We’ll learn more about this type of job, the salary information, and the factors that might influence your pay.
What Is A Real Estate Investment Analyst?
A real estate analyst is hired by a bank, investment company, or another company to monitor the market and check appraisal evaluations. They can also see how the portfolio of an investor is performing.
This position is less about selling property and more about the finances of real estate. You’ll find a real estate investment analyst in the financial department of a real estate company.
Their big purpose is to assess the risk and put together profit reports for different real estate investments.
Understanding Local Trends
They will also look at the trends in the local market and understand how that will change their portfolio. Higher unemployment rates and lower selling prices can hurt a portfolio. The analyst needs to stay ahead of the curve and keep their finger on the pulse.
They are the first line of defense against a bad market.
The other role of an analyst is to predict what’s going to happen in the area. Seeing an influx of senior citizens move into an area means that the need for low-maintenance housing needs to increase.
Recent college grads moving into a town usually means that small families are going to start populating the area. Having multiple-bedroom homes is a requirement for the houses in this area now.
When an analyst can accurately predict what the future real estate market will look like in an area, they will be able to put together a stronger portfolio.
This means that a real estate investment analyst can also make suggestions about what types of houses to buy and build depending on these trends.
Typically, people in this profession have a bachelor’s degree in math or finance, and they have some type of real estate background.
Analysts with a background in real estate are very valuable for their role. Understanding how the housing market works helps the worker to understand the portfolio better.
Does a Real Estate Investment Analyst Sell Houses?
Seeing the words “real estate” in a title typically leads you to believe that selling houses is involved.
In the case of an analyst, there is no selling or buying houses. Their role is strictly to take a look at the portfolio and crunch the numbers.
Real Estate Investment Analyst Salary
Like other jobs in the market, there’s a wide salary range for real estate investment analysts.
A real estate investment (REIT) analyst salary shows that there’s a range between $30,000 and $118,000. The national average is right around $67,000.
Working for A REIT
A Real Estate Investment Trust (REIT) is a term you’ll hear a lot in the real estate world.
A REIT is a way for an everyday person to own real estate holdings and invest in real estate.
A REIT analyst does a similar job as a standard real estate analyst. The big difference is that they’re focused specifically on a certain REIT and its performance.
Due to the additional knowledge and education needed to perform this job, the expected salary is much higher.
A REIT analyst salary can flux between $51,000 and $173,000. The national median is $105,000. In New York, you can expect a bump of about $25,000 higher than the national numbers.
Requirements to Become REIT
Of course, no one can just randomly decide that their entity is a REIT. There are guidelines and requirements to become REIT.
- The organization needs to have transferable shares, a minimum of 100 shareholders, and less than half of its shares can be held by 5 or fewer people.
- The operation must see 75% of its income from real estate sources, can’t have more than 5% in bonuses, and must invest more than 75% of its assets in real estate.
The reasons behind these requirements are to legitimize a REIT. Without these regulations, anyone can open a shell company and trick investors into essentially paying their bonuses.
It also gives investors a certain level of trust. Knowing that rules are in place to keep a REIT legitimate incentivizes more people to invest in a REIT.
Top Earnings by State
As you search around the country, you’ll find that the salary goes up and down with the local cost of living. The real estate market also affects how valuable this job is.
For example, you’ll find the highest average real estate investment analyst salary in New York. This is undoubtedly due to the booming real estate market of the city. Right behind New York is Massachusetts and Washington—both known for their lucrative real estate markets.
Likewise, among the lowest average real estate investment analyst salary states are North Carolina, Missouri, and Mississippi. These states are much more rural and don’t have the same real estate backbone that the top three states have.
Within your state, you’ll find that the highest salaries can be found in the hottest real estate markets. For example, upstate New York salaries will be lower than positions in the city.
This leads us to better understand the factors that affect salary.
Factors That Affect Salary
There are factors that will change how much you will get paid to be a real estate investment analyst. Don’t be surprised to see job offers above or below the national average.
The best salary can be expected for someone living in a hot real estate market, with a good education, and lots of valuable experience.
As mentioned earlier, the average real estate investment analyst salary fluxes with the local real estate market.
It makes sense. You can only perform your duties as a real estate investment analyst if there’s a real estate market to analyze.
In less-populated and more rural areas, the need for an analyst subsides because you won’t find large real estate agencies residing over the local homes.
On top of that, the same factors that affect salary in other positions still hold true here. Where you received your education, what degree you hold, and how you performed in college can also change how much money you make in this profession.
That’s not to say that a degree is required in this profession, but it definitely helps as far as your salary is concerned.
Your experience in the field will also make you more valuable for this role. You’ll find that on the upper end of the salary spectrum, people have a lot more experience.
This is the same case with most jobs in the market, so it shouldn’t come as a shock.
Real Estate Investment Analyst Salary Outlook
Over the past 10 years, the average real estate investment analyst increased by $20,000.
There is reason to believe that this uptick will continue in the future years as the power of prediction and analytics becomes more important for real estate companies.
Now you know more about the salary range of a real estate investment analyst. There are factors that can raise or lower your expected salary, and there’s a lot that goes into holding this title.
For people who love real estate and math, there’s no better combination.
Work with a Real Estate Agent in Kansas City
With all of the number-crunching skills you have as a future real estate investment analyst, you are certainly great at comparing the value of your own investments. But you might also want a little help with the sales side.
If you are selling property or looking to buy a home in Kansas City, you'll want to work with a real estate agent you trust. Hills Real Estate is a local boutique brokerage that was founded in Prairie Village. With your financial expertise and their excellent communication, you'll be a team that can't be beat.
Follow Hills Real Estate @hillsrealestatekc