First of all, you need to install yeoman and generator-sails-rest-api:

sudo npm install -g yo generator-sails-rest-api

You must create your project directory and then initiate the generator under the project directory:

mkdir my-project
cd my-project
yo sails-rest-api

You will be prompted to answer the questions. When you answered to those questions you will get configured Sails project.

After project scaffolding you can use it as a simple NodeJS server. Just run the app.js file and all.

npm start

Congratulations, you have set up your Sails REST API 👍