US REITs are Real Estate Investment Trusts. Real estate investment trusts can flourish when the real estate sector booms. There are plenty of REIT employment opportunities for job seekers. REITs have how many jobs? REIT jobs—what are they?
What are REITs?
Almost 225 US REITs have a market valuation of over $1 trillion. Stock Exchange-listed REITs are public investment vehicles. REIT ETFs allow investors to diversify across real estate asset classes.
REITs manage income-generating real estate and related assets
REIT-purchased property isn’t for resale. REIT property is developed. Then, the investment portfolio uses the property to create income.
Investors can acquire and sell these assets cheaply. REITs are also more liquid than real estate assets. REITs trade on the NASDAQ, NYSE, and AMEX.
REITs enable large-scale real estate investments by groups of investors. Analysts expect more REIT positions as the sector grows and diversifies.
How Do REITs Work?
Congress created REITs in 1960.
REITs are like any other investment. Stockholders receive income from real estate investment trusts.
Congress created REITs with rules. REITs must be mutual fund-like, classified as corporations by the IRS, and widely owned by stockholders. REITs must also hold long-term real estate and fund it. The corporation must have 75% real estate assets and 95% passive revenue.
REITs can diversify a portfolio without adding risk. No investment is risk-free. .
REITs are exempt from corporate tax. Dividend stocks are often double-taxed. REITs have a substantial tax benefit because they are not corporately taxed.
REIT shareholders receive 90% of taxable income. Most equities yield less than 2%, but REITs often yield above 5%. For income or reinvestment, REITs are great.
Real estate values rise. Several REITs can sell valued properties and use the capital elsewhere. These tactics help many REITs outperform the market.
Most people can’t buy office towers or shopping centers. Congress created REITs so anyone can invest in these structures and profit. Financial planning requires a varied investment portfolio. REITs are real estate investments that act like stocks. Investment gurus promote real estate because it retains value throughout economic downturns. .
Selling property takes time
Yet, REIT investments can be bought or sold with a click.
Real Estate Career Statistics
The US Department of Labor says real estate brokers and sales agents are in demand. The industry employs hundreds of thousands of Americans at $51,220 per year. REITs pay far more than real estate brokers. Analysts make more than double real estate brokers and sales agents at $106,412. 274,000 full-time REIT workers. REITs indirectly create 2.6 million full-time jobs.
This means lots of jobs and a higher income than other real estate sectors.
REIT roles are diverse. These job descriptions will help you comprehend.
Development builds projects. This role suits project managers. This profession involves establishing new projects and financing them alongside others. Development jobs are prestigious, tough, and well-paid.
Acquisition jobs include finding new investments. These roles close transactions. Finance, marketing, business, and capital markets degrees are ideal for the job.
Property managers supervise leasing, maintenance, collections, and other tasks. That is to say, property managers have no requirements. Project managers and multitaskers are ideal candidates.
REIT property managers have significant opportunities. Career advancement is possible when different roles become available in the organization.
Asset Management oversees real estate investment portfolio operations and finances. However, asset managers must manage client assets according to investment goals and preferences. Clever asset managers create and manage client portfolios. Asset managers must collaborate with many teams. Asset managers collaborate with accounting, development, finance, and acquisitions. The asset manager must also comply with SEC, REIT, and Sarbanes-Oxley.
Asset managers often start in acquisitions or property management. Anyone with the skills can get an asset management job right now.
Investor Relations handles all REIT shareholder contact. The job pays well and suits financial or accounting graduates. Investor relations will organize the annual meeting and meeting documents including the annual report and proxy statement. SEC regulations must be followed. Accounting or finance majors should apply for this job.
How Many REIT Jobs Are Being Created?
One site shows there’s much possibility in the field. REITs are booming. Investors and other support jobs are needed periodically.
The REIT sector is large and growing. REIT companies require tight reporting and compliance. Many real estate investment trust professions demand accounting or financial experience. The bottom line is that REIT jobs can be found in most parts of the real estate industry, from rental to maintenance to sales. Your best bet for entering this fascinating field is to find someone, a friend or family member, and ask them to help you get in on the ground floor.