Real estate portfolio managers can assist people and businesses in making real estate investments by utilizing their financial and real estate knowledge. Knowing the truth about real estate occupations will assist you in choosing a career. In this post, we discuss how one can become a real estate portfolio manager, the goals, responsibilities, and abilities of an excellent real estate portfolio manager, as well as the income and employment prospects of a real estate portfolio manager.
What exactly is a real estate portfolio manager?
A real estate portfolio manager oversees and maximizes investment properties for their customers by combining their knowledge of real estate and finance. To decide when to acquire or sell assets, they might examine the risks and potential rewards of real estate investments. Real estate portfolio managers can also give clients advice on their portfolios of real estate investments. These experts may focus on managing portfolios of particular real estate categories, such as homes or businesses.
What is the job of a real estate portfolio manager?
The following is a list of a real estate portfolio manager’s responsibilities:
- Utilize real estate knowledge to evaluate investment risk for customers.
- Allocate customers’ real estate assets to a proportionate portfolio depending on market trends.
- Choose real estate investments for your portfolios.
- Carry out real estate investment deals on behalf of clients.
- Use diversification techniques to ensure the profitability of your portfolios.
- Determine the investment tactics that maximize the value of the real estate in a portfolio of investors.
- Offer clients real estate investing advice.
- Report on the status of clients’ real estate holdings.
- Work together with real estate experts to evaluate the dangers, chances, and defects of potential properties.
- Sell any real estate that is underperforming.
Real estate asset managers vs. real estate portfolio managers
Here are some examples of how asset managers and real estate portfolio managers differ in the real estate sector:
Purpose
The main objective of a real estate portfolio manager’s position is different from an asset manager’s. Asset managers supervise real estate management on a wide scale to build business plans and oversee property leases, while real estate portfolio managers concentrate on ensuring the profitability of properties as investments.
Responsibilities
An asset manager’s responsibilities in real estate are different from the duties of a real estate portfolio manager because of their distinct areas of focus. These are an asset manager’s main responsibilities:
- Engage management and leasing companies for a property
- Approving real estate leases
- Make property business plans.
- Get rid of underperforming properties
Workplace relationships
Real estate portfolio managers and asset managers frequently collaborate to determine a property’s worth within a portfolio. These experts frequently work for the same property management firm or real estate investment organization.
How to Develop a Career as a Real Estate Portfolio Manager
The following are the stages you can follow to get hired as a real estate portfolio manager:
1. Obtain a bachelor’s degree
Earning a bachelor’s degree is the initial requirement for becoming a real estate portfolio manager. A few degree choices for future real estate portfolio managers are listed below:
- Finance: Obtaining a bachelor’s degree in finance might help you develop investment knowledge that you can apply to a position as a real estate portfolio manager.
- Business: A business major can provide you with the real estate and financial knowledge you need to get ready for a career managing real estate portfolios.
- Real estate: To develop knowledge about the field, you can obtain a bachelor’s degree in the subject.
2. Acquire experience
It can be difficult to develop the real estate and financial knowledge necessary for a job as a real estate portfolio manager. Gaining experience while pursuing a bachelor’s degree via internships, job shadowing, and mentorship opportunities is one way to overcome this difficulty. Here are some pointers for locating these chances:
- Network: You can meet people working in the banking and real estate sectors by attending job fairs, seminars, and public speaking events. Long-lasting professional connections and chances for employment and internships can be made through networking.
- Discover opportunities at a university or college: Numerous educational institutions give their students access to exclusive possibilities for professional development. This can assist you in discovering the businesses that collaborate with your educational institution.
- Attend corporate events: Attending real estate and finance-related events is another method for locating employment chances. This might assist you to discover local professional organizations that can introduce you to resources and open up networking opportunities for you.
3. Complete a master’s program.
You can choose to get a master’s degree to increase your knowledge of real estate investing. It may take this process two years to finish. A master’s degree can help you advance your real estate investment professionals in the following ways:
- Competition: Having a master’s degree can provide you an advantage over other competent job seekers.
- Pay: You may be able to earn greater pay by obtaining a master’s degree.
- Knowledge: If you have a bachelor’s degree in the creation of real estate portfolios and majored in finance, for example, you can diversify your knowledge by becoming an expert in real estate.
4. Create a resume
The next step is to create a resume that highlights your knowledge of finance and property management. Following are some pointers for creating a strong real estate portfolio manager resume:
- Describe how your experience has affected you. Whenever possible, demonstrate the results of your work to convince potential employers that you meet the requirements for the position of real estate portfolio manager. To increase the value of your portfolio by 15%, for instance, you may add, “Helped with portfolio diversification.”
- Resumes should be matched to job descriptions. Writing a CV that is in line with the position’s job description is an additional technique for creating a successful real estate portfolio manager resume. If the job description emphasizes crisis management, for instance, you can list any relevant experience on your CV.
