Investing in real estate can be a great way to grow your wealth, but that’s not the only way to profit from property.
Real estate investment trusts (REITs) are companies that trade on the stock market with their stocks and hold property as an investment.
The best-paying jobs in REITs are those on the management teams who oversee the REITs’ operations and earnings.
Today we are going to talk about 25 best paying jobs in Real Estate Investment Trusts, However before that, let’s take a total look at what Real Estate Investment Trusts is all about.
Here is a break down of what we will be covering today.
What Is a Real Estate Investment Trust?
A real estate investment trust, or REIT, is a company that owns, operates, and invests in real estate.
A publicly traded business model, REITs have become one of America’s most popular investment vehicles.
Most U.S. REITs are primarily invested in residential properties such as apartments, warehouses, and retail locations.
While they are similar to mutual funds since they are both company portfolios that trade on public exchanges as units (or shares), REITs differ from mutual funds in one significant way:
Their shareholders get a piece of every asset owned by the portfolio – not just a single share – meaning investors can potentially earn significant cash flows if a REIT’s properties perform well.
How Do Real Estate Investment Trusts Work?
Real estate investment trusts (REITs) are companies that own and manage income-producing real estate or real estate mortgages.
Investors can buy shares of these companies, typically payout 90% or more of their taxable income as dividends to shareholders.
As such, REITs are often referred to as dividend stocks and make a great way to supplement your income from interest payments and capital gains.
Of course, not all REITs are created equal; some pay more than others.
Why should one invest in Real Estate Investment Trusts?
Real estate investment trusts are an excellent choice for several reasons, including:
Investor Confidence: Real estate is one of many different investment types that attract potential investors due to its inherent safety.
REITs generally offer higher dividends than other stocks, bonds, and mutual funds.
Diversification and Appreciation Potential: Diversifying in real estate through a REIT helps to protect against economic downturns or poor equity markets.
At the same time, there is still room for appreciation with assets that can appreciate both in good times and bad.
Income Growth and Stability: Over time, income generated by various real estate holdings can grow steadily while providing long-term stability thanks to real property investments.
Pros and Cons of Investing in REITs
While REITs are by and large an intelligent way to invest in real estate, there are cons you should be aware of before committing your money.
For example, a REIT’s management team has incredible influence over its share price.
That can be good and bad: good because they’re motivated to do well but flawed because they may not always make decisions in your best interest.
Also, it’s worth keeping in mind that being a shareholder in a REIT means you have little or no say in how things get done; as with other forms of passive income, you’re investing for revenue (dividends) rather than participation.
Risks & Returns of Real Estate Investment Trusts
The best-paying jobs in real estate investment trusts come with high risk and low returns.
Essentially, you can either make more money or take less of a loss—but not both.
Because REITs don’t need to pay corporate taxes on their earnings, they can offer higher dividend yields.
But higher dividend yields mean higher risk; many REITs have seen their share prices cut in half (or worse) during economic downturns and market corrections because of how leveraged they are.
Most experts recommend using REITs as part of a diversified portfolio rather than relying on them for income alone.
If you’re going to invest in individual REITs, stick with those specializing in real estate areas where demand is strong: health care, senior housing, self-storage, and industrial/warehouse properties.
For example, Extra Space Storage (EXR), Public Storage (PSA), and Healthcare Realty Trust Inc. (HR) all own property used by growing industries like healthcare and retail.
When these companies expand, they’ll need more space to house their equipment and inventory.
So even if your local economy suffers a setback, these types of REITs will be safe from decline thanks to steady demand from tenants.
Ways to invest in real estate investment trusts: There are two ways to get exposure to real estate investment trusts without buying individual stocks: exchange-traded funds (ETFs) and mutual funds.
The easiest way to invest in REITs is through mutual funds. The most straightforward approach is to buy an index fund that tracks a broad market index such as the S&P 500.
However, you may not want to rely on a simple indexing strategy for your REIT investments:
Stocks included in popular stock market indexes tend to receive high levels of investment from investors due to their high profile and liquidity, so they can be pricy.
It can be difficult for small investors like you to get a meaningful piece of them.
Exchange-traded Funds (ETFs)
ETFs are a popular option for many investors. Unlike mutual funds, ETFs trade like a stock.
That means there is no minimum buy or sell amount, and your order can be executed at any time during market hours.
