Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

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Ali Ahmed
Real Estate Acquisitions
Safdar Alam
Director of Wahed Ventures
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Webinar
7th August 2025
Introduction to Wahed Real Estate:

Real Estate without Debt

An overview of fractional real estate investing with Wahed, focusing on our 0 debt, equity-based model. The session walked through the full investment journey from onboarding to property selection, with a live example of how to review deals in the app, followed by a Q&A.

Content will be updated soon!
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Glossary
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Rental Income

The money received from tenants occupying a property. In fractional real estate, net rental income (after expenses) is distributed to investors as quarterly or annual dividends.

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Rental Yield

Rental yield shows the income return on a property, calculated by dividing annual rent by the purchase price and expressing it as a percentage. It gives a quick snapshot of how much cash flow you can expect before expenses.

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Rental Yield

Rental yield shows the income return on a property, calculated by dividing annual rent by the purchase price and expressing it as a percentage. It gives a quick snapshot of how much cash flow you can expect before expenses.

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Repairs

Routine fixes to keep a property in working order, such as replacing a faulty tap or repainting scuffed walls.

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Repairs

Routine fixes to keep a property in working order, such as replacing a faulty tap or repainting scuffed walls.

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Reserve Fund

Cash set aside from rental income for future costs, such as major repairs or short voids. Building reserves can smooth dividends.

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Reserve Fund

Cash set aside from rental income for future costs, such as major repairs or short voids. Building reserves can smooth dividends.

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Return of Capital

The repayment of your original investment amount, typically at exit when the property is sold and proceeds are distributed.

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Return on Investment (ROI)

How much you actually earn on your investment overall. It’s shown as a percentage: ROI = total profit ÷ amount invested (where profit is net rent received plus any net gain at sale). Example: if you invest £1,000 and get £1,300 back in total → profit £300 → ROI 30%.

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Return on Investment (ROI)

How much you actually earn on your investment overall. It’s shown as a percentage: ROI = total profit ÷ amount invested (where profit is net rent received plus any net gain at sale). Example: if you invest $1,000 and get $1,300 back in total → profit $300 → ROI 30%.

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Riba (Interest)

An Arabic word with literal meanings of “increase” or “excess” and is roughly translated as usury or interest. Any form of riba is strictly prohibited under Shariah law.

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Riba (Interest)

An Arabic word with literal meanings of “increase” or “excess” and is roughly translated as usury or interest. Any form of riba is strictly prohibited under Shariah (Islamic) law.

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Risk Disclosure

A statement explaining the potential risks associated with investing, such as market volatility, illiquidity, or changes in property value. Under SEC regulations, all investment platforms must provide a detailed risk disclosure before funds are accepted.

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SEC (Securities and Exchange Commission)

The government agency responsible for regulating securities markets and protecting investors. The SEC oversees Regulation A, Regulation D and other exemptions used in fractional real estate offerings.

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SPV (Special Purpose Vehicle)

A dedicated company set up to own a specific property. Investors buy shares in the SPV rather than the property itself, and their shareholding sets what they receive from rent (as dividends) and from the sale at exit.

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Sale Price

The amount the property sells for at exit. It is used to calculate capital appreciation and exit proceeds.

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Schedule K-1

A tax form issued annually by Limited Liability Companies (LLCs) to report each investor’s share of income, deductions and credits. Fractional real estate investors use the Schedule K-1 to report their portion of income to the IRS.

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Searches (Conveyancing Searches)

Legal checks carried out before purchase, typically local authority, water and drainage and environmental searches. Results can affect pricing, insurance and timing.

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Secondary Market

A facility to sell or buy shares after the initial raise. If there is no secondary market, investors usually hold shares until exit.

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Secondary Market

A platform where investors can resell their shares in a property’s LLC after the initial offering. If there is no secondary market, investors usually hold shares until exit.

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Security Deposit

An amount paid by a tenant before moving into a property, held by the landlord or property manager as protection against damage or unpaid rent. The deposit is refundable if the tenant meets all lease conditions.

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Sensitivity Analysis

Testing how returns change when key inputs move, for example lower rent, higher expenses or a different exit price. It helps investors understand best-, base- and downside cases.

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Service Charge

Payments for the upkeep of shared parts and services in a block or estate, for example cleaning, insurance and maintenance. For leasehold flats, the SPV pays the service charge as an operating cost.

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Service Providers

Third-party firms or professionals involved in managing or supporting a property or investment. Examples include property managers, accountants, title companies, attorneys and maintenance vendors.

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Shariah Certificate

A document confirming that a product or structure complies with Shariah after review by qualified scholars.

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Shariah Certificate

A document confirming that a product or structure complies with Shariah after review by qualified scholars.

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Shariah Compliant

An investment structured in accordance with Islamic law, following permitted principles and avoiding prohibited elements such as interest and gambling.

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Shariah Review Bureau (SRB)

A panel of qualified Islamic scholars that reviews and certifies investment offerings for compliance with Shariah principles. The SRB defines screening criteria, approves permissible structures and provides continuous oversight.

