Education

Investors asked us for a way to own rental real estate without mortgages or the work of managing tenants. Some families, including Muslims who avoid interest-based debt, especially value this approach. Our team has about ten years of experience, currently manages more than 90 rental units, and manages a predecessor fund of about $2 million. Our affiliated brokerage has handled more than $1 billion in transactions. These are the team’s and affiliated businesses’ figures; FIF itself is new.

We bring buying, construction, repairs, and property management together in one local platform. That is what “vertically integrated” means: the people choosing the homes can work closely with the people caring for them. Our goal is competitive cash flow from rent after real expenses. Home values may rise too, but net rent is the foundation of the plan. Returns are not guaranteed.

You buy a share of a fund that plans to own rental properties. Think of it as a shared basket of properties. The team chooses and runs the properties using its on-the-ground knowledge of Metro Detroit. Most purchases are planned for that area because it is where the general partners have local experience. You own a piece of the fund, which owns the properties, rather than holding the deed to one house yourself.

The fund is preparing for launch and property purchases. The plan allows FIF to buy homes on or off the market and, where appropriate, homes from a related Fajr business. We can share the latest acquisition status, including which homes have closed and which are still being considered. Properties managed by our existing businesses are not automatically owned by FIF.

You do not need to live near the homes. We can consider investors across the U.S. and internationally, subject to eligibility and the rules where they live. The current offering uses Rule 506(c), so investors joining through it must be verified as accredited. Overseas investors can contact us to confirm the available route; any separate offshore offering would need its own eligibility review. Your tax adviser can help with U.S. and home-country tax filings and any tax withheld from payments.

This is the market our team knows street by street. We believe the combination of affordable homes, rental demand, and local reinvestment offers room for attractive net rental income and possible growth in value. Detroit city covers about 139 square miles of land, with neighborhoods at very different stages of renewal. We choose individual homes and blocks carefully; a citywide recovery does not make every property a good buy.

There are encouraging signs. Census estimates show Detroit city added about 5,000 residents in 2025, and the city reports continued housing investment. Its finances have also improved since bankruptcy, with further credit-rating upgrades in 2026. Census 2020–2024 figures put the median value of an owner-occupied home in Detroit city at $83,900, compared with $332,700 nationally. These are historical home-value estimates, not current sale prices or figures for all of metro Detroit. We see potential here, but faster growth than other markets is a belief, not a promised result.

We look at the full cost to buy and get a home ready, then ask how much rent might be left after taxes, insurance, a property manager, repairs, empty months, security, and other fund costs. One screen we aim for is around 10% a year in cash left on the total money put into the home. It is a buying test, not a promised investor return. Here is a simple example.

If the $75,000 is only the purchase price and closing or repairs cost more, the total cost rises and the return falls unless rent or other costs improve. Each real home gets its own numbers. Cash distributed to investors also depends on fund results and the fund agreement.

The usual minimum is $50,000; smaller amounts need the fund manager’s approval. Buyers must meet an investor eligibility standard called accreditation. It looks at income, net worth, or certain licenses. The fund must check that status as part of the joining process, and we can explain the steps.

It gives you first place for a share of money the fund can pay out. It is called a preferred return. Eight percent of $100,000 is $8,000 for a full year, or $2,000 for a quarter, in simple math. Investors receive this share before the GP receives rental profits, subject to cash being available.

This table ignores other investors and fees to show the idea. The unpaid amount does not earn extra interest.

Nabil and Faseh lead the fund. GP means the team running it; LP means an investor. Property managers, a brokerage, and a title company may also provide services and earn fees. Related businesses and their fees are disclosed in the PPM, the detailed offering document, and their service agreements set out the work they must perform.

The GP earns a management fee of 1% a year on contributed investor capital, paid quarterly. For $1 million contributed, that is $10,000 a year, or $2,500 a quarter. Separate property and transaction service fees are additional costs. For rental profits, investors come first: after all costs, fees, and reserves, the fund pays their 8% annual preferred return, including any unpaid amount from earlier periods. The GP receives the remaining rental profit. Eight percent a year is 2% for a full quarter in simple math. If less than that is available, the GP receives no rental profit share that quarter.

Our current operating plan targets January 2027 for launch, roughly 90 days to put capital into homes, and a first payment around June 2027 if enough cash is available. For someone investing in January, that means planning for roughly six months before the first check. It is a target, not a fixed six-month promise for every investor.