The one drawback to an ETF that you should know is that it doesn’t allow you to select specific stocks; instead, it consists of different companies.
Depending on how well these holdings perform, you could see returns higher or lower than those of more considerable index funds.
Many financial advisors would advise using index funds over ETFs because they provide lower annual fees (average .05% versus .35%), which gives your investment more time to compound without being eroded by fees.
Different Types Of Real Estate Investment Trust
Real estate investment trusts, or REITs, are a diverse bunch.
Each one invests in real estate assets of some kind and distributes at least 90% of its taxable income to shareholders each year as long as it stays within specific parameters.
The three main types of REIT structures are equity REITs, mortgage REITs, and hybrid REITs.
Equity REITs own properties; they have no debt on their balance sheets and invest primarily in real estate leased to third parties.
Mortgage REIT companies borrow money to buy property (they lend out their equity) and payout most of their income to investors through dividends.
Hybrid REITS split up these different strategies for investing into various subgroups. Below is a more diverse list of types of REITs.
Medical Real Estate Investment Trusts
There are several different types of real estate investment trusts, but one that you might not have heard of is medical real estate investment trusts (or medical REITs).
Medical REITs focus on healthcare properties, so they may be able to provide value as you search for a new job.
Medical REITs typically aim to generate income from their portfolio of properties, including hospitals and senior care facilities.
The return for investors comes from both rent and appreciation—but these types of REITs tend to emphasize the latter.
Return on investment tends to be greater with medical REITs than other REITs because investments are generally more diversified.
Equitability Real Estate Investment Trusts
This type of RIET invests primarily in apartment buildings and other types of commercial real estate.
They are taxed like corporations and provide good dividends, so they are considered blue-chip stocks with long histories of paying dividends to investors.
Equitability Real Estate Investment Trusts also has a storied history of successful investment returns and growth, so it’s a good bet for investors.
To get started with Equitability Real Estate Investment Trusts, you’ll need about $200 minimum to purchase stock; you can buy additional shares as your funds allow.
Debt Real Estate Investments
For REITs that focus on real estate debt investments, income is generated from interest payments and loan repayments.
Income typically will be highest for assets with a term less than five years, which means higher cash flows earlier on and greater default risk if those assets don’t pay off as expected.
Such REITs are sensitive to fluctuations in interest rates; as rates rise and lower risk-adjusted returns over time, demand falls, and financing becomes more difficult to secure.
For example, falling net asset value in low fixed rate environments is a common trigger for activity selling off financial assets before cash flows run dry.
Additionally, some REITs will have specific criteria when assessing whether or not to invest in certain types of loans or companies.
Merchandise Real Estate Investment Trust
Merchandise REITs are real estate investment trusts (REITs) that invest almost exclusively in merchandise, such as groceries and appliances.
They aim to give investors exposure to inflation by buying goods that increase in value over time.
The top-paying Merchandise RIET is rich Co (MAC), which pays its shareholders an average of 2.90% on their invested capital.
However, MAC’s best-in-class dividend yield will soon face stiff competition from Ares Management and Blackstone Group LP.
Together, they have created a new $14 billion fund that they plan to use to purchase Merchandise REITs.
No word yet on whether they plan to buy MAC directly or look for shares on sale from another buyer first!
Domestic Real Estate Investments Trust
Real estate investment trusts, or REITs, own and manage a portfolio of real estate properties.
They trade just like stocks on major exchanges. There are several types of REITs, including regional and local real estate trusts traded on stock exchanges and private REITs that accredited investors can only own.
One type of trust is a domestic Real Estate Investments Trust (REIT).
It focuses solely on U.S.-based income-producing real estate assets such as apartments and office buildings.
These REITs typically have lower liquidity than other REITs and offer higher yields.
The 25 Best Paying Jobs in Real Estate Investment Trusts
The real estate investment trust (REIT) industry doesn’t have nearly as many jobs as manufacturing or healthcare.
However, there are 25 best-paying jobs in Real Estate Investment Trusts that can easily net you $80,000 to over $250,000 a year.
In comparison, a job in manufacturing makes about $30 an hour and only requires an associate’s degree or trade certificate; healthcare pays about $24 per hour for similar positions.
Here are 25 of those best paying jobs in real estate investment trusts alongside their roles and salaries.