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Shariah Supervisory Board (SSB)

An independent panel of qualified Shariah scholars that reviews products, contracts and governance frameworks for compliance with Shariah principles. They define screening criteria, approve permissible structures and provide continuous oversight.

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Shariah-Compliant

An investment structured in accordance with Islamic law, following permitted principles and avoiding prohibited elements such as interest and gambling.

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Single Let

A tenancy of the whole property to one household under a single agreement. Council tax is usually paid by the tenant in a standard single let.

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Single-Family Property

A standalone residential home designed to house one family.

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Stamp Duty Land Tax (SDLT)

A tax payable when buying property in England and Northern Ireland. The SPV pays SDLT on purchase; rates and bands depend on the transaction and are set by HMRC.

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Sublease

An arrangement where a tenant rents out part or all of their leased property to another party (the subtenant), while still retaining responsibility under the original lease agreement.

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Subletting

When a tenant rents the whole home or a room to someone else. In most ASTs this is not allowed without the landlord’s prior written consent.

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Subscription Agreement

A legal document through which an investor agrees to purchase shares in a property LLC. It outlines investment amount, terms, representations and acknowledgment of risks.

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Sukuk (Islamic Bonds)

A Shariah-compliant investment instrument representing ownership in an underlying asset or project. Sukuk returns are generated from asset performance rather than interest payments.

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Survey

An independent inspection of a property’s condition by a qualified surveyor. It checks structure, damp, roof, windows and services and flags defects or urgent repairs. The report informs pricing, maintenance planning and insurance.

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Takaful (Islamic insurance)

A cooperative form of insurance designed to comply with Shariah, where participants share risk and any surplus. Used conceptually as the ethical alternative to conventional insurance.

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Takaful (Islamic insurance)

A cooperative form of insurance designed to comply with Shariah, where participants share risk and any surplus. Used conceptually as the ethical alternative to conventional insurance.

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Target Dividend

The platform’s expected annual cash distribution from net rent. It is a projection, not a guarantee, and can change with occupancy and costs.

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Target Exit Date

The planned date to sell the property and distribute proceeds. Actual timing can vary with market and asset conditions.

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Target Exit Date

The planned date to sell the property and distribute proceeds. Actual timing can vary with market and asset conditions.

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Target Net Yield

The projected net yield at acquisition, calculated as annual net rent ÷ total acquisition cost, shown as a percentage. It is an estimate based on underwriting.

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Tax-Deferred Exchange

Another term for a 1031 Exchange, which allows investors to sell one investment property and reinvest the proceeds into another similar property without immediately paying capital gains tax, provided IRS requirements are met.

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Tenancy

The legal right to occupy a property under a lease agreement.

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Tenancy Agreement

The contract between landlord and tenant that sets rent, term and obligations. For most residential lets in England, this is an AST.

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Tenancy Deposit

Money held as security against damage or unpaid rent. In England and Wales, deposits must be protected in an approved scheme and returned at the end of the tenancy minus agreed deductions.

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Tenancy in Common (TIC)

A form of joint property ownership where multiple parties hold shares that can be unequal and independently transferable.

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Tenant

A tenant is someone who rents and occupies a property under the terms of a lease or tenancy agreement. Tenants have rights to a safe, habitable home and must pay rent on time, while respecting any rules set out in their lease.

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Tenant

A tenant is someone who rents and occupies a property under the terms of a lease or tenancy agreement. Tenants have rights to a safe, habitable home and must pay rent on time, while respecting any rules set out in their lease.

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Tenant Referencing

Tenant referencing involves checking a prospective tenant’s income, credit history, and rental background to assess reliability. Agents must handle personal data in compliance with GDPR.

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Term (Tenancy Term)

The length of the tenancy. Often six to twelve months fixed, then periodic unless renewed.

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Term Sheet

A short document that records the key commercial terms of a proposed transaction or partnership before final contracts are drafted.

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Title

The legal record of ownership for a property. Title confirms who owns the asset and outlines any liens, easements or restrictions affecting it. It is verified during due diligence and officially transferred to the LLC at closing.

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Title Deeds

Title deeds are the documents that prove your legal ownership of a property and outline any rights or restrictions affecting it. They are registered at the Land Registry and form the basis of your conveyancing.

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Title Insurance

An insurance policy that protects the property owner and lender from potential losses due to defects or disputes in the property’s title.

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Title Register

HM Land Registry’s official record of ownership and rights affecting a property.

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Total Return

How much you earn overall on your investment over the whole holding period. It adds up every rental distribution paid to you during the hold (for example, quarterly over five years) plus your share of the net sale proceeds at exit. Expressed as a percentage: total return (%) = (total value − amount invested) ÷ amount invested.

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Total Return

How much you earn overall on your investment over the whole holding period. It adds up every rental distribution paid to you during the hold (for example, quarterly over five years) plus your share of the net gain at sale). Example: if you invest $1,000 and get $1,300 back in total → profit $300 → ROI 30%.

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Transaction Costs

The costs of entering and exiting a deal. Buying costs include SDLT, legal fees, surveys and any buyer’s premium; selling costs include agent and legal fees.

