For many aspiring professionals who want to build a lucrative career in investment banking or private equity, the journey starts right out of college with the Investment Analyst role. Real estate investment analysts typically have a Bachelor’s degree in finance, real estate, accounting, or a related field. A Master’s degree in business administration, finance, or real estate can also boost their career prospects. But that’s not all! These analysts need to have strong skills in financial analysis, financial modeling, and MS Excel to do waterfall calculations of returns to investors. Ideally, they have knowledge of real estate markets, investment strategies, and risk management. It’s not an easy job, but many aspiring banking and investment professionals step up to the challenge.
Typical Job Description and Career Path
Real estate investment analysts typically start as analysts and progress to senior analyst roles, asset managers, portfolio managers, directors of acquisitions, and eventually VP Asset Management or VP Acquisitions. Whew, that’s a mouthful! They analyze real estate market trends, research investment opportunities, perform financial analysis and modeling, prepare reports and presentations, and make investment recommendations. In some sense, they’re jacks-of-all-trades in the world of finance.
According to the Bureau of Labor and Statistics, the median annual wage for financial analysts, including real estate investment analysts, was $83,660 in May 2020. That’s not too shabby! The lowest 10 percent earned less than $50,150, and the highest 10 percent earned more than $167,420. Of course, these salary ranges increase depending on area of the country, and prestige of the firm.
Private Equity Firms and REITs that Hire Real Estate Investment Analysts
Real estate investment analysts are hot commodities and are sought after by private equity firms and REITs. Some of the top private equity firms that tend to hire real estate investment analysts include The Blackstone Group, KKR & Co. Inc., and The Carlyle Group. Meanwhile, REITs that hire real estate investment analysts include Simon Property Group, Vornado Realty Trust, and Boston Properties. These firms know that real estate investment analysts are worth their weight in gold.
At TalentWoo, we’re the matchmakers of the real estate industry. We provide recruiting and RPO services for clients looking to find the best talent in the market. With our strong network of real estate professionals and customized solutions, we help real estate investment firms and analysts find their perfect match. If you’re looking for your next opportunity, or if you’re a company looking to hire the best of the best, we’ve got you covered. Call us today for a consultation at 480-413-9400.
Bureau of Labor and Statistics: Financial Analysts https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm
Investopedia: Real Estate Investment Analyst https://www.investopedia.com/terms/r/real-estate-investment-analyst.asp
The Balance Careers: Real Estate Investment Analyst https://www.thebalancecareers.com/real-estate-investment-analyst-4154286