- Senior Director
- Chief Financial Officer
- Asset Manager
- Vice President, Senior Analyst
- Senior Compliance Officer
- Project Manager, Operations & Development
- Accounting Manager
- Director, Leasing Agent
- Real Estate Agent
- Receptionist/Administrative Assistant/Office Manager
- Survey Respondent
- Computer Technicians
- General Counsel/Real Estate Attorney
- Real Estate Property Appraiser
- Marketing Manager
- Real Estate Broker
- Human Resources Manager
- Designers and drafters
- Construction supervisor
- Maintenance Supervisor
- Production supervisor
- Real Estate Developer
- Real Estate Photographer
The most senior job at a REIT is that of a chief executive officer.
A CEO typically oversees all aspects of a company’s activities, from capital markets to operations to strategy.
CEOs may earn between $7 million and $25 million per year, depending on how diversified their holdings are.
There were 1,430 REIT CEOs in 2011, according to data from the industry trade group National Association of Real Estate Investment Trusts (NAREIT).
The median pay for these professionals was nearly $7 million annually.
Even top earners who worked for large companies made less than half as CEOs did, averaging just under $3 million annually.
Chief Financial Officer
CFOs hold the top spot at REITs, paid $193,456 per year but can make up to $500,000 or more annually.
The job duties include performing accounting functions (balancing books), managing investments, and raising capital.
The competition for these high-paying jobs is challenging because there aren’t many of them available.
To land one of these gigs, you typically need a master’s degree in business administration and at least five years of experience as an accountant or financial analyst.
In real estate investment trusts, asset managers are responsible for managing a portfolio of properties.
According to Payscale, asset managers earn an average annual salary of $139,000 with no experience required.
Since REITs are somewhat new—particularly on Wall Street—experience is not always necessary.
However, individuals looking to enter into a career as an asset manager must first possess some level of education.
If you’re interested in becoming an asset manager at a REIT, consider enrolling in a bachelor’s degree program that includes classes such as financial accounting and finance and business fundamentals.
If you are interested in building design or are a creative type, you may be a good fit for a career as an architect.
Aspiring architects will need to earn a four-year bachelor’s degree from an accredited college or university, but don’t be daunted by that length of time.
Some students can finish their architecture programs by taking summer classes within three years.
However, those who wish to pursue graduate studies after obtaining their bachelor’s degree should plan on it taking longer than three years.
Architecture is one of the highest-paying careers available through real estate investment trusts, with mean annual wages approaching $100,000 per year as of 2015.
The job of an analyst is to evaluate real estate investment trusts.
The role can vary from evaluating commercial properties (like shopping malls) to apartments, hotels, and even storage units.
Analysts need to have strong communication skills and vital research and analytical skills.
Several positions make up analysis jobs, such as assistant analysts, property analysts, and executive-level analysts.
In addition to analyzing property investments at companies like Simon Property Group or Taubman Centers, you could also work for a private real estate investment company or a bank’s investment division if you wanted more regular hours.
Vice President, Senior Analyst
One of the top-paying jobs at a REIT is vice president, senior analyst.
According to Simply Hired, the average pay for a vice president and senior analyst was $84,510 a year as of 2013.
Although not all REITs will have job openings for VPs and analysts (partly because there is often less work involved than other positions), you can learn more about typical VP responsibilities.
Senior Compliance Officer
One of the best paying jobs is a senior compliance officer at a REIT.
Senior compliance officers make an average of $150,000 annually.
A large chunk of their income comes from bonuses and yearly incentive pay.
Bonuses are generally paid out at 100% percent of the goal, with incentives starting at 25%.
This type of compensation structure makes working as a senior compliance officer one of the highest-paid positions at a REIT.
However, to become qualified for such lucrative work, you’ll need to have worked for several years as an experienced risk manager or compliance specialist before earning your stripes in real estate investment management.
Project Manager, Operations & Development
Other best-paying jobs in real estate investment trusts come with Project Manager, Operations & Development at an average annual salary of $174,579.
This position requires a degree and three to five years of experience.
Knowledge of commercial real estate and legal issues is needed for this role.
Analyzing reports and financial information to recommend new projects for development is one primary responsibility for project managers who work in construction or property management.
Getting investor approvals, planning budgets and timelines, and ensuring compliance with regulations are also typical duties.
According to estimates from the Bureau of Labor Statistics (BLS), the job outlook for growth within REIT companies is expected to be strong through 2022, according to estimates from the Bureau of Labor Statistics (BLS).
