Is Real Estate Investment Trusts a Good Career Path
Jun 28, 2023
The real estate market has a compound growth rate of 7.6% and is a stable industry, which is why it’s a great place to start a new career.
Real Estate Investment Trusts offer many opportunities if you’re looking to kick start your career in this field. You can work in a range of positions from a real estate broker to an auditor and more.
Let’s explore the benefits and downsides of this career path in this article.
How Does a Real Estate Investment Trust Work?
Before looking into the career opportunities of a real estate investment trust, it’s important to know how this type of business functions. A REIT is a listed company that deals in real estate and whose shares are traded on the stock exchange.
Owning shares in a REIT is similar to owning stock. The only difference is that REIT companies have real estate holdings and commercial properties as assets. Some investors prefer offshore real estate trusts. This model allows investors to hold sections of real estate without having the investment to buy large commercial properties.
Additionally, you can trade the shares of a REIT in minutes, which makes the transfer of real estate assets much smoother. Compare this to the time involved in buying and selling properties!
The REIT model is ideal for investors looking to own commercial property shares without having to invest a fortune in property development. What’s more, REIT share owners won’t have to worry about property maintenance, rent collection and other aspects of property management as this is taken care of by the company.
This is where several career opportunities come in as Real Estate Investment Trusts require experts to manage the properties under their umbrella.
The Best Paying Jobs in REITs
If you want to start a career in real estate without getting stuck as a real estate agent on a purely commission-based salary, working at a REIT is a good alternative. While there are multiple job opportunities similar to what you’ll find in regular companies, REIT firms have some exceptional positions as well.
Here are some of the best jobs in a REIT career:
Real Estate Broker
With expected annual earnings of over $150,000 and a flexible work-life balance, this is the best job you can get in a REIT. If you have good selling and negotiating skills, this may be the perfect job for you.
Real Estate Analyst
Analysts have always been in demand and the real estate market is no different. As a real estate analyst, you can earn over $150,000 annually. You’ll need to learn about real estate investing and have a good command of different real estate types. However, you’ll need to be exceptional with numbers and analytical software.
Real Estate Attorney
Working as a real estate attorney for a REIT can be one of the most lucrative careers you can pursue. While you’ll have to have specialization in property law, the pay is well worth it as you can expect to earn around $175,000 annually from this position.
Real Estate Agent
While working as an individual real estate agent may be a commission-only job, being attached to a REIT as an agent can be lucrative. Some REITs will go with the commission-only route,, but most pay their real estate agents a fixed salary along with commissions. There is no cap on how much you can earn as a real estate agent as it all depends on your commissions.
The Benefits of Working in Real Estate Investment Trusts
If you’re looking for a career path with stability, decent compensation and multiple growth opportunities, working in REIT is a great idea. The real estate industry is relatively stable and has multiple opportunities to earn well.
Here are some of the benefits of choosing Real Estate Investment Trusts as a career path:
It’s a Stable Industry
There’s a good reason why many investment firms recommend keeping some assets in real estate, and that’s due to stability. The real estate industry is comparatively stable and can be profitable even during recessions.
Unlike other consumer goods or service industries, the real estate market always has stable demand, allowing investors to get a consistent return on investment.
So, a job in a REIT is a great way to ensure stability and the last thing you have to worry about is losing your job because of low demand.
The Compensation is Good
One benefit of working in a REIT is that the compensation schemes are usually more competitive than many other firms. This is due to RIET firms requiring competitive and experienced staff as the stakes are higher for wrong decisions. Also, there is more responsibility as you may be dealing with higher valued assets.
Most Real Estate Investment Trusts offer competitive compensation packages that will include decent time off, sick leaves and bonuses. Some jobs may also have a decent commission scheme on top of a fixed salary.
If you’re looking to land your first six figure job, the real estate industry is ideal!
There are Multiple Opportunities for Career Growth
When it comes to choosing a career path, one factor you should consider is career growth. Fortunately, working at REITs gives you multiple opportunities for career progression as REITs manage large assets and are constantly expanding.
You can start out as a sales associate or surveyor and use your skills and experience to land a job as an analyst after a while.
Most REITs are expanding rapidly and this leaves multiple opportunities for fast career progression. However, you’ll still have to focus on improving your skills and amassing experience to land a better job.
The Work Environment is Good
What makes REITs a good career path is that the working environment in most of these firms is relatively stress free. There’s no constant worry about dealing with rude customers and you aren’t usually under pressure to meet tight deadlines.
Nowadays, many REITs are offering hybrid work and you can work comfortably from home while only visiting the office occasionally.
How Much Can You Earn in Real Estate Investment Trusts?
Your earning potential will vary based on your skills, qualifications and experience, but most jobs in REITs pay well. Entry level positions may pay between $40k-$60k, and more experienced employees may earn well over $120k.
However, the range varies based on your position, commission scheme and other factors. If you really want to earn decently in a REIT firm, try working in a position with a more flexible compensation structure.
This way you can earn decent commissions on top of your regular salary and career progression will be based on merit.
The real estate market is growing rapidly and this opens new opportunities for a successful career path. A career in a REIT is a good choice as you’ll be able to earn lucratively with a good work-life balance. Best of all, you won’t have to worry about job security and market instability affecting your job!