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Key Takeaways:
This is the first Shariah-compliant single-family residential real estate fund in the United States open to non-accredited investors. You do not need a mortgage, a large down payment or accredited status to participate. The minimum is $100.
Until now, Muslim Americans who wanted real estate exposure faced an almost unavoidable choice: take on an interest-based mortgage or stay out entirely. The Wahed Real Estate Fund removes that trade-off. It is a professionally managed, zero-debt fund that acquires and manages single-family rental homes across the U.S., distributes potential rental income quarterly, and is certified by an independent Shariah advisory board.
This guide covers how the fund works, what it invests in, how potential distributions and redemptions function, and what you need to know before investing.
What is the Wahed Real Estate Fund?
The Wahed Real Estate Fund is a professionally managed investment fund that provides exposure to a diversified portfolio of single-family residential properties across the United States. It is structured as a Regulation A+ Tier 2 offering within the U.S. securities regulatory framework, and is open to both accredited and non-accredited investors.
Investors purchase shares of the fund. The fund acquires and manages the underlying properties. You are not buying a house, taking on a mortgage, or dealing with tenants. You are investing in a portfolio that does that work on your behalf.
A few things set this fund apart structurally:
- Zero debt at every level. All property acquisitions are 100% equity financed.
- Shariah compliance is certified by the Shariyah Review Bureau (SRB), an independent scholarly body and is continuously monitored by Wahed's internal Shariah team.
- The minimum investment is $100 (10 shares), with no accredited investor requirement.
- The fund targets a $75 million portfolio of single-family homes across the U.S.
Portfolio Composition
The fund focuses exclusively on single-family residential properties in the United States, with each property priced between $300,000 and $1,000,000. Properties are selected based on defined investment criteria, including capitalization rate thresholds and market fundamentals detailed in the Offering Circular.
Initial investments are concentrated in Texas, North Carolina and Michigan. These markets were selected for their strong rental demand, healthy economic fundamentals and long-term growth potential. As the fund scales toward its target size, geographic exposure will expand to broaden the portfolio.
All properties are managed end-to-end by Wahed's investment team, working with licensed professional property managers for day-to-day operations, tenant management, rent collection, and maintenance. Investors have no involvement in any of that.
The fund targets markets with:
- Strong job market fundamentals and diversified employment bases.
- Rental demand that outpaces available housing supply.
- Infrastructure capacity for long-term expansion.
- Property pricing that supports sustainable rental income after expenses.
Investment Strategy
The fund's strategy is built around two potential return sources: quarterly rental income distributions and long-term property appreciation.
Diversification is built into the structure from day one. Because the fund holds multiple properties across different markets, no single vacancy or maintenance event has an outsized effect on overall portfolio performance. As the portfolio grows, that diversification grows further.
The investment team focuses on maintaining high occupancy, reducing tenant turnover and selectively reinvesting in improvements that support long-term value. By consolidating multiple properties within a single fund structure, administrative and operational costs are shared across the whole portfolio rather than charged to individual investors.
The zero-debt structure is also a strategic advantage. Because the fund uses no leverage, there is no pressure from lenders to sell properties in unfavorable market conditions. The fund can hold through market cycles without being forced to liquidate.
View the full investment objectives and strategy in the Offering Circular.
Rental Distributions
The fund aims to distribute rental income to investors on a quarterly basis. When distributed, income is credited directly to investors' bank accounts and is proportionate to each investor's share in the fund.
All potential income is derived from rent paid by tenants on residential properties, after operating expenses such as property management, maintenance, insurance, taxes and HOA fees. There is no interest income in the structure.
A few things to be aware of:
- Your first potential distribution may take up to 120 days from the time of your investment, as properties are acquired and leased into the portfolio.
- If you invest mid-cycle, your first distribution will be prorated based on your investment date.
Liquidity and Redemptions
Real estate is a longer-term asset class by nature. The Wahed Real Estate Fund reflects that with a structured redemption program that gives investors a path to liquidity while protecting the portfolio's long-term stability.
After a six-month initial holding period, investors can request to redeem their shares during semi-annual redemption windows, which open twice a year in July and December. To participate, redemption requests must be submitted at least one month before the window opens.
A tiered fee structure applies based on how long you have held your investment:
Redemptions are processed at the applicable Net Asset Value (NAV) at the time of the window. In each redemption cycle, investors can redeem up to 10% of their own NAV, with requests handled on a first-come, first-served basis.
Capital appreciation is a separate benefit from income distributions. Any growth in underlying property values is reflected in the fund valuation over time, and that gain becomes accessible when you choose to redeem your shares.
For complete redemption terms, review the Offering Circular.
Shariah Governance
The fund's Shariah compliance rests on a single foundational principle: zero debt. Every property is acquired using 100% equity financing. There is no interest paid, no leverage and no lender with a claim on the portfolio at any level.