Project managers have an employment growth rate that should be about 22 percent during that period as well, according to BLS estimates.
Accountants and auditors earn an average of $81,480 a year, according to PayScale.
An accounting manager is more senior than an accountant but not as senior as a CFO.
A four-year degree is usually required for entry into either occupation.
The U.S. Bureau of Labor Statistics projects accountants and auditors will see a 6 percent increase in employment from 2016 to 2026.
According to BLS data, employment for accounting managers is expected to grow 8 percent due to increasing interest by business owners and investors in growing their businesses through mergers and acquisitions and new capital investment programs.
Director, Leasing Agent
$228,474 per year: Investment companies are responsible for investing their clients’ money into various stocks, bonds, and other securities to increase their clients’ wealth.
They hire leasing agents to attract new tenants to stores and offices that have opened in newly constructed buildings.
According to Payscale, a director at an investment company can expect $108,000 – $110,000 a year as entry-level compensation.
Those who get promoted could earn as much as $228,000 per year.
To be eligible for these best-paying jobs in real estate investment trusts, candidates must have studied business administration or management courses with at least three years of prior work experience before making an application.
Real Estate Agent
You know how to sell a house and make money, but does your job allow you to also collect a check as a real estate agent for one of these companies?
Being an agent for one of these companies can be lucrative, with some earning six figures.
At some firms, reps are even eligible for commissions on sales outside of their bonus pools (to make money while they’re at home sleeping).
Another benefit: Commissions in real estate investment trusts tend to be paid monthly rather than yearly like publicly-traded REITs.
With that said, agents usually earn less in commissions with REITs than with regular public REITs.
That’s because agents have to split those payouts with their companies.
Receptionist/Administrative Assistant/Office Manager
The Receptionist/Administrative Assistant/Office Manager is one of those positions that, like many jobs in real estate investment trusts, you may assume is just a job.
In reality, it’s more than just a job: It’s an excellent opportunity to work with other people and help them succeed.
Think about how many opportunities you get to help somebody every day—as few as they might be—and think about what kind of career path will allow you to do that while helping others succeed financially.
The Receptionist/Administrative Assistant/Office Manager plays an essential role within real estate investment trusts (REITs) by greeting guests, answering phones and responding to inquiries, recording visitors and meetings for future reference on calendars, and scheduling appointments.
A survey respondent job in a REIT is a good fit for people who want to start their own business and earn some extra money at the same time.
It is a great way to supplement your income while you’re working toward another goal.
If you have free time and like talking on the phone, you may want to look into it.
The downside of being a survey respondent is that they sometimes require extended periods you’ll be on call.
You’ll also need to invest in your equipment, such as laptops or tablets.
Once you’ve purchased everything, though, your startup costs will be minimal.
Once you’re doing surveys full-time, earning $5 per month is feasible for many respondents.
Computer technicians are among those workers who have enjoyed some of the fastest pay increases, with wages up 6.9 percent over five years.
The median annual wage for these specialists was $70,310 in 2012. According to BLS data, they earned less than $42,440 on average as recently as 2007.
The typical computer technician was paid $36,110 a year before getting their first promotion and then moved quickly through relatively high-paying positions during a 12-year career with an average annual wage at the retirement of more than $83,000.
General Counsel/Real Estate Attorney
This job is ideal for the experienced attorney who wants to make a real impact on a company.
General counsel/Real Estate Attorney positions in REITs have high responsibility and require professionals who can take ownership of their projects.
These attorneys must have experience in handling mergers and acquisitions, IPO deals, capital markets work, corporate finance, tax issues, and legal contracts with government agencies at the federal or state level.
Professionals who earn $200,000+ are likely to report an hourly rate of $350 or more.
Real Estate Property Appraiser
A real estate property appraiser uses their knowledge of market values and trends to determine the value of a property in a particular area.
Using computer software, appraisers calculate the amount that real estate is worth.
They ensure that their estimate is consistent with comparable properties in the same area.
Property appraisers work for government agencies, financial institutions, banks, and title companies.
The Bureau of Labor Statistics states that an estimated 100,000 people are employed as property appraisers as of 2012 (BLS).
When choosing your profession as a real estate property appraiser, you will most likely look for jobs near you to travel easily to local houses and commercial locations.
