I Thought I Found A Loophole
I was operating real estate deals, structuring multifamily acquisitions, and making sure my name was never on the loan.
That made it halal… right?
At least, that’s what I kept telling myself.
“I’m not the one taking the loan.”
“I’m not signing the papers, just building the deal.”
“It’s just how the industry works.”
I wanted to believe that was enough.
That as long as I wasn’t technically tied to the interest… I wasn’t compromising anything.
It felt like I had found a workaround.
A way to build wealth without crossing the line.
But in hindsight? It wasn’t a loophole.
It was a justification.
The deeper I got into real estate, and into my deen, the harder it became to ignore the uneasiness.
I wasn’t signing the mortgage, but the entire deal still relied on it.
The rental income? Paying off an interest-based loan.
The returns? Boosted by borrowed money.
The exit plan? Dependent on refinancing at the right time.
It was profitable.
It looked great on paper.
But underneath it all… it was powered by riba.
And deep down, I knew it.
It wasn’t clarity. It was convenience.
Eventually, I couldn’t keep looking away. I had to get honest about the foundation I was building on.
The Problem No One Talks About
Most real estate deals, especially in multifamily, follow this exact structure:
• Investors (LPs) contribute capital
• The operator (GP) uses it as a down payment
• A mortgage covers the rest
• Rental income pays the loan, interest, and expenses
• Returns are distributed once the loan is serviced
Even if you’re not on the loan, your money is helping pay for it.
And your returns are tied to the performance of an interest-based structure.
In many cases, riba is just hidden under different paperwork:
• Your profit is now tied to borrowed money
• Your investment hinges on refinancing timelines and interest rates
• If rates spike or a refi fails, so do your returns
• And spiritually, there’s no clarity in where your money truly stands
3 Questions Every Muslim Investor Should Ask:
- Would this deal still make sense without a loan?
- Are the projected returns dependent on refinancing or interest savings?
- If I profit is it from the asset’s performance, or from riba in the structure?
For Muslims serious about avoiding riba , even indirect, this is a cost that’s too high, no matter the return.
Good returns are everywhere. But Barakah? That’s something else.
For me, choosing the halal path wasn’t about giving up opportunity.
It was about finally building with certainty.
And if you’ve ever felt that discomfort , know you’re not alone.
That feeling is a sign. And it might just be your greatest protection.
With you on this journey,
Sirai