Is real estate investment trusts a good career path? According to Forbes, the answer is yes. Forbes just named REITs one of the top 10 finance careers of 2012. What does that mean? It means that REITs are one of the most rapidly expanding arenas for investment in the 21st century and that anyone who gets involved now is poised for some serious career growth.
A REIT operates real estate and raises money by issuing shares and paying dividends (distributions). REITs must distribute 90% of their taxable income, which usually consists of rents from commercial and residential tenants combined with interest from mortgage loans.
There are many different careers in real estate. Any of these careers can be a good one as long as you enjoy what you’re doing.
You need to ask yourself is, “Do I enjoy selling?” If the answer is no, then real estate might not be a good career choice for you. All of the careers in real estate require some selling to be done, but the more you can do without selling products, the better off you will be.
What are the best-paying jobs in real estate investment trusts?
We reviewed the pay plans of more than 50 different companies within the real estate investment trust (REIT) world and found many opportunities to earn a significant income while working on the buy-side of real estate investing.
The majority of companies in this sector pay two different types of compensation to their employees: a base salary and performance compensation. Base salary is typically paid out bi-weekly or monthly and is usually set up so that for every year an employee spends with the company, he or she receives one percent of his or her base salary as a raise.
On the other hand, performance compensation can be a draw against future commissions (most commonly paid quarterly), or it can be an actual commission paid at the time of closing (most commonly paid annually). This performance compensation can be paid without any additional performance requirements being met.
In addition to these two forms of compensation, the biggest difference between companies in this industry is whether or not they offer deferred compensation plans.
Many of the best-paying jobs in real estate investment trusts involve specific functions within the REIT rather than being related to the REIT’s industry. For example, while real estate investment trusts may have to involve HR professionals within the company, hiring and training new employees is typically not part of the duties of a chief financial officer.
Here are the ten best-paying jobs in real estate investment trusts, according to data from PayScale.
- Senior Vice President
- Chief Financial Officer
- Executive Vice President
- Chief Operations Officer
- Chief Investment Officer
- General Counsel
- Director of Product Management and Strategy
- Senior Vice President, Corporate Services & Controller
Is Real estate investing the right career path for you?
Millions of Americans dream of making a living from their passions. The problem is passions usually don’t pay the bills. However, there is one way to make money working in real estate: Investing in Real estate investment trusts or REITs.
Real estate investing is a business opportunity that anyone can take advantage of, be it investors or small business owners. While it may take time to build up a portfolio, real estate investing allows you to make money without dealing with the cash flow and overhead that are often associated with businesses.
The crucial thing to do when researching any investment opportunity is to look at the track record and past success of the company you’re considering. A company’s ability to pay a high dividend is expected, but sometimes the numbers are not what they appear to be.
In case you aren’t familiar with REITs, they are one of the most popular ways people make money in the market. They are essentially a real estate company that is traded publicly on the stock market. Since these companies own, develop and manage assets, they can provide investors with a dependable source of income, part of which is paid right back out to shareholders.
Market Realist wrote an article, “Here Are the Best Paying Jobs in Real Estate Investment Trusts.” The article takes a look at the best-paying companies and the pay rate per hour for employees.
The highest paying company is Simon Property Group, with an hourly pay rate of $44.26. The 5th highest paying company is Vornado Realty Trust, which has an hourly pay rate of $33.
Is real estate investment trusts a good career path? is it clear to you now?