Question:

my parents are buying a house. i was planning to invest as well. however i don’t have the cash flow at this time. they are going to lend me 33% of the money needed to buy the house to invest in the house and then if there are any profits made i will get 33% of the profits. if there is a loss incurred i will incur 33% of the loss. is there any issue of ribbis?

Answer:

Do you have to give them back any more money that what they are lending you? If not, and any loss, or profit that is incurred, is all on you, then it is a simple loan and it would not appear to be ribbis. If they are getting profit from the money that they are lending you, then you should make a heetrer iska with them. You can download the heter iska form from this site http://dinonline.org/2010/02/24/heter-iska/.

 

Tags: forbidden interest ribbis

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