John Behle, Terry..Religous buyers rent but no interest - Posted by Doug Jones

Posted by jimi on May 07, 2000 at 08:21:25:

can I get a witness?

John Behle, Terry…Religous buyers rent but no interest - Posted by Doug Jones

Posted by Doug Jones on May 04, 2000 at 04:35:38:

This is new one to me.
I was meeting with a RE Broker yesterday and she told me of one of her associates who is Muslim, I believe.
She said he “represents” the Muslim people in this city
and that they want to buy homes but no interest on the property is allowed to be paid while they live there.
What they have is a contract that states a payment of rent
and ownership combination based on the “pay down”.

An example: $100,000 house
$20,000 Down $80,000 Balance
20% ownership
$1500 Monthly
$1000 is rent
$500 to equity - 1st month

Next month- ownership would be 20.5% or so. This means the rent portion of the payment would be a little less each month.
Basicly, the same as the principal and interest breakdown
on a mortgage.
The problem is - No interest is allowed. If I buy the house
it must be all cash. Can anyone think how to “Partner” with a “fund” pool or sell a note that can be no interest anywhere and make these deals work?
Alot of the buyers are Doctors and other Professionals who are renting now!
Doug Jones

Isn’t it ironic - Posted by Glenn-OH

Posted by Glenn-OH on May 06, 2000 at 13:37:39:

Thank you jimi for coming up with a seemingly workable solution.
For many of the rest posting here, isn’t it ironic that you are quite willing to live in the greatest country on earth, which was founded by groups seeking freedom from religious persecution, yet when presented with an opportunity to work with one of the newer religious groups in the country, you are ready to condemn their beliefs, or act as if these beliefs are lies to dupe people. The Pope just apologized for the Crusades, the Nazis had to be defeated to prevent this kind of persecution, our nations youth are in Bosnia to try to stop ethnic cleansing. All these people are trying to do is buy a house. That is certainly a reason to mock them!
Everyone here, my self included, is trying to benefit from our governmental and economic system. Why would we object to anyone else trying to do the same?
Similar thoughts come to mind when I read some of your comments about paying taxes. These are used to fund the operations of the greatest country on earth, yet we find it necessary to act as if we are under a tremendous burden to live here, because of the taxes. One of the principles of the Reagan era was that people using certain services should pay for these services, to remove the burden from those of us not using them. The flip side of this is that those benefiting the most from our economic system should pay the most to support it - and I don’t mean in campaign contributions. But many of us seem to want to ignore that part of the equation.

Open your mind to different world views - Posted by jimi

Posted by jimi on May 05, 2000 at 15:25:25:

Interest payments are not in line with the tenets of Islam(Arguably, Judaism and Christianity also prohibit interest(Exodus 22:25, Leviticus 25:35-36, Deuteronomy 23:20,Psalms15:5, Proverbs 28:8, Nehemiah 5:7 and Ezekiel 18:8,13,17 & 22:12]).

I once sold a property to a Muslim family, say $100k value. Sale price $124k - 40k down, 84 equity payments of $1,000. Reverse engineer the math - same as a 10% note on the face … they never blinked about the high down payment and short term - from their perspective , this compared to 100% down!

Incidentally, I’ve used this tack on the buy side and gotten interest free owner takebacks!

For more info, input “Islamic Banking” into a web search engine …


Say to them "It’s against my religion on NO interest loans " - Posted by Ben in Ohio

Posted by Ben in Ohio on May 05, 2000 at 06:59:22:


Re: John Behle, Terry…Religous buyers rent but no interest - Posted by D

Posted by D on May 05, 2000 at 03:09:24:

Some else might be able to tell you if this is legal or not, but why not just figure what you need out of the place (including interest), take the total, divide it by 30, divide that by 12. Have them sign a note (secured by the property), for a specific down payment amount, plus equal monthly payments of whatever the figure came out to above. I have done this with mobile homes. the interest is already figured into the payments, and you don’t have to then charge interest where they will see it!!!

Hostility? - Posted by Lisa in Oz

Posted by Lisa in Oz on May 05, 2000 at 01:39:20:

There are certain things that others do that we may not understand, however we should respect their beliefs. Muslims have been buying and selling to each other for centuries and have managed to get around paying interest. If there is a deal to be done, I’m sure Doug will figure it out.

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by KEVIN

Posted by KEVIN on May 05, 2000 at 24:13:11:

oh my lets see here in detroit with one of the largest influx of middle eastern muslims lets reverse the trend
we dont pay more then $15 for a barrel of crude oil
we dont pay interest on our shell and mobil cards
etc etc this is america seperation of church and state
and if a certian segment can get away without paying any interest then we should all start a class action lawsuit against banks for discrimination!!!

Oh pleeeeez…what will be next? - Posted by ScottE

Posted by ScottE on May 04, 2000 at 23:49:16:

What a crock of crap…tell them that you can increase your price the total amount of interest over the term or they can pound sand.

