Why invest in your fund versus a standard REIT?
The standard Real Estate Investment Trust, or REIT is an investment vehicle that allow people to invest their money and invest in specific Real Estate markets. REIT’s invest in properties and make money on the operations of those properties. Our fund Invests in properties but purchases them with the expressed purpose of improving or developing the property. Thus investors can take advantage of the appreciation of this faze of the properties life.
What is a Sharia Compliant Investment?
Sharia, is the Islamic legal system derived from the religious precepts of Islam. Its literal translation is “the way.” At it’s most basic it is the avoidance of transactions that involve interest on capital or riba. There is also an emphasis on sharing risk.
Why have a Sharia compliant investment?
We have chosen a Sharia structure for several reasons. First and foremost it helps us return more of our money to investors instead of lenders. Because of this, all other things being equal we can operate with less risk. Real Estate Development is a highly leveraged business and can be very complex from a financing standpoint, with multiple stacks of capital with multiple returns at different stages of the projects life cycle. With a Sharia compliant structure we can share all of those levels of profit with our investors instead of splitting a number of different ways in the completion of a project. Additionally we allow organizations and people who would otherwise not be interested in these investments to take part in these deals.
How Safe is this investment?
Any allocation of funds involves risk, we cannot guarantee a certain return. We believe with our structure we offer the ideal vehicle to invest in Real Estate Development.