- Include any pertinent education and experience. Your strongest abilities and qualities might be highlighted on your resume to convince hiring managers that you’re suitable for the position of real estate portfolio manager. Financial expertise, negotiating, and sales of real estate are a few instances of valuable resume skills for this profession.
5. Fill out job applications
You can utilize your CV to apply for portfolio management positions in the real estate sector once you have attained the appropriate credentials. You may connect with other property managers and finance experts to find out about open openings. To learn about employment options in this industry, you can also search online job boards.
Where do real estate portfolio managers find work?
Companies that employ real estate portfolio managers include the following:
- Property investment companies: Real estate-focused investment companies can employ portfolio managers to oversee their assets.
- Property management firms: Property management firms can benefit from the experience of portfolio managers, who can examine these firms’ investment potential and hazards.
- Banks: You can manage the real estate portfolios of banks by utilizing your skills in real estate investment.
Pay and employment prospects for a portfolio manager
The typical base pay for a portfolio manager, as reported by Indeed Salaries, is $94,152 per year. According to the U.S. Bureau of Labor Statistics, the market for financial analyst occupations, which encompasses real estate portfolio managers, will expand by 5% between 2019 and 2029.
Competencies for real estate portfolio managers
You can use the following skills in this career:
- Communication: Effective real estate portfolio managers may collaborate with other property management experts and report on the performance of investments with the help of excellent verbal and written communication abilities.
- Strategic planning: Real estate portfolio managers can manage profitable investments by having the ability to carefully plan their investment plans.
- Negotiation: real estate portfolio managers can utilize their negotiation talents to negotiate the purchase and sale of real estate.
- Analysis: You can measure investment risk and gauge the efficacy of a real estate portfolio using analytical skills.
What is it like to work in real estate?
The fact that no two days are ever the same when employed in real estate is one of its appeals. The type of real estate you operate in, your client’s needs, and the health of the overall real estate market all have an impact on a lot of what goes on each day. However, there are a few things that real estate professionals frequently do. These consist of:
- They research the property market and take note of any trends or patterns to make wise decisions and provide their customers with sound advice.
- Drafting leases, contracts, deeds, and other required papers
- Real estate professionals’ days at work are never the same, and there are many career routes you can choose from, including purchasing or selling homes, developing projects, and managing real estate.
- Real estate is a field that you can enter without a four-year degree. Building a clientele and gaining experience in this field is essential for success.
- The projected job growth for the real estate sector over the ensuing ten years is comparable to the national average for all occupations.
- Coordinating the negotiation of the sale of a residence with a prospective buyer
- Keeping up with market developments by reading appropriate trade publications or websites and going to conferences
- Reviewing and updating skills through training sessions and other methods
Benefits of a job in real estate
A profession in real estate has several benefits, including:
- Flexible hours: When working in real estate, you plan your schedule around the demands of the customers you serve and the assignments you must complete each day. As a result, you can choose when to begin and stop each workday.
- Good pay: Depending on what you perform, salaries in real estate might range from $50,000 to $100,000 annually. A large clientele can potentially result in increased earnings.
- Making connections with others: For someone working in real estate, getting acquainted with people and discovering their requirements are a component of the job. You also assist folks in achieving their goals, such as buying a property or discovering their ideal partner.
- Work outside of the office: Real estate is a great field for people who want to frequently leave the office because it involves both desk work and spending a lot of time out in the field touring homes or meeting with customers.
- Different workdays: No two days are ever the same in real estate employment, regardless of the type. You may meet with a seller one day, show potential purchasers homes the next, and then negotiate a deal.
Education prerequisites
The level of schooling required for a real estate job varies on the career path you take. You must possess a high school diploma or its equivalent. This will give you the fundamental language and math abilities you need for a career in real estate.
A bachelor’s degree in a relevant subject, such as business, finance, or real estate, may be helpful when applying for specific positions within the real estate market, even if it is not necessary to get started in the business. Furthermore, to work in some real estate positions, you might need to obtain a license. To be certain that you’re on the appropriate educational and/or training path, you should verify your local licensing rules as early as possible.
Professional standards
You might need to complete further coursework or obtain certification for certain real estate vocations, including:
- Council of Residential Specialists (CRS) courses: If you want to work as a real estate agent, you might need to take these classes.
- Pre-licensing real estate courses mandated by the state: Your local state may require you to complete prelicensing courses, such as those provided by the Certified Commercial Investment Member Institute if you intend to work as a commercial real estate broker.
- Licenses required by the state: Perhaps you need to get a state license. For instance, the Residential Accredited Appraiser (RAA) accreditation from the National Association of Realtors is required if you want to work as a real estate appraiser.
- Certifications for property managers: You may need to earn the Certified Property Manager (CPM), Accredited Residential Manager (ARM), or Accredited Commercial Manager (ACM) designation if you want to manage rental properties.
