
The real estate investment trusts service associate is responsible for solving the customer’s inquiries and communicating and maintaining a positive attitude with customers. Service associate is the company’s face and voice as they are the most respectful and polite listener who works with customers and fulfil their utmost needs. Their pay scale is about $31,559-$40,557. Also Read: The 15 Highest Paying Railroad Jobs
19. Administrative Assistant
The real estate investment trusts administrative assistant is responsible for planning meetings, booking travel arrangements, arranging and scheduling appointments, answering and forwarding phone calls, etc. They can earn a salary between $38,164-$48,196.
20. Marketing Manager
The real estate investment trust marketing manager is responsible for planning market strategies, approving marketing materials, developing market campaigns, and analyzing social media trends and metrics. The marketing manager should be creative. He can earn a salary between $95,796-$129,567.
21. Human Resources Manager
A real estate investment trust’s human resource manager is a person who handles the recruitment and selection process, maintains payment records, organizes training programs, evaluates individuals’ performance, etc. Human resources managers can earn between $76k-$228k.
22. Supervisor
The real estate investment trusts supervisor oversees employees, analyses expectations, identifies areas for improvement, sets objectives, and organizes and maintains tasks. The supervisor can earn between $28,905-$111,597. This job is definitely one of the best paying jobs in real estate investment trusts
23. Survey Researchers
A real estate investment trust survey researcher is a person who designs a survey and conducts research by choosing the appropriate survey method and then summarizes collected data in the form of graphs and charts. Survey research scale pay is about $44,976-$81,787.
24. Transaction Analysts
Real estate investment trusts transaction analysts are responsible for preparing client reports, analyzing financial reports, collaborating with the team to meet all key performance measures, and participating in brainstorming to improve knowledge and communication. Transaction analysts can earn between $90,000-$110,000.
Different Types of Real Estate Investment Trusts
There are many types of REITs which operate in different sectors and businesses. Some of them are mentioned below.
Debt Real Estate Investment: These are the companies that lend money to people who wish to purchase real estate. It is almost similar to lending companies as the buyer or the purchaser receives a loan in exchange for payment of the interest on loans. Equitability Real Estate Investment Trusts: These are industries like apartments, residential real estate, stores, markets, resorts, etc. These REITs are in charge of monitoring, establishing, and building the hub after the plan’s approval. Medical Real Estate Investment Trusts: Medical REITs operate research facilities, multi-speciality clinics, health care buildings, and many more. As it is highly in demand and sought after, it’s difficult to imagine the one failing. As the demand for hospitals is increasing, special testing, laboratories, and nursing facilities are in high demand. Their investment in this field will pay off and boost your company’s growth. Merchandise Real Estate Investment Trusts: Department stores, shopping malls, supermarkets, retail shops, and many more are examples of investments in merchandise. However, merchandise REITs are not responsible for managing and generating these. Instead, they will provide buyer’s loans and receive earnings from the market proprietors and retail stores. Domestic Real Estate Investment Trusts: The REITs will start with the construction of buildings, flats, houses, massive-scale community complexes, and other infrastructures. Companies that deal in land and property will not be affected by the economic decline in any sector. Thus, it is a fantastic career option because the industry is managed by trusts that invest in real estate.
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Rules and Regulations of REITs
Here are some of the rules and regulations of REITs:
Net Asset Value must get be updated every financial year. At least $70 to $100 of the company must be an asset base. For real estate under-construction properties total investment must be only 10%. The company must make an investment of about 80% in properties capable of generating revenues. Income of about 90% must be distributed to the investors in dividends.
Types of REITs based on Ownership
There are many different types of REITs depending on the type of real estate that they are investing in. The most prominent are as follows.
Office REITs owning office space Retail REITs owning warehouses and other industries’ space Resort REITs owning hotels and resorts Residential REITs owning houses and apartments Mortgage REITs owning mortgages Diversified REITs owning different types of properties Retail REITs owning shopping malls and stores Healthcare REITs owning hospitals and nursing homes
Advantages of REITs
Here are some reasons why REITs are getting popular.
REITs provide the enormous investment benefits that the real estate class has without massive upfront capital requirements. It provides good diversification benefits to small shareholders who cannot afford to own different types of properties. REITs help address the big issues of the real estate class, which are illiquidity and the time taken to complete transactions. REITs manage all their properties professionally to ensure minimal hassle for the actual asset owner. REITs also provide the necessary capital appreciation which is the biggest draw for real estate investments.
Disadvantages of REITs
Here are some drawbacks of REITs.
Although REITs have tax benefits for the entity itself, there are no specific tax advantages for the investors of the REITs. Thus, all the income from the REITs is taxable. The rate of capital appreciation for REITs is slower than normal real estate companies. It is subjects to market risks in the real estate segment and provides limited diversification benefits that can counter these industry risks.
Top REITs in India
REITs in India were approved in 2014, which is still a new concept. Thus, the REITs space has very limited options. There are only 3 listed entities.
Embassy Office Parks
It is the first REIT to be listed in India. The trust owns around 42.4 million sq. feet of real estate.
It has an occupancy rate of 88.5%, with more than 193 blue-chip occupiers, including companies like Google, Flipkart, Cognizant, etc. The company has a weighted average lease expiry of 6.9 years. It has a NAV of Rs 388 per share. It mostly owns office space with a few hotel spaces and a solar park to provide power to the office spaces. The trust has properties in Bengaluru, Mumbai, Pune, and Delhi NCR.
Mindspace Business Park
The K Raheja Group sponsors mind space REITs. It has a total leasable area of 31.2 million sq feet, of which 23.8 million sq feet are completed.
Brookfield India
Brookfield AMC sponsors Brookfield India Real Estate Trust. It is one of the world’s largest alternative asset managers, with more than $650 billion of assets.
It has a 14 million sq feet portfolio with rights to acquire 8.2 million sq feet. It has an occupancy rate of 87% with 188 tenants, including Accenture, TSC, and Cognizant. The trust has a weighted average lease expiry of 7 years and NAV of Rs317 per share. It mostly owns office spaces. The trust has properties in Gurugram, Mumbai, Kolkata, and Noida.
We hope you enjoyed our list of best paying jobs in real estate investment trusts. Real Estate Investment Trusts is a viable employment option. If you are interested in finance and real estate, this is a good career path for you. Before applying for courses like accounting in real estate, consider earning a degree in corporate finance. This way, you will have a fundamental understanding of the market before entering this sector. Also Read: 21 Best Paying Jobs in Basic Industries Q1. Is a job in Real Estate Investment Trusts a wise choice? Ans. Working in REITs takes a strong commitment to finance and real estate. This way, you may get a significant return on investment. If you are interested in finance and real estate, this is an excellent career path for you. You will gain experience in diversity, which will benefit your resume. Q2. What are the benefits of REITs? Ans. Working for a REIT can be advantageous in various ways. Most significantly, REITs are transparent and provide enough liquidity choices for all investors. It would broaden your professional opportunities and give you access to the real estate industry’s genuine performance capacity. Q3. How much money can you make working for a REIT? Ans. A property manager can make between $45,000 and $59,000 yearly. Furthermore, as an expert development executive, you can make $100,000. REIT asset managers can earn more than $49,000 annually, while acquisition analysts can earn $69,000. As a result, you have the potential to make between $45,000 and $100,000 each year. Q4. What qualifications do you need to become a REIT agent? Ans. To join the Real Estate Investment Trust community, you must have exceptional financial abilities. You must also be skilled in written and verbal communication, as well as possess strong technical abilities. You must be qualified to work as a data analyst. A bachelor’s degree in finance, statistics, real estate, or accounting is also required.
