How to start/structure an organization similar to a REIT

[Daniel Hart]

What would you recommend for someone who wants to start something similar to a REIT, but on a much smaller scale?

Let's say you have 10 friends who want to provide capital that you intend to pool together to invest in real estate Your goal would then be to provide them a fixed or variable rate of return. As the entity grows, your intent is to market that investment as a product to where investors could receive fixed and secured returns.

What type of entity would be best to handle a plan like this?

Thanks