The typical real estate wage
As previously mentioned, real estate earnings vary depending on the type of employment you choose. Your location and amount of experience are other determinants of your pay. For instance, a real estate agent in a market with high demand owing to an inflow of new inhabitants will likely be able to earn significantly more annually than somebody working in a market that is undergoing a downturn. Having said that, below is a comparison of the real estate industry typical salaries:
| Job Title in Real Estate | Average yearly income |
| Leasing Agent | $114,255 |
| Title examiner | $52,935 |
| Manager of commercial properties | $71,105 |
| Property developer | $89,397 |
| Home inspector | $65,506 |
| Mortgage broker | $100,059 |
| Property Manager | $55,146 |
| Real estate appraiser | $63,143 |
| Real estate agent | $94,549 |
| Realtor | $96,455 |
Real estate-related careers
Real estate agents come to mind frequently when individuals consider real estate careers. That’s only one kind of real estate career, though, as the table above illustrates. Here are details on four possible routes you could take:
1. A real estate agent
National average yearly salary: $94,549
Primary responsibilities: The real estate agent, often known as a realtor, aids clients in the purchase or sale of residential or commercial properties. Realtors arrange for their customers to view buildings that meet their criteria and provide them with market information. Showing houses to potential customers, knowing local real estate laws, and advising clients on potential financing alternatives are some of their main responsibilities.
2. A property manager
National average yearly salary: $55,146
Primary responsibilities: A property manager manages the day-to-day operations and upkeep of a commercial or residential structure on behalf of the building’s owner. They are primarily responsible for ensuring that rent and leases are paid on time, checking that all facilities are operational, and resolving issues with tenants.
3. Property developer
National average yearly salary: $89,397
Primary responsibilities: Land is purchased by real estate developers, who then construct buildings there. They construct a variety of buildings, including condos and offices. Their duties include locating appropriate properties, overseeing the development project’s budget, collaborating with engineers and architects to complete drawings and blueprints, and putting together a construction management team that includes architects, building teams, and legal counsel.
4. A mortgage broker
National average yearly salary: $100,059
Primary responsibilities: A mortgage broker aids homebuyers in locating an appropriate mortgage lender and in securing a competitive mortgage rate. Finding out about the buyer’s financial standing, completing mortgage applications, educating clients on all the legal disclosures provided in the loan documentation, gathering the required documents for the loan application, and giving those documents to the lender are some of their main responsibilities.
Conclusion
Whether a career in real estate is the correct choice for you depends on your interests, skills, and career goals. If you enjoy working with people, have strong communication and negotiation skills, and are interested in the real estate industry, then a career in real estate may be a great fit for you.
Real estate professionals work in a variety of roles, including sales, marketing, property management, and investment analysis, among others, so you can choose a career path that aligns with your interests and strengths. It’s also worth noting that the real estate industry offers a great deal of flexibility and potential for financial reward, making it a popular choice for many people. Ultimately, the decision to pursue a career in real estate should be based on your personal interests, skills, and career goals.
Frequently Asked Questions about real estate portfolio managers
- What real estate position pays the most?
Selling real estate has the potential to pay real estate agents more than most. However, depending on the health of the real estate market in their region, they can also make less money. Mortgage loan originators, who make an average yearly income of over $200,000, are the highest-paying real estate professionals, according to Indeed Salaries.
- What is the future of employment in the real estate sector?
The U.S. Bureau of Labor Statistics estimates that the job forecast for the real estate sector will increase by around 5% between 2021 and 2031, which is on pace with the national average. This rate of employment expansion is comparable to the national average for every job.
The statistics bureau predicts that there will be 54,800 new employment available each year for salespeople and real estate brokers and attributed industry turnover to individuals retiring or changing industries. Additionally, a 4% job increase for loan officers is forecast.
- How does one begin a career in real estate?
The first step in beginning a real estate career is deciding on the type of career you desire. For instance, if you are good at negotiating contracts, you can think about working as a mortgage broker. As an alternative, if you are good with numbers, you might wish to work as a real estate developer.
The next step is to research the qualifications needed for the real estate position in terms of education and/or experience. Make sure you obtain the required certification, or if the position calls for a financial background—as in the case of a loan mortgage originator—you must also obtain the required degree and state-level government training.
- What is the time commitment to become a real estate agent?
Under six months. Again, confirm the criteria in your state, but typically, getting a license to operate a real estate business takes fewer than six months.
- Is a career in real estate the correct choice for me?
The decision regarding this career is ultimately up to the person. Real estate may be a good fit for you if you’re seeking a flexible job with a high potential annual salary. But as this article makes clear, there are a lot of things to take into account when picking a career, from education to work-life balance, and ultimately, whether you pursue a real estate career will rely on your goals for your career in the short and long terms.