Final answer:
REITs provide benefits to the real estate profession by acting as a source of funding for construction projects, offering a means for individuals to invest in real estate without directly owning properties, and providing liquidity to the market.
Step-by-step explanation:
REIT, or real estate investment trust, provides several benefits to the real estate profession. Firstly, it serves as a non-financial intermediary that offers loans to construction companies for home building projects, helping to facilitate billions of dollars for construction. This injection of capital can contribute to the growth and expansion of the real estate industry.
Secondly, REITs allow investors to gain exposure to real estate assets without directly owning and managing properties. By purchasing shares of a REIT, individuals can invest in a diversified portfolio of real estate properties, which can provide income through rental payments and potential capital appreciation.
Lastly, REITs offer liquidity to the real estate market. Unlike traditional real estate investments, shares of publicly traded REITs can be bought and sold on stock exchanges, providing investors with the ability to quickly convert their investment into cash if needed.