Is Real Estate Analyst a Good Career Path?
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If you’re looking to invest, you’ll need to know more than just how to buy and sell stocks and bonds. Investing in real estate may be a viable option for those looking to diversify their portfolios and build a strong foundation. Investment firms and corporate finance departments need experts in real estate investment strategies to navigate the complexities of real estate finance. There is a position available for those with a keen interest in the real estate market and those with relevant work experience and a college degree. A real estate financial analyst points out the numbers on a graph.
It’s a good idea to learn about the career path of a real estate financial analyst and the skills and knowledge that are required to get started to make an informed decision. Getting a foothold in the investment banking industry is a surefire way to make yourself an asset to the team.
Who is a Real Estate Analyst
A real estate analyst conducts research and analyzes data to make recommendations that can lead to profitable investments in the real estate industry. They perform financial analysis and forecasting based on research data. Clients are then given advice based on the results of the researcher’s work. Real estate analysts provide analysis of market trends and economic conditions. The government, real estate agents, architects, and appraisers are just some people who will benefit from this information.
A wide range of organizations will need real estate analysts, including banks, governments, real estate firms, and investment firms. Analytical skills, mathematical ability, previous analysis experience, and communication skills are necessary for a successful real estate analyst. Working 40 hours a week for 40 days a year is typical for real estate analysts. If they have to travel to meet with stakeholders or make site visits, they may have to put in extra time and work on the weekends.
There is more to it than meets the eye when it comes to being a Real Estate Analyst. They make an hourly wage of $29.45 on average, for example. $61,252 per year! There are expected to be 20,300 new jobs between 2018 and 2028, an increase of 6%.
What Does a Real Estate Analyst Do
To carry out their duties, many Real Estate Analysts possess a specific set of abilities. We narrowed down the most common skills for a person in this position by looking through resumes. We found resumes with Analytical, Computer, and Math skills to be the most common.
Here are some examples of real estate analysts’ tasks typically performed on their resumes, taken from real resumes.
- Manage properties’ accounts receivables and payables.
- Track & coordinate all leads from websites, MLS, and social media.
- Implement and maintain a GIS system for new real estate companies and manage the company’s website.
- Develop high-yield income properties for family portfolios and manage investment properties for clients.
- Manage website marine traffic information to provide data analytics identifying trends for the global energy industry.
- Locate potential business opportunities and residential properties for buyers and locate qualified buyers for property owners.
- Perform cash flow analysis, BTCF, ATCF, PGI, EGI, NPV, and IRR calculations.
- Evaluate potential investments by utilizing DCF and NPV valuation methods to determine value.
- Generate valuations of IRR, NPV, and other financial ratios for investors, emphasizing return on investment.
- Value business and commercial real estate utilizing DCF, direct capitalization, sales comparison, and cost analysis.
- Take part in all design changes, from electrical and plumbing to HVAC and structural.
What are the typical qualifications for Real Estate Analyst jobs? They include the following;
- Bachelor’s or Graduate’s Degree in business, business administration, computers science or software engineering, or equivalent experience.
- Prior experience with business case development.
- He is a critical thinker and problem solver.
- Prior experience as a consultant.
- A collaborator and decision-maker.
- Strong time management and critical thinking skills.
- Experience with spreadsheets.
- Demonstrated negotiation and attention to detail.
- Fluent in inventories and pipelines.
- Experience with various programs, software, and systems, including IRR and GFEBS.
How Much Can Real Estate Financial Analysts Earn?
According to PayScale data from March 2021, the average salary for a real estate financial analyst is $60,487. With time and practice, that number may rise. As reported by real estate analysts, mid-career employees earn an average salary of $70,517, while those with more experience earn $74,465. The profession’s top 10% of earners take home more than $90,000 annually.
Financial analysts, in general, are in demand in the United States, which is consistent with the overall job market. The Bureau of Labor Statistics (BLS) has predicted that the number of analyst jobs will grow by 5% between 2019 and 2029, which is slightly faster than the 4% growth expected for all jobs.
Strong growth is attributed to the wide variety of financial products available on the market and the need for financial professionals knowledgeable about different regions and markets. Getting a foothold in the investment world by becoming a real estate financial analyst is one way to distinguish oneself from the crowd. You can achieve advancement in a financial department or investment firm by becoming an expert in a particular region’s real estate market or a particular kind of property.
How Can You Get Started on the Real Estate Financial Analyst Career Path?
Real estate financial analysts need to have a wide range of skills before beginning their careers. To impress future employers, you’ll have to show that you’re familiar with the legal requirements that govern the financial industry and that you’re capable of handling tasks like risk management and property valuation. Being a team player and a good communicator can also be beneficial. No analyst works in isolation, and you will need to communicate your plans to people outside of your department.
There are a variety of certifications that financial analysts can earn to demonstrate their expertise and advance their careers. Additionally, four years of experience in the industry and a bachelor’s degree in a relevant field are required to become a CFA charter holder. The BLS notes that a master’s degree may make it easier to rise through the ranks as an analyst, whereas a bachelor’s degree is sufficient for entry-level positions in finance and investment.
According to Investopedia, financial analysts’ day-to-day responsibilities can shift as they rise through the ranks of their companies. These high-ranking employees will devote more time to dealing with upper-level management and developing long-term investment strategies rather than collecting and analyzing data at the grassroots level.
If you have a master’s degree in something related to finance, your career options and opportunities will grow. To begin with, a master’s degree can open doors that a bachelor’s degree can’t, even for those just starting in financial analysis.
What Kind of Degree Program Can Prepare You to Work in Real Estate Finance?
Master of Finance degree programs are an excellent way to expand your knowledge and experience while enhancing your professional profile. You can take today’s online courses at your own pace, and the best colleges and universities still offer the same expert-led insights as in their on-campus programs.
If you plan to work in real estate finance, Northeastern University’s D’Amore-McKim School of Business’s online Master of Finance program may fit you. Several courses in the degree’s Investment Finance track are devoted to portfolio management, including Real Estate Finance and Investment, which examines the most effective ways to deal with real estate.
The topics covered in the Real Estate Finance and Investment course are taxation, the various forms of property ownership, valuation, market analysis, mortgaging, and investment strategy. You can build your knowledge of smart investing by combining this class with other courses, such as Portfolio Management, Valuation and Value Creation, and Investment Banking.
The online MS in Finance program can be completed in as little as 16 months, depending on how many online courses you take each semester. Thanks to this shorter schedule, you can get back to making progress in your career with a better understanding of the regulations, strategies, and market forces at play in real estate investment. Whether you want to move up the corporate ladder or refocus your career on real estate investment, a year immersed in financial analysis can be a game-changer.
Knowledge and experience gained from well-connected industry experts can increase your confidence and improve your decision-making as you take on responsibilities that significantly impact the financial health of a company in a competitive market such as finance.
Financial analysts can choose to specialize in a different field area rather than focusing solely on real estate. As an example, as a rating analyst, you would evaluate the ability of public and private organizations to pay their debts, information that management teams can use to assign them specific risk ratings. Alternative career paths include portfolio management, in which case you’d pick investments for a business or organization. In addition to real estate, one can include stocks and hedge funds.
The question of how to become a real estate analyst should not deter you from pursuing this career path once you’ve made up your mind to do so. Your best bet for landing the job of your dreams is to put in the time and effort to further your education, seek various real estate experiences, and improve your technical and communication abilities.