You may want to compare your potential salary before making a move.
The marketing manager’s job in a RIET is to be responsible for the advertising and promotion of its REIT.
Since they promote the company’s interests, the pay can be pretty high.
These jobs tend to pay between $90,000 and $200,000 annually.
The typical requirements for these jobs are an advanced degree in business administration or a related field and years of experience working with marketing campaigns in similar companies.
Real Estate Broker
While you may think of a real estate broker as someone who simply acts as an intermediary between a seller and a buyer, most have extensive knowledge of the local market.
For that reason, many brokers make up to $100,000 or more a year.
According to Glassdoor’s latest report on the best paying jobs in RIET, the median pay for a real estate broker is $58,000.
However, it is essential to note that salaries can be considerably higher in high-demand markets such as Los Angeles and New York City.
Human Resources Manager
The annual median salary for a human resources manager in RIET is $136,718, according to PayScale.
That makes it the best-paying job in the industry.
The position entails recruiting and hiring new employees, handling payroll duties and developing company benefits and policies.
Designers and drafters
Generally speaking, we don’t think of real estate investment trusts (REITs) as high-paying gigs.
It is possible to make a pretty lovely income working for one.
Salaries and benefits for designers and drafters with REITs can range from $43,000 to $150,000 per year, depending on experience and education.
You typically need a bachelor’s degree in architecture or a related field to get hired by a REIT—but keep in mind that you might be able to move into one of these positions if you have a few years of relevant work experience.
Keep your eyes open for job listings that reference real estate terms like investment properties and project management.
The investor relations job in REITs encompasses a variety of responsibilities, but their primary function is to communicate with stockholders and other stakeholders.
These professionals can make anywhere from $100,000 to $150,000 per year at large REITs.
It’s worth noting that companies typically hire a team of corporate communications professionals who work together on investor relations strategy—an excellent environment for an aspiring PR professional to gain experience.
In addition to salary, you should expect extensive travel (including overseas travel) and significant time devoted to extra-curricular activities like conferences, seminars, and trade shows.
Real estate investment trusts, or REITs, invest in real estate properties to take advantage of rising prices.
Construction supervisor jobs in REITs are one of many lucrative ways to make money as a real estate investor.
The salary is high compared to other construction jobs because of all that goes into it: You need to manage your staff and supervise them, but you have to worry about project planning, budgeting, and dealing with clients.
But if you enjoy working with people and like having one big problem on your hands at a time, construction supervisor jobs in REITs may be for you.
In addition, real estate investing offers stability not found in most other types of employment.
A RIET is a company that owns and operates real estate, mainly commercial real estate.
The term is often referred to as REITs, also known as real-estate investment trusts or REITs.
Because there are many different types of REITs, it’s hard to give an average salary for Maintenance Supervisor jobs REITs;
however, some offer excellent benefits packages that may include health insurance, vacation time, and even relocation assistance.
In addition to more traditional Maintenance Supervisor jobs in REITs, some companies hire individuals specializing in operating computer networks or other electronic systems.
The role of a production supervisor varies depending on your industry, but it typically includes managing workers in charge of manufacturing or assembling a product.
Compared to other jobs in real estate investment trusts, production supervisor jobs usually pay well and offer excellent job security and benefits.
Production supervisors have been around for decades, with wage and employment data dating back to 1981.
According to BLS, these jobs typically pay $48K per year on average, but salary can vary greatly depending on where you live—especially if you’re willing to relocate!
For example, if you move from New York City to Dallas, TX, you could see an increase in annual salary anywhere from $2-6K/year, as reported by Payscale.
Real Estate Developer
As a real estate developer, you’ll manage projects from conception to completion.
Depending on your position in an organization, your responsibilities might include strategic planning, building design, oversight, budgeting, and financing.
According to data from Salary Expert, most real estate developers earn a median annual salary of $67,020 (or $33.04 per hour).
Salary Expert also reports that real estate developers in Real Estate Investment Trusts (REITs) earn some of the highest salaries among commercial realtors;
According to their data, REITs offer some of the most lucrative jobs in development and outstanding advancement opportunities for those who can rise through the management ranks.
Real Estate Photographer
A real estate photographer is a realtor who specializes in shooting photos of homes for sale.
They create images that show how beautiful and spacious homes can be and highlight their best features.
Some photographers also offer interior design services and travel to clients’ houses to help them stage their homes for sale.
