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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Inside Real Estate: a webinar series hosted by Wahed
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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.

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Glossary
L

Landlord Insurance

An insurance policy for rented homes. It typically bundles buildings cover, landlord liability and optional loss-of-rent. For leasehold flats, the block’s buildings insurance is usually covered via the service charge; the SPV may still hold separate landlord liability or contents cover if needed.

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Lease

A legal agreement that gives a tenant the right to occupy a property for a set time in return for rent. It sets out rights, obligations and notice rules for both parties.

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Lease Agreement

A legally binding contract between a landlord and a tenant outlining rental terms such as duration, rent amount, payment schedule and maintenance responsibilities.

Glossary
L

Lease Term

The length of time a lease runs. In residential tenancies this often means the fixed period of an AST; in long leasehold it is the remaining years on the lease (for example, 120 years).

Glossary
L

Leasehold

A form of ownership where the buyer owns the property for a fixed term under a lease but not the land beneath it. The freeholder owns the land and common parts; the leaseholder pays ground rent where applicable and service charges.

Glossary
L

Leasehold

A form of property ownership where the buyer owns the right to occupy and use the property for a fixed term under a lease but does not own the land. While more common in the UK, leaseholds in the US typically apply to certain condos or ground lease arrangements.

Glossary
L

Legal Pack (Auctions)

A bundle of documents provided before an auction sale, typically including title documents, searches, special conditions, leases and an EPC. Buyers should review or have a solicitor review the pack before bidding.

Glossary
L

Legal Title

The registered ownership of a property as recorded at HM Land Registry. On completion, the SPV is registered as the legal proprietor.

Glossary
L

Legal Title

The official ownership of a property recorded in public land records. Title is transferred at closing and verified by a title company to ensure the property is free from liens or disputes.

Glossary
L

Letter of Intent (LOI)

A short document that records the parties’ intention to proceed on key terms, subject to contract. It is used early in negotiations and is usually not legally binding.

Glossary
L

Letter of Intent (LOI)

A non-binding agreement that outlines the key terms of a potential property purchase before a formal contract is signed. It signals serious interest and helps both parties align on price and conditions before due diligence begins.

Glossary
L

Letting Agent

A professional firm that markets the property, finds tenants, conducts referencing, prepares tenancy documents and can manage rent collection and maintenance.

Glossary
L

Liabilities

Financial obligations owed by a property or business, such as taxes, payables or accrued expenses. In an unleveraged (debt-free) real estate model, liabilities are typically limited to operating costs.

Glossary
L

Limited Liability Company (LLC)

A legal entity commonly used to hold fractional real estate in the US. It protects investors from personal liability, meaning their risk is limited to the amount they invested, while allowing income and losses to pass through for tax purposes.

Glossary
L

Liquidity

Liquidity describes how quickly and easily you can convert an asset into cash without significant price reductions.

Glossary
L

Liquidity

Liquidity describes how quickly and easily you can convert an asset into cash without significant price reductions.

Glossary
L

Listing Price

The advertised price of a property when placed on the market for sale. It may differ from the appraised value or the eventual sale price depending on demand and negotiations.

Glossary
L

Long Stop Date

The latest date by which a sale must be completed. If completion has not happened by the long stop date, the parties may be able to terminate under the contract terms.

Glossary
M

MEES (Minimum Energy Efficiency Standards)

The minimum energy-efficiency standard a rented property must meet, based on its EPC rating. MEES can drive upgrade works and affect letting plans.

Glossary
M

Maintenance

Routine upkeep to keep the property in good condition, such as repainting, servicing appliances or minor repairs.

Glossary
M

Maintenance

Routine and preventive work carried out to keep a property in good condition. This includes repairs, servicing of HVAC systems, painting and upkeep of shared areas.

Glossary
M

Management Fee

The fee paid for running the SPV and managing the property, typically covering admin, reporting, rent collection and oversight. It is taken from rental income before dividends.

Glossary
M

Management Fee

A fee charged by the investment manager for overseeing day-to-day operations, tenant relations and investor reporting. It is taken from rental income before dividends.

Glossary
M

Managing Agent (Property Manager)

The firm appointed to handle lettings and day-to-day management, including tenant onboarding, rent collection and regular maintenance..

Glossary
M

Market Rent

The rent a property could reasonably achieve on the valuation date under usual lease terms, based on comparable evidence. Often referenced as ERV when set by a valuer.

Glossary
M

Market Rent

The amount a property can reasonably earn in rent based on current market conditions and comparable properties in the same area. Market rent may differ from the rent currently charged if leases are outdated or below market value.