The timing for earning the preferred return is separate. The current offering package lists December 1, 2026 as fund commencement and March 1, 2027 as the date the preference starts for money received and accepted by then. Later investments have an adjustment rule. Any revised dates must appear in the updated fund documents. Cash payments depend on the money available.

A tenant pays rent. The fund then pays bills such as taxes, insurance, repairs, management, and other fund costs, and may hold money back for future bills. Only the money left can be considered for investor payments.

Illustrative numbers to show the steps; each home has its own budget.

The plan is to hold the homes for about five years from the first purchase. Toward the end of year five, the team plans to have the properties appraised, review their values, and sell them. As sales close, available cash can be returned to investors in the order below. The exact timing and amount depend on the sales; rent payments do not automatically return your original $100,000.

Example If a $100,000 investment paid $8,000 each year for five full years, that would be $40,000 in income payments. The original $100,000 would be separate and returned from available sale proceeds. This illustrates the difference between income and return of capital.

The proposed order is investor capital first, any unpaid 8% preferred return next, then a 50/50 split of remaining profit between investors (LPs) and the team (GP). Think of filling one bucket before moving to the next. That order is called a “waterfall.”

Example: $130,000 is available after sale costs, fund bills, and reserves for a $100,000 investment with $8,000 of unpaid preferred return.

If sale proceeds are lower, each step receives only what is available. This table illustrates the proposed order, not an expected sale result.

This is a long-term investment in real homes, which take time to sell. It is “illiquid”: you cannot demand an early cash-out. The target hold is five years from the first purchase, with up to two one-year extensions. If you need the money before five years, this investment is probably not a good fit.

Yes. We reduce risk by targeting finished, rent-ready homes with sound structures and systems suited to our five-year plan. We inspect them and budget for repairs. Owning without mortgages removes loan payments and refinancing pressure, but unexpected costs, unpaid rent, or lower sale values can still cause a loss of some or all capital.

Evictions do happen. Based on our team’s prior experience, our planning estimate is that about 5% of properties may go through an eviction at some point during a five-year hold. Think of about five homes out of 100 over the whole five years. Actual results can differ. Our buying calculations allow for missed rent, vacancies, maintenance, and reserves for these events.

Example Two empty months at $1,200 rent mean $2,400 less income, plus any legal or cleanup costs. The team manages the process and finds a new tenant. Reserves help cover the gap; larger-than-planned costs can affect investor payments.

Think of a home as several items on one receipt: land, the main building, appliances, carpets, and certain outdoor improvements. A cost segregation study separates the costs so eligible items can be deducted sooner. Land cannot be depreciated. The main residential building is generally deducted over 27.5 years; qualifying shorter-life items can be deducted faster. That can create a tax loss on paper even while the home brings in cash.

These allocations are examples, not a FIF estimate. There is no blanket IRS rule allowing a 50% deduction for every home. Current law allows 100% first-year bonus depreciation for certain qualifying property acquired and placed in service after January 19, 2025; that does not make the whole house deductible at once. The study and tax rules determine the amount, and your own tax situation determines when you can use it.

Imagine Amina earns $300,000 from her job and invests $100,000 in FIF. She also has $25,000 of taxable profit from other rentals that count as passive for tax purposes. Suppose her fund tax form, called a K-1, shows a $20,000 passive rental loss she is allowed to use. That loss could reduce her taxable rental profit from $25,000 to $5,000. It generally does not reduce her $300,000 salary. The benefit comes from matching an allowed loss with the right kind of income.

The $20,000 loss is for illustration. It is not a projected FIF deduction. Your CPA checks how much you may deduct, including limits tied to your investment and the amount you have at risk. Unused passive losses generally carry forward.

Suppose Amina bought stock for $40,000 and it grew to $60,000. While she still holds it, that $20,000 rise generally is not taxed. If she sells, she generally has a $20,000 capital gain. Holding the stock for more than a year may qualify the gain for long-term tax rates, but does not turn it into passive rental or business income. The IRS calls ordinary investment stock gains and dividends “portfolio income.” A passive fund loss generally cannot offset them. It feels passive because she did no work, but the tax rules use a different definition.

