How OwnerFinance Works to Your Benefit?

by | Sep 27, 2022 | Uncategorized | 0 comments

Shahclan Boston OwnerFinance is in the business of buying houses, fixing them up and selling them with OwnerFinance. By OwnerFinance, we mean we provide our own financing for the houses we sell. Since its our own in-house financing, we can be much more flexible with the qualifying criteria for our homebuyers.

We can work with less-than-perfect buyers such as buyers with credit blemishes and low credit scores, self-employed buyers who have difficulty showing consistent income, buyers who have low to no down payment or closing costs, buyers who have residency issues such as no green card or citizenship status. And with can work with buyers who have other sticky conditions.

Our financing is based on the Islamic financing model called Murabaha, which means sales price plus profit mark-up. That means we sell our house to you at a sales price plus our profit. For instance, if our sales price of the house is $500,000, we would add a certain profit to it, and let you pay it over a 30 yr period. Our profit is made on the sale of a product (house), and not on the money. As for the funds to buy the house, we work with individuals who put up the money to purchase the house and pay for fix-up costs. These individuals, whom we call investors are putting up their money for investment purposes and they are looking to make a profit on their investment. If you are interested to buy a house that is on the market and listed with a real estate agent, we can also do that. In this case, you are required to buy the house at its appraised value. For instance, if the house is listed at $500,000 with a real estate agent, we would do an appraisal on the house to ascertain if the house is worth that much. If the appraisal comes to that number, then we will sell you the house at $500,000. We don’t inflate the price, we want to make sure you are buying the house at its real value. Then we would negotiate with the owner to get a little discount to cover our investor cost and our profit. Currently, we are actively buying houses, fixing them up and selling them with OwnerFinance in the states of Massachusetts and Rhode Island, USA. We will be including the state of New Hampshire in the next few months, insha-Allah. If you interested in buying a listed house beyond these states, we can still work our program to make buying your house a reality.

Our investor costs is about 10%, so we would need to get a bit more discount that that with the owner of the house. As such, we may negotiate a 15-20% discount from the sales price. If the owner agrees, 10% would go to our investors plus the monthly payments, and we would make a 5-10% profit.

In the end, our homebuyer is happy as they got a nice house for themselves and their family despite their challenging circumstances, the investors are happy that they got a nice return on their investment, and we are happy to make a little profit in putting the whole deal together. This is truly a win-win for all parties involved.

Questions? Contact:
Amin Shah
Shahclan Boston – OwnerFinance

Boston, MA -USA
Phone 617-787-5151