b'then becomes subject to ERISA fiduciary rules, and additional regulation and reporting requirements.Forspecifiedofferingsorsyndicatescreatedtoacquireaspecific property, the interests are exempt from constituting a plan asset under the real estate operating company (REOC) exemption that is available when at least fifty percent (50%) of the assets owned and operated by the entity are directly owned real estate assets. What does this mean for syndicates? There is no limit on the percentage of interests that may be sold to self-directed retirement plan investors (such asself-directedindividualretirementaccountsor401(k)plans)bya syndicateessentially, 100% of the funds could be raised from self-directed retirement account holdersas long as the syndicate directly owns the real estate.However,thismaynotbethecaseifthesyndicateisinvestingin somethingotherthanrealestate(suchassecuritiesinsomeoneelses offering), or the syndicate will not directly own the real estate asset. If that is the case, make sure you keep track of the percentage interests owned by your pension fund investors and dont exceed the 25% limit. As in any regulatory framework, there will be penalties for non-compliance, which could be severe. 118'