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Transfer Tax

A state or local tax charged when a property’s ownership is transferred.

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Transfer of Shares

Moving shares from one holder to another, recorded in the company’s register and subject to any restrictions in the SPV’s articles.

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Trust Account

A separate account used by escrow agents, brokers or property managers to hold client or investor funds securely until disbursed. Trust accounts ensure segregation of funds in line with regulatory standards.

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Turnkey Property

A fully renovated, income-generating property that is ready for immediate rental or investment. Investors can begin earning rental income immediately after acquisition, with minimal management involvement required.

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US GAAP (Generally Accepted Accounting Principles)

The accounting framework used in the United States for preparing financial statements. Fractional real estate LLCs typically follow US GAAP standards when reporting income, expenses and investor returns.

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Under Offer

An estate-agency status meaning the seller has accepted an offer subject to contract. The sale is not binding until exchange.

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Underwriting

The analysis used to judge a deal’s viability and set assumptions for rent, costs, voids, capex and exit price. Underwriting produces targets such as net yield, dividend range and total return, plus sensitivities.

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Underwriting (Property)

The process of evaluating a property’s financials, condition and market potential before approving it for investment. Underwriting includes reviewing rental income, expenses, comparable sales and tenant stability to ensure the deal meets performance and risk standards.

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Unencumbered

A property with no mortgage, charge or lien registered against it. In our model, assets are acquired unencumbered and held with zero debt.

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Unexpired Lease Term

The years left on a long lease (for example, 118 years remaining). Shorter remaining terms can reduce value and increase future costs, so this is reviewed during due diligence.

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Uniform Commercial Code (UCC)

A standardized set of laws governing commercial transactions in the US. In real estate, UCC filings may be used to record security interests in personal property or fixtures that are part of a larger transaction.

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Unit

In fractional real estate, a “unit” refers to the ownership share an investor holds in a property’s LLC.

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Unrealized Gain (or Loss)

The increase or decrease in a property’s market value before it has been sold. Gains or losses remain “unrealized” until the property is sold and the value change is finalized.

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Urban Development

The planning and improvement of city areas through construction, infrastructure and housing projects. Urban development influences long-term property appreciation and rental demand.

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Utilities

Essential services such as gas, electricity, water and broadband. In a standard single-let, tenants usually pay; the SPV covers utilities during voids or where contracts require it (for example, some HMOs).

Glossary
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Vacancy / Void Period

A void period is the time when a rental property is unoccupied and generating no income because tenants have moved out or before new tenants move in.

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Vacancy / Void Period

A void period is the time when a rental property is unoccupied and generating no income because tenants have moved out or before new tenants move in.

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Vacancy Rate

The percentage of total rental units in a property that are unoccupied during a specific period.

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Valuation

An independent assessment of a property’s fair market value, typically conducted by a licensed appraiser.

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Valuation (RICS Valuation)

An independent assessment of market value by a qualified valuer to professional standards. Used to price acquisitions and to check value at review or exit.

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Valuation Report

The written report from the valuer that sets out the method, comparable evidence, assumptions and the concluded market value.

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Value Uplift

The increase in value created by improvements, lease changes or planning gains, over and above normal market movement.

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Variable Expenses

Costs that fluctuate depending on property usage or occupancy, such as utilities, repairs and maintenance. These differ from fixed expenses like insurance or property taxes, which remain consistent.

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Vendor

The seller of the property.

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Vendor’s Solicitor

The law firm acting on behalf of the seller in the transaction.

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Verification (KYC/AML)

The process of confirming an investor’s identity, residency and source of funds to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

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Verification of Identity (VOI)

Checks a conveyancer carries out to confirm a party’s identity before a property transfer.

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Void Allowance

A budget assumption for expected vacancy.

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Volatility

The degree to which the value of an asset or market fluctuates over time.

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W-9 Form

An IRS form used to collect a US investor’s taxpayer identification number (TIN) or Social Security Number (SSN).

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Waitlist

A list you join to be first notified when a new deal launches so you can invest as soon as it goes live.

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Waitlist

A list you join to get early access to new property deals so you can invest as soon as it goes live.

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Walkthrough

A final inspection to confirm the property’s condition, fixtures and any agreed works before completion or tenant move-in.

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Warranty (Structural / New-Build)

A builder or insurer guarantee that covers major structural defects for a set period (often 10 years). Useful for managing build risk and future capex.

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Warranty Deed

A legal document used for property transfers that guarantees the seller holds clear title and has the right to sell. It protects the buyer against any future claims or disputes over ownership.

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Wear and Tear

Normal deterioration from everyday use, not tenant damage. Deposits cannot be deducted for fair wear and tear.

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Wear and Tear

Normal deterioration from everyday use, not tenant damage. Deposits cannot be deducted for fair wear and tear.

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White Goods

Large household appliances provided with a rental (for example, fridge-freezer, washing machine). Listed in the inventory for handover and deposit purposes.

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Winding Up (SPV Closure)

Closing the SPV after the property is sold and proceeds are distributed. Includes final accounts, paying any liabilities, and striking off the company.

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