Glossary
M

Market Value

The estimated selling price of a property, based on what buyers are willing to pay and what sellers are willing to accept. Used to price deals and assess performance at exit.

Glossary
M

Market Value

The estimated selling price of a property, based on what buyers are willing to pay and what sellers are willing to accept. Used to price deals and assess performance at exit.

Glossary
M

Material Facts

Information that could influence a buyer’s or investor’s decision to purchase a property. US law requires that sellers and managers disclose material facts such as structural defects, known hazards or legal disputes.

Glossary
M

Memorandum of Sale

An estate agent document that records the agreed price and the parties’ details once an offer is accepted.

Glossary
M

Mortgage-Free (Unleveraged)

Owning a property outright without any debt or mortgage.

Glossary
M

Mudarabah

A profit-sharing partnership where one party (the investor or Rab-ul-Maal) supplies the funds while the other party (the entrepreneur or Mudarib) manages the investment, with profits shared according to a pre-agreed ratio.

Glossary
M

Mudarabah

A profit-sharing partnership where one party (the investor or Rab-ul-Maal) supplies the funds while the other party (the entrepreneur or Mudarib) manages the investment, with profits shared according to a pre-agreed ratio.

Glossary
M

Multi-Family Property

A residential building with multiple separate living units, such as an apartment complex or duplex.

Glossary
M

Murabaha

Murabaha is an Islamic finance contract where a financing party buys an asset and then sells it to a client at a pre-agreed price plus a profit markup, allowing the client to pay in installments over time without interest.

Glossary
M

Murabaha

Murabaha is an Islamic finance contract where a financing party buys an asset and then sells it to a client at a pre-agreed price plus a profit markup, allowing the client to pay in installments over time without interest.

Glossary
M

Musharakah

An equity partnership where all partners contribute capital to a joint venture and share both the profits and losses according to a pre-agreed ratio.

Glossary
M

Musharakah

An equity partnership where all partners contribute capital to a joint venture and share both the profits and losses according to a pre-agreed ratio.

Glossary
N

NAV (Net Asset Value)

The total value of an LLC’s assets minus its liabilities, divided by the number of investor shares. NAV reflects the current underlying value of each investor’s ownership in the property and is updated periodically based on appraisals and performance.

Glossary
N

Net Asset Value (NAV)

Assets minus liabilities of the SPV. NAV per share is NAV divided by the number of shares and is a simple reference point for the share value. Example: assets £510,000, liabilities £10,000 → NAV £500,000. With 100,000 shares, NAV per share = £5.00.

Glossary
N

Net Operating Income (NOI)

Annual income from the property after operating expenses, before tax and any financing. In our zero-debt model, NOI closely tracks the cash available for dividends and reserves.

Glossary
N

Net Operating Income (NOI)

Annual income from the property after operating expenses, before tax and any financing. In our zero-debt model, NOI closely tracks the cash available for dividends and reserves.

Glossary
N

Net Present Value (NPV)

A financial measure used to determine the value of an investment by calculating the present value of future cash flows, discounted at a chosen rate. A positive NPV indicates that an investment is expected to be profitable over time.

Glossary
N

Net Rent

Rent left after subtracting all operating costs for the period, such as management, service charge, insurance and routine maintenance. For example, if the property rents for £2,000 per month (£24,000 a year) and annual expenses total £6,000, the net rent is £18,000 for the year.

Glossary
N

Net Yield

The annual percentage return that the investment generates after all expenses are deducted. For example, The property is priced at £300,000. If gross rent is £24,000 a year and expenses are £6,000, net rent is £18,000. Net yield = 18,000 ÷ 300,000 = 6%.

Glossary
N

Net Yield

The annual percentage return a property generates after all expenses are deducted from rental income. Example: The property is priced at $300,000. If gross rent is $24,000 a year and expenses are $6,000, net rent is $18,000. Net yield = 18,000 ÷ 300,000 = 6%.

Glossary
N

Nominal Value (Par Value)

The face value of a share set in the company’s constitution, used for accounting and share issuance. It is different from a share’s market value.

Glossary
N

Non-Accredited Investor

An investor who does not meet the SEC’s accredited investor thresholds but can still participate in certain regulated offerings such as Regulation A. Limits apply to how much can be invested each year based on income and net worth.

Glossary
N

Notarization

The official process of verifying the authenticity of signatures on legal documents, such as deeds or operating agreements.

