Creative Financing—Closing a Commercial Deal with a Seller Carry Halal Loan

Finance
1

Just had a listing go under contract using an extremely short-term Seller Carry Halal Loan on a commercial deal. First time seeing this structure in action, but at the end of the day, real estate is about getting the best price and terms for the seller.

Seller carrybacks are already a tool in commercial deals, but structuring one within Halal financing principles adds another layer of creativity. Unlike conventional loans with interest, Halal financing follows Sharia-compliant structures like Murabaha (cost-plus financing), Ijara (lease-to-own), or Musharaka (profit-sharing agreements). In this case, the seller structured financing to comply with no interest (riba) while still securing favorable terms.

Creative financing is what separates good dealmakers from average ones. When traditional lending doesn’t fit, structuring alternatives—whether it’s seller financing, lease options, or Islamic finance models—can make or break a deal.

Anyone else structured a Halal loan in commercial real estate? How did it work out?

26 Likes
2

This is awesome. I’m learning about Halal financing right now!

3

This is what I love about CRE. You can make a deal work 10 different ways if everyone’s flexible. Creative, respectful financing wins every time.

4

Haven’t done a Halal deal myself, but this is fascinating.

Do you mind sharing more about how you structured it? Was it a Murabaha with markup defined upfront? Or more like a short-term Musharaka with profit-share? It’d be great to understand how to actually pull this off in practice.

5

you need a closing team that understands Islamic finance. Otherwise, even well-intentioned deals fall apart.