Have you always had your eye on getting into the real estate industry? Maybe you aren’t keen on working as a real estate agent but know you want to be involved in the industry somehow.
You may be a great fit for real estate investment trusts if you have a good mix of real estate and finance expertise. But you might ask yourself, “Is real estate investment trusts a good career path?”
They can be for the right people. The key is understanding the personalities and skills that work best for working in the real estate investment trust industry and the pros and cons.
All jobs have good and bad sides that you should understand before starting a new position, including those in the real estate industry.
What Are Real Estate Investment Trusts?
Real estate investment trusts, known as REITs, are publicly traded companies operating as trusts. REITs own, manage, and sell properties, and investors can purchase company shares to get a diversified real estate portfolio without owning real estate properties themselves.
The Securities and Exchange Commission regulates publicly traded REITs—the shares trade on the stock exchange, like regular stocks.
Like most real estate investments, there are many options for real estate investment trusts and many opportunities to work in the real estate investment trust industry.
Understanding the different types of REITs and positions available in each can help you choose the perfect career.
Mortgage REITs
Mortgage REITs invest or purchase mortgage debt on commercial properties. The real estate company acts like a lender rather than a landlord. Mortgage REITs may finance real estate investors directly, or they may purchase already funded mortgages with predetermined interest rates.
Investors earn interest from the borrowers monthly, plus a return of the principal borrowed through regular monthly payments. Like any investment, there is a risk of default and total loss, but a good REIT diversifies its funds…