Yes, an individual or group of founders can establish a private real estate entity or structure a corporate portfolio to operate like a real estate business, but qualifying legally as a formal tax-exempt real estate investment trust involves meeting rigorous statutory requirements set by tax authorities. These requirements include having a minimum number of shareholders, avoiding heavy concentration of ownership among few individuals, deriving specific percentages of gross income from real estate rents, and distributing at least ninety percent of taxable income annually to investors.