What are Real Estate Investment Jobs?
Although the term real estate investment can be used to refer to someone who purchases property for the purpose of turning a profit either by reselling it or converting it into rental property, in the case of real estate investment jobs the phrase most commonly refers to a specific type of investment banker who focuses on real estate.
Basically, investment bankers are responsible for forming a bridge of sorts between people who need money to finance their needs and investors who want to offer money that will pay off for them in the long run. In the case of real estate, investment bankers typically are in the business of selling mortgages to investors. The investors then earn money by profiting from the interest paid on the mortgage which is usually quite significant. When holding real estate investment jobs, you will be primarily responsible for what is known as the repackaging of these property loans into several types of products, including several types of securities.
Of course, being this type of investment banker does not mean you can’t also become involved in building your own portfolio of property that can help generate a sizable stream of income for you and your family.
The Expected Work Environment
When you hold real estate investment jobs, you are most likely to work in an investment company. There are a handful of major players in the industry. Many of them, such as Lehman Brothers, have had their names in the media recently because of their own financial failures. However, you will be able to find available positions at a number of locations.
Generally, you will be working in a metropolitan city. New York is home to the largest percentage of real estate investment jobs but you’ll also find divisions in other major cities, including Los Angeles. You may also have an opportunity to work globally since many of these major investment firms have offices around the world.
Of course, you should be prepared for working in a stressful and fast-paced environment. Any type of investment career is going to be a challenging one because of the ups and downs of the market. Many of your clients may also make your life difficult. Remember these individuals are dealing with their own money and don’t like losses so when things aren’t going well they may not exactly be the easiest people to work with.
You may also end up working with a diverse array of clients. Because many foreign investors have been interested in purchasing up our mortgages, you may find yourself working with individuals from almost every corner of the globe. With real estate investment jobs, you are also likely to work long hours. For the very reason that you may work with individuals from around the world, you may need to be available at unusual times. Traveling is also often going to be part of the job.
Education & Training
If you are interested in real estate investment jobs, you will need at least a bachelor’s degree. The best choices for majors include finance, accounting, economics, and similar business-related fields. Although not all firms will expect you to have a college degree, you will need one if you are going to attempt to work for larger firms. To improve your chances of securing a job, you should consider going further and earning an MBA.
While you are attending college, you should take the opportunity to complete an internship at an investment firm so that you can get first-hand experience with the different aspects of the job you are hoping to hold. This will be the best way for you to determine if the career is right for you. Once you obtain a position, you can expect to receive a great deal of on-the-job training.
Most real estate investment jobs will require you to earn a license through the Financial Industry Regulatory Authority (FINRA). To receive your license, however, you must meet two qualifications. First, you have to work for at least four months at a firm. Second, you need to pass the General Securities Registered Representative Examination which takes about six hours to finish. You will probably also need to pass the Uniform Securities Agents State Law Examination for the state in which you attend to work. While this may seem like a major challenge, the firm that hired you will do what they can to assist you in passing them. You will also need to complete coursework periodically to stay up-to-date.
Outlook for Real Estate Investment Jobs
Because of the growing interest in real estate investment, these positions are expected to grow even faster than average. However, those calculations were done prior to the most recent economic downturn. Based on those figures, the growth rate for these types of jobs was around 25% between 2006 and 2016. Part of the reason for this tremendous growth was that so many of the baby boomers would be getting more involved in investments.
The average salary for real estate investment jobs is around $81,000. However, most are paid with a base salary then earn bonuses on the deals they make.
Conclusion
If you are planning to pursue real estate investment jobs, be prepared to work your way up through the firm. Make sure that you study hard so that you can earn your license and be prepared to make some lucrative deals on behalf of your clients. If you do this, you will start to work your way up, one day at a time.