But it’s not just about having great pictures, says Cindy Kalmbach, managing broker at Redfin in Bellevue, Wash.
The more detail you can add about why you like a home, what sets it apart from other similar homes, and how you envision living there helps buyers get excited about your listing.
And excitement leads to offers and sales.
Benefits of Working at REIT
Real estate investment trusts (REITs) are a unique industry to work in.
Because of their nature, REITs provide employees with benefits that are very different from most traditional corporate positions.
These benefits include:
- Flexible hours – which means less time commuting and more time with family and friends;
- Increased paid time off – because you’re working at a job where everyone is there to have fun!;
- Better work-life balance – since most REIT companies have greater flexibility around vacations and working from home;
- Job security – because there’s high demand for talent in real estate at every company level, you can enjoy a more secure employment future than in many other industries.
As a real estate investment trust, a business’s primary purpose is to purchase and develop real estate assets.
One of a REIT’s most significant advantages is its liquidity. REITs typically don’t have a long-term debt because shares finance them.
Because of that, it’s easier for owners to sell their shares at any time; of course, you should expect some selling pressure when you do so as well.
That liquidity provides another benefit: It makes it easy for investors to buy more shares or sell them short if they feel some wrongdoing or simply want out of a losing position.
And being able to access your money quickly means not having to worry about things like an upcoming home mortgage payment, which can make your life less stressful.
The REIT industry offers many attractive benefits and rewards, including training programs and career advancement opportunities. Clarity is one of these perks.
This benefit was designed to attract top talent to REITs and give employees a chance to understand better how their work impacts every aspect of a business’s success.
So if you’re interested in working for a REIT, be sure to ask about clarity during your interview; it could help you decide whether or not a REIT is right for you.
The most significant benefit of working at a REIT is diversification.
When most people think of real estate, they imagine buying a home to live in or investing a small portion of their savings in residential real estate.
Investing your entire nest egg into housing isn’t smart, no matter how many times you see it happen on TV shows like House Hunters.
Like any business venture, real estate has its risks.
And when one property sinks, it can sink everything else you have invested with it.
There are a lot of things to love about working at a REIT, and a stable income is one of them.
A common criticism of working for a large company is that you might get stuck doing one task for years, which can stifle growth.
But if you want stability and consistency, steady income from a REIT might be what you’re looking for.
In addition to stability and consistent paychecks, many full-time real estate employees will also receive health benefits (particularly those who work at REIT headquarters) and stock options.
Not too shabby!
REITs are real-world businesses, just like any other company.
REIT employees typically have a mix of technical and non-technical roles and sometimes get involved with more hands-on work (such as construction management) instead of day-to-day administration.
One of several benefits that can come with working at a REIT is this;
Others include excellent pay packages, opportunities for professional development, job security due to ongoing funding, and perks such as education assistance or discounts on stock purchases.
If you’re interested in business management and think you might enjoy working at a company that treats its employees well while also performing well financially, consider applying for one of these top ten best paying jobs!
Limitations of REIT – Real Estate Investment Trust
Real Estate Investment Trusts, or REITs, are not without their limitations.
While they provide an excellent way to spread your investment risk across multiple properties with different performance levels, they can be challenging to buy and sell without incurring enormous transaction costs.
In addition, when they take distributions or payout profits as income, your gains are taxed as ordinary income at regular rates instead of at long-term capital gains rates.
Because of these factors and others, you should look for more diversified investments for your long-term retirement savings plan.
A REIT is appropriate for short-term investing—for example if you’re saving up money for a down payment on a house or other big purchase that you know will happen soon.
There are limitations of REITs.
One of them is its interest rate.
The primary concern with most investors regarding REITs is rising interest rates.
It will impact these companies’ revenue and profit margins as they rely on debt financing to fuel growth and returns.
When interest rates rise, REIT companies would also be compelled to offer higher yields, thereby resulting in declining net income levels for investors.
It can affect their performance when dividends and net income are used as gauges of return on investment, rendering REITs less attractive to long-term investors looking for yield potential over time.
What separates REITs from most other real estate investments is that REITs are technically corporations, with all of the limitations of that designation.
For example, they’re subject to a 35% corporate tax rate. Of course, it can use credits and exemptions to reduce its tax burden below 35%, but taxes will always be high for REITs due to their structure.
