How to structure this company?

[Dan Smith]

Good morning everyone,

I have been investing in real estate for years but have recently come to the thought that I'd like to set up a company that would act as a small REIT. However, I know there are tremendous legal liabilities when doing something like this.

I'd like to structure the company where I advertise to investors to make a minimum contribution of $10k in return for a 10% annual dividend paid out quarterly over a 2 year term. After the 2 years is up the investors can receive their principal back. Now I understand that I am basically offering asset back securities to these investors. Has anyone ever heard of a small company being set up this way? Can I advertise dividends of 10% to the general public? I'm just looking for preliminary answers to these questions from the forum, I understand before acting on this a consultation with my attorney is in order.

Thanks,

Dan