Anyone start a REIT in parallel with their brokerage business?
Curious if anyone on here has started a REIT to run in parallel with their brokerage business.  For years I have had clients that have suggested I start a REIT for them to put funds into as they trusted me to make CRE investment decisions and preferred to eventually be hands off with their investments rather than personally purchasing properties.  

A few years back a competing firm in my region started a side entity of their brokerage firm that is really still the same company however they market this "Capital Group" as a completely separate company focused on representing fund clients in acquisitions and dispositions as well as they have established a fund for clients to invest in for regional development projects and existing STNL.  I am entertaining making a push for a similar side entity within my firm and was curious if anyone on here has done such an endeavor?  How did you decide to structure this?  The good the bad?  Did you get any negative push back from existing clients that you may be competing with them in the market?  I would love to hear any perspective anyone has that has been down this road.

Thanks
[{"id": "fm86sn7", "text": "Does it have to be a REIT?  A lot of the brokers I work with also invest, and will generally be the GP.  Instead of creating a REIT they syndicate the deals on an individual basis, which is obviously smaller scale than a REIT but serves the same purpose.  The downside of this is that you have exposure to one deal as opposed to an entire portfolio.", "replies": [{"id": "fm8ft0f", "text": "&gt; REIT\n\nNot to mention, REIT opex is not insignificant, both establishing &amp; maintaining compliance.", "replies": [], "depth": 2}, {"id": "fma1u9h", "text": "Sorry I should have clarified, no, the plan would be to syndicate individual deals for some time before turning it into a reit.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fm8g7d4", "text": "REIT or fund? Why not just do private placements per investment?\n\nIs this just a semantic issue and you didn't mean REIT?\n\nI think this is the book for you. \n\nhttps://www.amazon.com/Best-Ever-Apartment-Syndication-Book/dp/B07W2VJ72Y/ref=sr_1_3?crid=3G59WE4U45M2J&amp;dchild=1&amp;keywords=syndication+real+estate&amp;qid=1585848799&amp;sprefix=syndica%2Caps%2C234&amp;sr=8-3", "replies": [{"id": "fma204a", "text": "I should have went into more detail.  The idea would be to not start as a reit.  We would begin by syndicating individual deals with a long term goal of going reit, not starting with it.", "replies": [{"id": "fmbos4x", "text": "Got it. Well thats a big goal. Go for it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fm9szvg", "text": "REIT sounds unnecessarily complicated.  Make it a fund and yes it sounds like a great idea.", "replies": [], "depth": 1}, {"id": "fmf1aar", "text": "Keep us posted as to how this goes. I honestly think there\u2019s no better time in the cycle to start laying the groundwork for a venture like this.", "replies": [{"id": "fmfliqk", "text": "Will do, we have things in motion with a goal of taking advantage of this downtime.  I will try to post an update later on.", "replies": [], "depth": 2}], "depth": 1}]