Yes, if that income qualifies as passive business income under IRS rules and the fund loss is available to use. The key is your involvement in the business. If you regularly work in or run it, the profit usually remains nonpassive—even when paid separately from your salary. If you are an owner who does not materially participate, meaning you do not meet the IRS tests for involvement, the business profit may qualify as passive.

Cash distributions and taxable profit are different. Your CPA checks the income reported on your K-1 and your participation, not just the amount transferred to your bank account. Both amounts in this example must be reported by the same taxpayer.

No. A deduction lowers income that may be taxed; it is not a cash refund of the same amount. If a person could use a $20,000 deduction and tax on that slice of income were 30%, the simple math would be $6,000 of tax difference, not $20,000. The rate and result are made up. A tax study can also move deductions earlier, which may mean different tax later.

It generally carries forward to a later year when you have qualifying passive income. A fully taxable sale of your entire interest to an unrelated buyer may also release unused passive losses, subject to other limits. Your CPA can check that when you exit. Depreciation taken now may also increase taxable gain when property is sold, so it is useful to look at both today’s benefit and the eventual sale.

A 1031 exchange is a tax rule for swapping investment real estate for other investment real estate under strict conditions. A normal FIF partnership interest is a piece of a fund, not a deed to replacement real estate. It generally does not qualify as what you receive in a 1031 exchange. The fund itself may exchange property, which is a different question. If you are selling a property, ask your tax adviser and exchange professional about your specific options before you close the sale.

FIF is designed to be halal, with real property ownership and no interest-based property borrowing. Certification is in progress: we are engaging a renowned Islamic scholar to review the structure and guide any needed fine-tuning. Our plan is to complete certification before launch and share the written certification once it is issued.

The current documents promise a summary after each quarter, and independently audited financial statements after each year, usually within 120 days of year-end, subject to specific delays. Quarterly summaries may not include full financial statements. Ask us what a sample report looks like and who will answer questions about homes, repairs, and cash.

FIF is offered under SEC Rule 506(c), and we filed the public Form D notice with the SEC on September 22, 2026. You can read the notice on the SEC website. This rule provides a path for a private fund to raise capital from verified accredited investors without registering a public offering. We verify investor eligibility as part of the subscription process. Form D is a notice filing, rather than SEC approval of the investment. We can provide our offering documents and confirm the status of any required state notices for your investment.

Yes—please ask us for the latest materials to share. We are happy to answer their questions and walk them through the fund. Each investor completes the same eligibility and subscription process.

Let’s walk through a sample home, its purchase price, expected rent, expenses, and reserves. We can also explain fees, the planned timeline, and investor reporting. Bring your questions and, if helpful, your tax adviser so you can decide whether the fund fits your goals.

Start by letting us know. We will help you understand the fund, answer your questions, and guide you through the paperwork. Our current plan is to complete investor decisions before November 30, 2026, with an operating launch in early January 2027.

A call confirms the next steps; the accepted subscription documents confirm your investment. If using retirement funds, start the account and transfer process early so the provider has time to complete it.

You can invest personal cash or use an eligible self-directed retirement account, including a traditional IRA or Roth IRA. “Self-directed” means the account can hold investments such as private real estate funds. A custodian holds and administers the IRA. We currently plan to work with Rocket Dollar and American IRA as provider options, subject to their acceptance of the investment and account setup. The IRA owns the fund interest, and payments return to the IRA.

Money from a former employer’s 401(k) can generally be used by rolling eligible funds directly into a suitable self-directed IRA. For a current employer’s 401(k), access is often restricted while you still work there. Some plans allow eligible transfers while you are employed, often after age 59½. Your plan administrator can confirm what is allowed.

Example If you have $100,000 in an old employer’s traditional 401(k), an eligible direct rollover could move it into a self-directed traditional IRA. The IRA’s provider can then arrange the fund investment. The money stays within retirement accounts instead of being withdrawn into your personal bank account. Moving pretax funds into a Roth IRA is a different step and generally creates taxable income.

The main benefit is the retirement account’s own tax treatment. In a traditional IRA, investment earnings generally grow without current income tax; taxable withdrawals are taxed later. In a Roth IRA, qualified withdrawals are tax-free. A fund loss inside either IRA does not pass through to your personal tax return to offset your salary, stock gains, or other rental income. Your provider and tax adviser can check account fees, withdrawal needs, and whether any special tax rules apply to the investment.