b'The 3(c)(5)(C) Real Estate Company ExceptionFirst, under 15 USC 80a-3(c)(5)(C), there is a widely used Real Estate Company Exception from Investment Company registration for companies who meet the following criteria:Any person who is not engaged in the business of issuing redeemable securities,17 , and who is primarily engaged inpurchasing or otherwise acquiring mortgages and other liens on and interests in real estate. [Emphasis added]. Inotherwords,theCompanymustbeprimarilyengagedin purchasing or acquiring mortgages and other liens on, and interests in real estate.18 What are Redeemable Securities? Aredeemablesecurityisanysecurity,wheretheholdermay withdraworredeemitsinterestsperiodicallyonrequest.Toavoidthis restriction, dont allow people to ask for their capital contributions back until you liquidate the funds investments.17 SeeShartsisFrieseLLP,U.S.RegulationofHedgeFunds,SecondEdition(2013),pp.163.18 Cunningham,RichardP.,andVoekler,ThomasG.,HirschlerFleischer,AProfessionalCorporation,RealEstateProgramsAvoidingtheScopeoftheInvestmentCompanyAct,2008.138'