This matters in context. Most real estate investment structures in the U.S., including many marketed as Shariah-compliant, permit debt-to-asset ratios of 30 to 35 percent. This fund uses none.
Shariah oversight operates at two levels:
- The Shariyah Review Bureau (SRB), an independent international Shariah certification body, has reviewed, certified and continues to monitor the fund. The SRB covers the fund's operations, income sources, financing structure and ongoing compliance with Islamic finance principles.
- Wahed maintains an internal Shariah team of qualified scholars who provide ongoing monitoring and review as the fund acquires new properties and its operations evolve.
All potential returns distributed to investors come from rental income paid by tenants on residential properties. This is asset-backed income with no interest component.
Risk Considerations
Like all investments, the Wahed Real Estate Fund carries risk. Understanding those risks is an important part of making a decision.
Market and Property Value Risk
Property values can fluctuate with broader economic conditions, interest rate changes, and local market dynamics. While U.S. single-family residential real estate has historically appreciated over long periods, past performance is not a guarantee to future results.
Rental Income Variability
Potential distributions depend on properties being occupied and generating rental income. Vacancies, maintenance periods, or higher-than-expected operating costs in any given quarter may affect the amount available for distribution. The fund's multi-property structure is designed to reduce the impact of individual events on overall income.
Liquidity
The fund offers structured liquidity through semi-annual redemption windows from the six-month mark. It is not designed for investors who may need immediate access to their capital. The tiered redemption structure and 10% per-cycle capacity are important to factor into your planning.
Early-Stage Portfolio Concentration
As the fund builds toward its target size, the portfolio will initially be concentrated in a limited number of markets. Geographic diversification increases as the portfolio grows.
For a full list of risk factors, review the risk disclosures and Offering Circular.
Fees and Costs
The Wahed Real Estate Fund has a transparent fee structure with no performance fees or hidden costs.
- Annual management fee: 0.75% of assets under management, charged annually. This covers ongoing operations including property management oversight, portfolio administration, financial reporting, compliance and investor support.
- Sourcing fee: 3% on each property acquisition. This covers the work involved in identifying, underwriting, negotiating and closing on properties that meet the fund's investment criteria.
All fees are fully disclosed in the Offering Circular before you invest.
See the full cost and fee breakdown in the Wahed Real Estate Cost and Fees Guide.
Investor Eligibility
The Wahed Real Estate Fund is open to U.S. residents aged 18 and above, including both accredited and non-accredited investors. A valid U.S. bank account is required for distributions.
Investment limits differ by investor type:
- Accredited investors: No regulatory cap on investment amount. Platform transaction limits may apply.
- Non-accredited investors: Regulation A limits apply. Your total investment across all Reg A offerings may not exceed 10% of your annual income or 10% of your net worth, whichever is greater. The app calculates this limit automatically during onboarding. The limits reset each year.
The maximum investment for any individual investor across the fund is $6,750,000.
At this stage, Wahed Real Estate is only available to U.S. residents. Eligibility for non-U.S. investors may be updated in future.
Getting Started
Investing in the Wahed Real Estate Fund is straightforward and takes place entirely within the Wahed app.
- Download the Wahed app and create your account.
- Select the Real Estate Fund and complete onboarding, including a short suitability questionnaire and investor classification.
- Review the fund documents, including the Offering Circular.
- Choose your investment amount. The minimum is $100.
- Fund your investment through your U.S. bank account.
- Track your investment through your Real Estate dashboard.
Final Thoughts
The Wahed Real Estate Fund is the first of its kind in the United States. Not the first real estate fund, and not the first fund to carry a halal label. The first one was built specifically with the Muslim American investor in mind, from the ground up: zero debt at every level, independent Shariah certification, potential quarterly income from rental properties and a minimum that puts it within reach of the entire community. Every structural decision was made with the ummah's needs at its centre.
Disclosure
This article is for educational and informational purposes only. It does not constitute financial, investment, legal, or religious advice. This investment is speculative, illiquid and involves substantial risk, including the possible loss of your entire investment. Securities are offered through Dalmore Group LLC, Member FINRA/SIPC. Wahed and Dalmore are not affiliates. Investors will be clients of Wahed. An offering statement has been filed with the SEC. SEC qualification does not imply approval or endorsement of the offering’s merits. Please review the full offering circular for complete terms and risks.
Investors are purchasing shares of a Fund and not the underlying asset(s) of the Fund. There is no assurance any Fund will achieve its objectives, is not listed on an exchange and may not be suitable for all investors. Distributions are subject to and are not guaranteed.
As of March 5, 2025, this is the first Shariah-compliant investment fund in the U.S. to offer non-accredited retail investors direct, pooled exposure to a managed portfolio of single-family rental (SFR) properties. This statement reflects our understanding of currently available products and may change as new offerings emerge.
