Real EstateActive
Midlothian Housing Subdivision
Target return
8–12% projected annual return
Timeline
3–5 year hold
Structure
Profit-sharing
Minimum
$10,000
Deal summary
The Midlothian Housing Subdivision is a residential development project in Midlothian, Virginia — a growing suburb southwest of Richmond with strong housing demand and limited new supply.
Baraka is partnering with an experienced local developer to finance construction of a new residential subdivision. Returns are generated through lot sales and home completions, distributed to investors through a halal profit-sharing structure upon exit.
There is no interest, no debt service, and no fixed return obligation. Investors and the sponsor share in profits proportional to their contribution.
Why we invested
- Sponsor has 10+ years residential development experience in the Richmond, VA market
- Land already acquired and entitled — reduces permitting and timeline risk
- Strong absorption rate in Midlothian — consistent demand from families and move-up buyers
- Asset-backed by titled real property
- Clear exit path — proceeds distributed upon lot sales and home closings
Full deal details
Financial model
- Projected revenue by phase (lot sales and home closings)
- Cost breakdown: land, hard costs, soft costs, contingency
- Return waterfall and profit-sharing distribution schedule
Sponsor
- Sponsor identity, bio, and market track record
- Past residential projects in the Richmond metro area
- References and third-party diligence notes
Use of funds
- Land acquisition and entitlement
- Construction and site development
- Contingency and reserves
- Baraka structuring fee
Risks & mitigants
- Construction delays — mitigated by experienced local GC and phased delivery
- Cost overruns — mitigated by contingency reserves and fixed-price packages where available
- Market softening — mitigated by Midlothian absorption trends and conservative pricing assumptions
Documents
- Private Placement Memorandum (PPM)
- Subscription Agreement
- Operating Agreement
Full deal details — unlocked after a short call
Schedule a 20-minute call with the Baraka team to access:
- • Financial projections & assumptions
- • Sponsor background & track record
- • Use of funds breakdown
- • Risk factors & mitigants
- • Investment documents (PPM, subscription agreement)