Key Takeways:
This guide explains the costs included in Wahed Real Estate investments and how they affect income and returns.
When you invest with Wahed Real Estate, you purchase shares in an investment structure rather than investing directly in a specific property. Because each investment must be sourced, structured, administered and maintained, certain operational expenses exist.
These costs are not charged separately after you invest. They are already accounted for when calculating income and performance.
Private Real Estate and the Real Estate Fund operate differently, so their cost structures differ as well.
What Makes Up Your Total Investment
When you invest through Wahed Real Estate, you purchase shares in an entity holding real estate assets. Your investment amount covers purchase of those assets plus the legal, regulatory and operational costs required to prepare and manage them.
Costs fall into three categories:
- Entry (acquisition and structuring)
- Ongoing operation & Asset Management
- Administration & Governance
- Exit or redemption
Private Real Estate Costs
Upfront Property Setup and Transaction Costs
These are one-time costs incurred to acquire and prepare a specific property. They’re included within the total funding amount and you don’t pay them separately.
These costs cover the full cycle of property preparation from sourcing and due diligence to ready-for-rental status.
Note: The percentages shown above represent average estimates. Actual fees and costs may vary depending on, but are not limited to, specific property, market conditions, and transaction structure.
Ongoing Property and Management Costs During the Holding Period
Once the property is operational, routine costs are deducted from rental income before any distributions are made to investors. This ensures the property remains maintained and compliant throughout its holding period.
Wahed Fee
Wahed charges an ongoing 1% annual management fee at the Series level for Private Real Estate investments.
The management fee covers the ongoing operation and administration of the investment, including:
- Entity administration – formation and maintenance of the Series LLC holding the property
- Legal oversight – review and monitoring of property agreements and contracts
- Investment monitoring – tracking property performance, leases and distributions
- Regulatory compliance – SEC Regulation A filings, KYC/AML and broker-dealer coordination
- Shariah governance – ongoing review by Wahed’s Shariah team under the supervision and oversight of the Shariah Supervisory Board
- Investor reporting – communications, statements and recordkeeping
- Operational oversight – coordination with property managers and service providers
- Platform infrastructure – systems used to administer and manage investments
Exit Costs (When the Property Is Sold)
Private Real Estate investments do not offer early liquidity. Investors exit when the property is sold and receive proceeds after transaction costs.
Note: The percentages shown above represent average estimates. Actual fees and costs may vary depending on the specific property, market conditions, and transaction structure.
Real Estate Fund Costs
The Real Estate Fund operates differently from individual property investments.
Instead of investing into one specific asset, you invest into a portfolio of properties managed collectively.
Because assets are held and operated together, costs are applied at the portfolio level and reflected in the fund’s value rather than attributed to a single property.
Costs follow the same stages as other investments: entry, ongoing operation and exit
Upfront Portfolio Setup and Acquisition Costs
These are one-time costs incurred when properties are sourced and added to the fund portfolio.
Ongoing Fund Operating Costs
These costs support operating and maintaining the portfolio and are accounted for before distributions.
Because multiple properties are held together, individual asset costs are diversified across the portfolio rather than affecting a single investment.
Wahed Fee
Wahed charges an ongoing 0.75% annual management fee for the Real Estate Fund.
This covers portfolio oversight, administration, regulatory compliance and investor servicing. The fee forms part of the fund’s operating costs.
Redemption and Exit Costs
Unlike Private Real Estate, the fund does not rely on selling a specific property for investors to exit.
Instead, investors may request withdrawals during scheduled redemption windows.
Redemptions are subject to available liquidity and are processed according to the fund terms disclosed before investing.
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Yes. All structures and fees are reviewed by Wahed’s internal Shariah team under the supervision of its Shariah Supervisory Board.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
Reminder, all costs are reflected in investment performance and are not charged separately after you invest.
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Yes. All structures and fees are reviewed by Wahed’s internal Shariah team under the supervision of its Shariah Supervisory Board.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
How Fees and Costs Affect Your Returns
Income generated by the investment is first used to pay fees, operating expenses and reserves. The remaining amount becomes distributable income.
Returns therefore depend on:
- Net income after fees and expenses
- Capital expenditures and reserve requirements
- Changes in property or portfolio value at exit or redemption
We do not publish performance projections. Actual returns vary based on market conditions and asset performance.
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Yes. All structures and fees are reviewed by Wahed’s internal Shariah team under the supervision of its Shariah Supervisory Board.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
Why Costs May Vary
Expenses may vary depending on factors such as property location, asset type, market conditions, regulatory requirements and ongoing operating needs.
All expected costs are disclosed within offering documents before investing.
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Yes. All structures and fees are reviewed by Wahed’s internal Shariah team under the supervision of its Shariah Supervisory Board.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
Frequently Asked Questions
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
No. All costs are disclosed and built into the investment structure.
No separate platform fee is charged. The Wahed management fee covers administration, oversight and reporting.
No. Private Real Estate depends on the specific property. The Real Estate Fund depends on portfolio operations.
All income figures are calculated after deducting expenses, fees and taxes. Any amount distributed to investors represents net income, not gross.
Yes. All structures and fees are reviewed by Wahed’s internal Shariah team under the supervision of its Shariah Supervisory Board.
Only if affected by changes in external operating costs such as tax adjustments, insurance premiums, or regulator or market driven adjustments. Material updates will be communicated to investors.
