Education and Certification Requirements
All financial manager positions, including real estate finance jobs are very competitive. Larger companies with a property management division may demand that the real estate finance job seeker hold a bachelor’s degree in accounting, finance or another related business degree such as economics or risk management.
Experience may hold greater advantage for a candidate gaining employment than formal education. In fiercely competitive markets, experience as a property manager, real estate appraiser, or real estate agent or broker may be a plus. If the organization manages commercial buildings, having experience with commercial real estate will be a major benefit.
Real estate finance jobs are a hybrid between the traditional finance positions where certification through the CFA Institute for Chartered Financial Analysts or a license as a Certified Public Accountant gives a candidate an added benefit. Because of the complex nature of finance, pursuing continuing education on Federal and State laws and regulations is important.
Job Responsibilities
Real estate finance jobs focus heavily on finance. If a company is hiring a real estate financial analyst or manager, real estate holdings are probably a major asset on their general ledger.
Real estate finance job responsibilities vary greatly depending on the role the person fulfills for the organization. In some organizations, the real estate finance job may focus heavily on valuation, management and turnover of assets.
Other roles may have the real estate finance job work on using the property as collateral for general operations, or in finding leasing agents to keep the property productive.
If the real estate finance job is with a bank, then the role may be working with foreclosed properties. The focus for this position is in turning the asset around and removing it from the balance sheet for the least cost to the bank. The real estate financial manager may also be responsible for finding and managing vendors who maintain the properties as well as find real estate brokers who specialize in finding buyers for foreclosure properties. In that case, the real estate finance job will focus more heavily on providing financing for buyers, as well as maintaining the value of the property through the transaction.
In general, other daily responsibilities may include running financial models on a computer, keeping track of the condition of multiple properties, as well as analyzing the financial conditions of the communities where the investments reside for any changes that are beneficial or risky.
Skills
Real estate finance jobs require excellent communication skills. The financial manager may be required to provide status reporting at general meetings, as well as at higher level management meetings.
Possessing an aptitude for math is helpful. Also solid computer skills including advanced knowledge on constructing spreadsheets and using databases is important.
Understanding how property management and property utilization for increased revenue is extremely helpful.
Demonstrated excellent computer skills as well as knowledge of international finance are becoming prerequisites for most positions, as foreign investors have become a major investment stream.
The most important skill is experience in real estate finance. The field has complexities that are evolving with the decline in housing and commercial real estate value. By understanding what ways a company could create revenue with the asset through a history of experience could be the difference between success and failure.
Job Outlook
Because real estate finance jobs are part of financial management, competition is strong, mainly because the number of jobs is expected to be less than the number of people seeking positions.
While the economic changes that have recently occurred will influence real estate investment jobs, growth in the field is still expected to be strong. Competition for positions may increase markedly as more people with financial backgrounds or real estate backgrounds decide to change career paths and examine real estate finance positions.
The best way to stand out from the crowd is with experience and with desired education and certifications. Experience in accounting or finance and holding a Certified Public Accountant license gives a distinct advantage.
Growth for all financial manager positions is expected to be 13% from 2006 to 2016.
Career Path
Because all of the real estate finance jobs have very different roles and responsibilities within an organization, career paths may also vary. Showing success with real estate financial management, as well as an excellent grasp on the business functions may earn the financial manager a promotion to another position. Some may stay in finance and work their way up the financial side of the business. For people with a certified public accountant license, or a finance degree, this is the most likely path.
For real estate finance managers who hold a general business degrees or are interested in business management, promotions to marketing, operations or sales may be the next career step.
Salary Range
Salary ranges are wide, depending on the job title of the real estate finance job. If the job is classified as a financial manager position, then average salaries may range between $66,690 and $125, 180. Salaries may also have other bonuses based on performance of the assets, or through other management goals for the division or company.
Conclusion
Real estate finance jobs may be called many different titles. However, all of the positions require a solid understanding of accounting and finance basics, as well as an understanding of how properties should be valued, utilized and ultimately sold or converted to other assets. Job prospects will remain strong through 2013. However, competition for the positions will be strong, especially with other experienced finance managers or real estate experts looking at the field for a career change.
