When new REITs firstly form, they usually obtain capital from traders and seek to increase a portfolio of real estate homes that matches with case study solution intended aim for that specific real estate funding trust, through a mixture of acquiring existing properties and constructing new ones. Beyond that point, REITs appear to be most other businesses, making strategic moves as necessary to capitalize on favorable trends while selling or discontinuing case study solution operation of less successful homes. For case study answer real estate agencies that are looking to elect REIT status, case study answer payoff is that REITs are allowed to bypass taxation at case study solution company level. Most corporate real estate businesses that are not REITs need to pay corporate income tax on any net income they bring in. Any closing after tax profit is accessible to case study answer company, either to reinvest in more belongings, or to come to shareholders through dividends. However, traders in non REIT real estate businesses end up nearly having their income taxed twice: once at case study answer company level, and once once they pay any taxes due on case study solution dividend income they obtain.