b'How would you accommodate such a request anyway, unless you raise moneyfromnewinvestorstopaybackpreviousinvestors?Thisisthe classic definition of a Ponzi Scheme. What Kind of Investments Qualify as Mortgages, Liens or Interests in Real Estate?AccordingtoAttorneysRichardP.CunninghamandThomasG. Voekler of Hirschler Fleisher, a Professional Corporation, in their 2008 Article,RealEstatePrograms,AvoidingtheScopeoftheInvestment Company Act,19 per the SEC, in order to qualify for the 3(c)(5(C) Exception: 1.At least 55% of the assets owned by the Company must consist of mortgages, liens on, or interests in real estate, and the other 45% must be primarily real estate-related investments; 2.Further, a fund of funds that buys interests in another company that buys real estate, may not qualify under this exception, unless it has the ability to remove and replace the general partners (asset managers) in the company invested in, with or without cause;20 and 3.If the fund of funds invests in another entity that owns the real estate assets (such as a single purpose venture or joint venture), it must 19 Ibid.20 Thismakesthecasefordoingsidebysidejointventuresinsteadofinvestingasafundoffunds.139'