LONG-TERM STABILITY AND GROWTH FOR THE MUSLIM COMMUNITY

Islamic Commercial Real Estate Financing

Craft3 helps Islamic community organizations and Muslim-owned businesses buy property to stabilize and expand.

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Diminishing Musharakah financing can help you purchase commercial property without compromising your faith or needing all the capital up front.

Lilac Learning Center Team
who we work with

Nonprofits & Businesses in Oregon & Washington

  • First-time commercial real estate buyers
  • Entrepreneurs and nonprofits with limited capital or equity
  • Established nonprofits and businesses looking to buy a building
  • Nonprofits and businesses seeking to stabilize, diversify, and grow

Diminishing Musharakah

How It Works

  • Partnership: In Musharakah, the parties purchase and own the commercial real estate in common through a special purpose entity.
  • Shared Profit: Profits and losses are shared among the partners in proportion to their respective investments.
  • Shared Risk: A main difference between this structure and traditional financing is the risk of ownership taken by Craft3.
  • Asset-Backing: Musharakah financing must be asset backed.

        Transformative

        Financing that expands what’s possible for your organization and accelerates your timeline.

        Flexible

        Tailored to meet the needs and timescale of your specific project.

        Accessible

        You don’t need fully committed funding to apply.

        Our Financing Can Help You

        • Safeguard against displacement and rising rents
        • Create long-term stability for your business or organization
        • Build equity through an enduring asset

        Features

        • Lower cash down requirements may be available
        • Specialized terms to match your needs
        • Lower owner-occupancy requirements
        • Flexible projections-based debt financing

        Rates & Terms

        Purchases up to $5,000,000 

        Cost
        Fixed profit rate between 7.00% to 11.00% 
        Fees
        Origination fee of 2% of total plus closing costs   Fees for nonprofits are 1% plus closing costs 
        Closing Costs
        $650 plus any third-party fees for appraisal, legal, etc
        Term
        Typically 3 to 7 years, with longer amortizations possible in some cases 
        Repayment Terms
        Per the Musharakah agreement, typically consistent monthly payments depending on asset type and associated shared expenses 

        Financiamiento con Craft3

        Craft3 supports entrepreneurs at every step of the application process.

        1
        Introduce Your Business
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        When you’re ready to apply, complete the online form below to help us learn about you and your business. If it looks like a potential fit, a Craft3 lender will reach out to talk with you about your business plan, uses of funds and collateral.

        2
        Apply
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        A Craft3 lender will invite you to apply and help you complete your application package. We will review your application and give your request the careful attention it deserves. Review usually takes 1-2 weeks, although it can be shorter or longer depending on the size and complexity of the request.

        3
        Decide
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        If we think we can help you with your request, we will notify you and outline the financing terms and the items, if any, we need for underwriting a final decision. After that we quickly move to closing and disbursement.

        Customer Story

        Innovative Islamic real estate financing let Cordoba Academy, an Islamic school and community organization located outside Seattle, buy a building and grow. Rather than charging interest—forbidden by Islamic law—the transaction was structured through shared ownership.

        Ready to take the next step?

        Looking for more Information?

        Business Resources

        We support entrepreneurs of all stages of the business journey and offer resources to help you learn, grow, and better understand your financing options.

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        For Businesses

        Owner-Occupied Commercial Real Estate

        To purchase your building, you’ll need capital and a trusted financing partner. Learn how Craft3 can help with an Owner-Occupied Commercial Real Estate Loan.

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        For Businesses

        Debt Financing Options

        There are many types of debt financing. The terms vary greatly and it’s essential that you understand them and the tradeoffs involved.

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        For Businesses

        Glossary of Finance and Business Terms

        If you’re interested in starting or expanding a business, you’ll likely encounter lots of terms and acronyms. This glossary will hopefully help you make sense of unfamiliar words and equip you for your business journey.