(there are other conditions as well, you must actively participate, be at least a 10% owner, etc) If your deduction is not allowed, all is not lost.

If you really just want to learn about real estate investing then you'll learn faster and more by just participating on these forums, listening to all the podcasts, and perhaps joining local meet ups.

We deliberately filed under that exemption to allow non accredited to participate.

You must keep the ownership percentage the same at all times and all income/expenses must be split according to your ownership percentage.Be sure to seek help of a professional who can guide you and structure this correctly so you can avoid violating prohibited transactions rules:https://www.irs.gov/retirement-plans/plan-particip...

If this is a foreclosure sale then all participating bidders must play by the same rules... competitive bidding. 

Has anyone participated in this program or know anything about it?

For my SDIRA, I write paper and do equity participation deals with flippers. 

The prohibited transactions (the don'ts) are very clearly identified by the IRS here:https://www.irs.gov/retirement-plans/plan-particip...So in most cases there is very clear line between the do's and don'ts.

You personally taking a participant loan from your 401k and then you personally investing in your own deal (not your 401k).

That way the investor is tapping the benefits of cash flow and participating in appreciation over time.Lastly, If we do the math, someone who has a good solid investment portfolio in large markets can now fund several MF investments in smaller markets using a relatively small portion of equity in their existing portfolio.