This has NOTHING to do with religion and EVERYTHING to do with economics.

Good luck and let us know what happens!


Local Paper just did a story on the Muslims (Long) - Posted by Tuan Pham

Posted by Tuan Pham on May 04, 2000 at 22:45:50:

I don’t know about your city, but here in Minneapolis we have had an influx of African Muslim immigrants in recent years. Our newspaper, Minneapolis Star Tribune, just did a huge story on this upcoming problem for our local lenders. Most of the local leaders of the Muslim community are pressuring the banks here to give out loans with no interest whatsoever. The banks are now facing a dilemma. They don’t want to be seen as racist, but they also don’t want to give away the farm either. So Habit for Humanity are stepping in. The article stated that HH just built this home estimated to be worth about $100000+ interest free. While this really doesn’t pertain to Doug’s post per se, its going to be really interesting to see how all of this will play out here in Minneapolis over the next few years.

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by phil fernandez

Posted by phil fernandez on May 04, 2000 at 16:00:21:


Tell these jokers to take a hike. Because of their religion they don’t want to pay interest LOL. Where do I sign up. Remember, you call the shots not them.

If you offer them a 0% interest mortgage, you will never be able to sell that mortgage. Who wants to buy it with 0% interest. And if you do find a note buyer be prepared for a huge discount off of the face value.

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by David Alexander

Posted by David Alexander on May 04, 2000 at 10:32:14:

Nothing more than a L/O with rent credits.

But remember it’s your house your selling, you name the terms, not them.

What your talking about is an instance where say you buy a house for 80k and it’s worth a 100k. You lease it out for say a 1000/month with the option to purchase in a year for say a 110k. Now maybe for every dollar above the 1000, you give them credit towards their option strike price if they exercise, how much credit depends on you. I have given as much as 200%. So for example if they give $1100, then you credit 100 dollars towards their strike price, in this case $200. For me, havent done alot of these, but no one ever takes it up.

I also have clauses in my lease that if the lease is not paid on time it will nullify the option.

David Alexander

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by Doug Pretorius

Posted by Doug Pretorius on May 04, 2000 at 08:44:59:

Man that’s just too confusing!

How about selling it to them on a lease where a portion of the ‘rent’ decreases the purchase price each month?

Now the question is: Can YOU pay interest on a mortgage without violating their beliefs so you don’t have to buy these places cash or work out some nightmare with selling a no interest note? It’s worth asking. If you own it and pay a mortgage while they rent from you, maybe that would be ok.

Otherwise you’re going to be waiting a long time to get your money back, unless they sell, because they will NEVER refinance!

Re: Isn’t it ironic - Posted by Julius Levai

Posted by Julius Levai on May 06, 2000 at 14:58:01:

I would like to buy your house for FREE! Not NO MONEY DOWN but FREE, It is in my BIBLE. It is in my religion. Where and when do you stop? As I understand, when in Rome, You behave like Romans do. Your religius beliefs should not negatively affect anything (annimals) or anybody. If they pay all cash, there is no interest involved, but then again if someone doesnt beleive in CASH? Its my 02,1 cents (including interest) Julius Levai

Re: Open your…Thanks for the Intelligent Comment - Posted by Doug Jones

Posted by Doug Jones on May 05, 2000 at 21:08:41:

I am just looking for others who can possibly think
a little and help solve a problem. There has to be a way to buy and then resell to these people without anybody paying interest. I think this might help. Thanks

Re: Local Paper just did a story on the Muslims (Long) - Posted by Rob FL

Posted by Rob FL on May 05, 2000 at 08:20:48:

Actually being racist is just the opposite of what this group is asking. Racism/bigotry is treating one class different from another based soley on the fact that someone is part of this class. If the banks want to be non-racist, they would tell this group that FNMA/FHLMC, FHA, and VA guidelines state that we don’t treat people with special privelages simply because they are of a particular race or religion.

Hey if that is the case, I might convert to Islam until after my loan closes. HeHe.

Re: NO INTEREST ANYWHERE - Posted by Doug Jones

Posted by Doug Jones on May 04, 2000 at 14:40:39:

I have done those deals too. The idea here is: NO Interest is to be paid from anyone on the property while these people are buying it. I suppose they are renting from someone now who is paying interest…???
Not my religion…

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by Doug Jones

Posted by Doug Jones on May 04, 2000 at 14:37:22:

NO Interest on the property is allowed. I already tried that…Of course, a lease option would work otherwise. I do those already.
The big problem is: Who wants to put up Cash in trade for 12% or so yield??

Re: Isn’t it ironic - Posted by Laure

Posted by Laure on May 06, 2000 at 20:58:25:

How do I join your religion to get free houses??


Laure :slight_smile:

Re: John Behle, Terry…Religous buyers rent but no interest - Posted by Doug Pretorius

Posted by Doug Pretorius on May 04, 2000 at 15:45:38:

Not me.

How about an L/O which renews every year and is increased by what would have been paid in interest?