Glossary
N

Notice Period (Lease)

The amount of time required for either landlord or tenant to give notice before ending or renewing a lease.

Glossary
N

Notice Period (Tenancy)

The amount of notice that landlord or tenant must give to end a tenancy, as set by law and the tenancy agreement. Notice rules differ by route to possession and circumstances.

Glossary
N

Notice to Complete

A formal notice served when one party is ready to complete a purchase and the other delays. It requires completion within a set period under the contract terms.

Glossary
O

Occupancy Rate

The share of time a property is rented in a period. Example: if the property is occupied for 11 of 12 months, the occupancy rate would be 91.7%. Higher occupancy supports steadier cash flow.

Glossary
O

Occupancy Rate

The share of time a property is rented in a period. Example: if the property is occupied for 11 of 12 months, the occupancy rate would be 91.7%. Higher occupancy supports steadier cash flow.

Glossary
O

Offer Document

A formal disclosure provided to potential investors outlining key property details, investment structure, financials, risks and fees. In the US, this is referred to as an Offering Circular under SEC Regulation A, which must be filed and qualified before public investment can begin.

Glossary
O

Offer period

The window in which investors can subscribe for shares in a deal before the raise closes or reaches its funding target.

Glossary
O

Onboarding

The process investors complete before investing: create an account, verify your identity (KYC), pass the appropriateness questionnaire and wait 24 hours. Once done, you can invest in real estate.

Glossary
O

Operating Agreement

The governing document for a Limited Liability Company (LLC) that defines the rights and responsibilities of members, voting powers, profit distribution and management duties.

Glossary
O

Operating Expense Ratio

Operating expenses divided by gross rent, shown as a percentage. It explains the movement from gross rent to net rent. Example: £6,000 expenses on £24,000 gross rent = 25%.

Glossary
O

Operating Expenses

The costs of running the property and SPV, such as management fees, service charges, insurance, ground rent, routine maintenance and council tax during voids. Net rent equals gross rent minus these costs.

Glossary
O

Operating Expenses

The recurring costs involved in running a property, including property taxes, insurance, repairs, utilities, management fees and HOA dues. These are deducted from rental income to calculate Net Operating Income (NOI).

Glossary
O

Opportunity Zone

A designated area identified by the US government to encourage long-term investment and economic development through tax incentives. Investors may defer or reduce capital gains taxes by investing in qualified Opportunity Zone funds or properties.

Glossary
O

Option to Renew (Lease)

A clause that gives tenants the right to extend their lease for an additional term under specified conditions. Renewal options help maintain occupancy and rental income stability.

Glossary
P

Passive Income

Earnings generated from investments that require minimal day-to-day involvement.

Glossary
P

Periodic Tenancy

A rolling tenancy that continues after a fixed term ends, usually month-to-month, until either party gives notice.

Glossary
P

Planning Permission

Formal consent from the local planning authority to build, extend or change a property’s use. Some works need both planning permission and Building Regulations approval.

Glossary
P

Portfolio

A collection of property investments held by an investor. Diversifying a portfolio across locations or unit types can help spread risk.

Glossary
P

Portfolio

A collection of property investments held by an investor. Diversifying a portfolio across locations or unit types can help spread risk.

Glossary
P

Pre-Tax Return

The total return earned from an investment before accounting for any taxes on rental income or capital gains. It provides a standard basis for comparing investment opportunities across different regions or structures.

Glossary
P

Prime Location

A highly desirable area characterized by strong demand, good connectivity, local amenities and consistent property value growth.

Glossary
P

Pro Forma

A financial projection that estimates a property’s future income, expenses and returns. Pro formas are used to model expected performance and help investors assess potential returns before investing.

Glossary
P

Pro Rata

Proportional to the number of shares held. For example, if you own 2% of the shares in an SPV, you’d receive 2% of the net rental income and 2% of the exit proceeds after all costs and fees.

Glossary
P

Pro Rata

A method of allocation based on each investor’s proportional ownership. For example, an investor holding 2% of an LLC will receive 2% of all distributions and profits.

Glossary
P

Profit and Loss (P&L)

A financial statement that summarizes the revenues, expenses and net income generated over a given period. It helps evaluate a property’s profitability and performance.

Glossary
P

PropTech

PropTech covers tech solutions like VR viewings and AI pricing tools to smart-home systems that transform how we buy, sell and manage property with digital tools.

Glossary
P

Property Manager

A professional or company responsible for managing a property’s day-to-day operations, including tenant relations, rent collection, maintenance and compliance with local regulations.

