Hi there! I'm doing some research into various finance-related career areas. One area of interest for me is real estate investments, something like REPE, real estate development, or a REIT.
What is job security like in the real estate investment industry? Does it vary based on investment strategy?
For example, should an associate at a firm making investments in real estate be concerned about their job security? What about someone at a higher level?
I am very interested in real estate investments, but would also like to pursue a career path with some degree of stability.
Thanks in advance!
would say that it is marginally better than what it would be in banking , but still not great like anything else in finance
The 3 examples you point out; REPE, RED, or a REIT are all very different in terms of job safety. Size of the firm in assets often is a great watermark for how stable your prospects can be outside of your individual performance / attribution to the company. If I had to purely rank in wide generalities I would say that:
The Riskiest: Real Estate Development Firms Why: If the firm isn't holding completed cash flow projects on the books they are going with the build and sell model which is essentially market timing. This is one of the riskiest places to be. If the economy slows down or projects are finished or you run out of deals to buy a developer is quick to trim overhead.
The Most Stable: REIT Why: REIT's generally look to accumulate assets and project stability to their shareholders (I'm assuming $500MM+ market cap REITs, not privates). They tend to be slower to expand their asset base (usually) and generally feature lower leverage when compared to private owners.
Since you added another variable to your matrix regarding junior versus senior here it goes. If your senior in any real estate company your a producer, meaning you bring deals in and/or raise capital. If your junior your expendable just like any other industry unless the fit with your team is great. Real estate companies, development, PE, REIT, or otherwise still hire on fit, not if your excel skills are 35% better than your peers.
.02
Thanks so much for the useful comments. Does anyone else have additional insight?
You want stability? Learn how to suck sausage better than 99% of the meatholes walking the street and you will always have a job.
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