- Are returns guaranteed?
- No. The 10–12% figure is a target return based on historical performance and does not constitute a guarantee of future results. All investing carries risk of loss.
- How is this different from a REIT or Sukuk?
- Unlike public halal REITs or fixed-income sukuk (halal bonds), we manage a concentrated, operator-controlled portfolio of real estate assets. Returns come from rental income and disposition gains, delivered through direct partnership ownership rather than public market prices. K-1 tax treatment also allows depreciation to pass through to investors, which is generally not the case with public REITs.
- Is this Shariah compliant?
- Yes, what we describe as holistically Shariah compliant. The structure itself is a simple Musharaka with no conventional debt or leverage. Equally important, we hold ourselves to the deeper standard of how we treat tenants, contractors, and employees.
- Can I invest using my IRA or 401(k)?
- Yes. We work with Inspira Financial as our custodian partner, with no additional fees. Funds are moved into a self-directed IRA at Inspira, which then invests into the fund. Works for any IRA (Traditional, Roth, SEP) and former-employer 401(k)s. We coordinate the setup end to end.
- Can I contribute a rental I already own?
- Yes, through a Section 721 Exchange. You contribute your property to the fund in exchange for ownership units. Capital gains and depreciation recapture are deferred, and you gain diversification across the full fund with no active management responsibilities.
- Are distributions paid out as cash or reinvested?
- By default, distributions are reinvested back into your capital account, which lets your position compound over time. You can also elect to receive cash distributions via ACH at any point, and change that election as your circumstances change.