The good news is that dividends are tax-free at both state and federal levels,
So, assuming you pay an average of around 20% in taxes on your income (which is slightly higher than most Americans), you’ll still enjoy an effective 15% after-tax yield on your REIT holdings.
REITs are a great way to invest passively, but they have some limitations.
Because REITs invest in physical properties, they face property-specific risks:
If a property is damaged, destroyed, or stolen—or if costs rise faster than rents and earnings—the value of that REIT’s shares will likely fall.
The same goes for supply and demand; a demand reduction can hurt commercial real estate values and harm residential housing prices.
REITs also face some liquidity risks:
The majority of REITs don’t pay dividends each quarter, which means investors who want their cash on demand must be willing to sell their shares at a market price–not necessarily at an attractive price.
FAQs on Best Paying Jobs in Real Estate Investment Trusts (REITs)
What is the definition of commercial real estate?
Commercial real estate is typically categorized by location, such as shopping centers, office parks, and entertainment complexes.
The largest commercial real estate segment falls under the umbrella term industrial properties; the second-largest category comprises medical properties (such as hospitals).
What are the requirements for becoming a real estate investor?
It’s also essential that you have an exit strategy in place before you begin investing. In addition, most investors don’t go it alone.
Instead, they partner with others. Investors who decide to be a jack-of-all-trades often come up short because they can’t pay attention to all of the areas where they are needed most.
To be successful as a real estate investor, you need partners who can help fill the gaps in your knowledge base and assist with areas that require experience or expertise that you do not possess yourself.
Is a Career in Real Estate Investment Trusts a Good Choice?
If you like analyzing companies, are good at math and spreadsheets, and enjoy crunching numbers and figuring out how to solve problems, then Real Estate Investment Trusts could be your cup of tea.
In order to make sure that a career in Real Estate Investment Trusts is genuinely a good choice for you, it’s essential to think about your long-term goals and personality traits before committing yourself to one course of action or another.
It can take some time to figure out whether a career in Real Estate Investment Trusts is for you. Don’t rush into anything. Think it through first!
What is the best paying job in real estate investment trusts?
For example, a highly experienced accountant may be looking for a senior financial analyst position with a specific type of REIT to leverage their expertise; perhaps an individual is just starting and would like to learn some new skills while getting paid well.
Everyone has different goals for what they want out of their career, and the real estate industry provides various pathways to achieve those goals.
How do REITs make money?
So, why do they make so much money? By law, real estate investment trusts must distribute at least 90% of their taxable income to shareholders as dividends.
The real benefit to investing in REITs is that they don’t pay corporate taxes because they are structured as pass-through entities.
Essentially, a REIT gives investors access to extensive property portfolios with limited risk by distributing assets across many different property holdings and assets.
These two characteristics allow REITs to produce generous dividend yields while still being financially viable companies over time.
Is it worth it to invest in real estate investment trusts?
Like stocks, REITs are traded on exchanges and must provide quarterly earnings reports.
REITs come in all shapes and sizes, but they can generally be broken into three categories: office buildings, apartment complexes, and retail space.
When it comes to investing in real estate through these vehicles, is it worth it? Yes, as long as you’re smart about how you invest.
Don’t expect to see Warren Buffett-Esque returns overnight—or even within a year or two of investing in these vehicles.
What type of real estate investments makes the most money?
Real estate investments are excellent for people who want to put their money towards something that makes sense economically and socially.
This is because real estate is one of the top drivers of the American economy, and it’s also an area where everyday people can get involved by investing in property development or being part of a housing-rehab project.
Real estate investments come with plenty of potential pitfalls; you need the proper knowledge and experience before diving into them, so we created our list of ten best-paying jobs in real estate investment trusts!
What is the average rate of return on a real estate investment trust?
For example, stabilized income funds typically provide an annual yield of between 4 and 6 percent, while private real estate funds offer much higher returns.
The average annual rate of return for a private real estate fund is 7.05 percent as of May 31, 2017.
Other best-paying job options are energy production, mineral extraction, and investment management services, which often pay between 9 and 11 percent per year.
What are the disadvantages of a real estate investment trust?
One of the main problems with a real estate investment trust is that it has underperformed its benchmarks.
The way they are set up makes them vulnerable to dire economic conditions.
If the market goes south and investors decide to cash out or start to pull their money out of these stocks, they will take a big hit.