Glossary
P

Property Taxes

Recurring taxes levied by local governments based on the assessed value of a property. These taxes fund public services such as schools, roads, and emergency services and are a standard operating expense in the US real estate.

Glossary
P

Purchase Agreement

A legally binding contract outlining the terms and conditions of a property sale between buyer and seller, including price, contingencies and closing timeline.

Glossary
P

Purchase Price

The agreed amount paid to acquire the property, not including any acquisition costs such as SDLT, legal fees, surveys and any buyer’s premium.

Glossary
P

Purchase Price

The agreed-upon amount paid to acquire a property, excluding additional costs such as taxes, title fees and closing expenses.

Glossary
Q

Qard al-Hasan

An Islamic finance term for an interest-free loan. In a qard al-hasan transaction, the borrower repays the principal amount of the loan without any interest or markup.

Glossary
Q

Qard al-Hasan

An Islamic finance term for an interest-free loan. In a qard al-hasan transaction, the borrower repays the principal amount of the loan without any interest or markup.

Glossary
Q

Qualified Opportunity Fund (QOF)

An investment vehicle that allows investors to reinvest capital gains into properties or businesses located in federally designated Opportunity Zones. In return, investors may receive tax deferrals and potential reductions on capital gains under the US tax code.

Glossary
Q

Qualified Purchaser

An investor category under US securities law that meets a higher financial threshold than an accredited investor. Generally, individuals or entities with at least $5 million in investable assets qualify. This status grants access to certain private investment opportunities not available to the general public.

Glossary
Q

Quarterly Distributions

Payments made to investors every three months from the property’s net rental income after deducting expenses and management fees.

Glossary
Q

Quiet Enjoyment (Lease Term)

A legal right ensuring that tenants can occupy and use their rented property without interference, provided they comply with the terms of the lease.

Glossary
Q

Quitclaim Deed

A type of deed used to transfer ownership interest in a property without guaranteeing that the title is free from defects. It is often used between family members or to clear up title issues, rather than for standard property sales.

Glossary
Q

Quote

A written price offer for a job from a contractor. It states what work will be done, how much it will cost (often fixed for a set period) and any key conditions.

Glossary
R

REIT (Real Estate Investment Trust)

REITs are publicly traded companies that own and manage income-producing properties, distributing most profits as dividends. Investing in REITs gives you liquid exposure to real estate.

Glossary
R

RESPA (Real Estate Settlement Procedures Act)

A US federal law requiring lenders and settlement agents to provide full disclosure of all closing costs and prohibiting kickbacks in real estate transactions. It ensures transparency and consumer protection during the closing process.

Glossary
R

RICS (Royal Institution of Chartered Surveyors)

The UK professional body for surveyors and valuers. A RICS valuer provides independent valuations used for purchase or review.

Glossary
R

Real Estate Investment Trust (REIT)

REITs are publicly traded companies that own and manage income-producing properties, distributing most profits as dividends. Investing in REITs gives you liquid exposure to real estate.

Glossary
R

Real Estate Transfer Tax

A state or local tax paid when property ownership is transferred from one party to another. Rates vary by location and are typically paid at closing as part of total acquisition costs.

Glossary
R

Recourse

The legal right of a lender or investor to claim the borrower’s personal assets if a loan or financial obligation is not repaid. In unleveraged real estate models like Wahed’s, investments are structured without debt and therefore have no recourse risk for investors.

Glossary
R

Refurbishment

Works that improve or upgrade a property beyond routine repairs (for example, a new kitchen or bathroom). Refurbishment is capex and can affect rent and value.

Glossary
R

Regulation A (Reg A)

An SEC exemption that allows qualified companies to raise up to $75 million from the public each year with lighter disclosure requirements than a traditional IPO.

Glossary
R

Regulation CF (Reg Crowdfunding)

An SEC regulation that allows companies to raise up to $5 million annually from the public through approved crowdfunding portals. Investors are subject to limits based on income and net worth.

Glossary
R

Regulation D (Reg D)

An SEC framework that governs private placements to accredited investors. Reg D offerings do not require SEC qualification but are limited to specific investor types and fundraising caps.

Glossary
R

Rent Review

A change to the rent during or at the end of a term, as allowed by the tenancy agreement or law. In standard ASTs this usually happens by agreement or a statutory notice.

Glossary
R

Rental Guarantee Agreement

A contract where the developer, seller or a third party guarantees the SPV will receive a set level of rent for a defined period, topping up any shortfall or covering voids up to the agreed amount.

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