Decisions in an LLC are governed by a document called an “operating agreement”. While every operating agreement is slightly different, they usually include a managing member and non-managing members. The managing member typically makes all of the day-to-day decisions and the non-managing members act as passive investors. There are certain activities that might mandate a vote by the non-managing members and the non-managing members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.
The investments you find on American Homeowner Preservation are private transactions in mortgages and properties throughout the United States. The investments are not traded on public stock exchanges and cannot be easily sold or traded.
Different levels of investment have different hold periods. A hold period is the anticipated time investors will be involved with the investment until it is disposed of or liquidated, and can range from one year to five years.
As an investor, you will receive a return on your investment when the company distributes money. Money is typically distributed monthly to pay your Preferred Return and, as available, return your Investment Capital.
Federal securities law generally requires that securities issued by private companies to their investors must be registered with the Securities and Exchange Commission (SEC) unless the offering qualifies for an exemption from registration.
An exemption from registration is available if the company offers securities only to accredited investors in a private offering. Accredited Investors are generally defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence.
American Homeowner Preservation is a network exclusively for accredited investors in order to comply with these requirements.
Investors can browse and select investment opportunities, then select from different hold periods and returns: 1-year 9%, 2-years 10.2% and 5-years 12%. Documents are electronically signed online and investors can choose to fund their investment by ACH or wire.
Investments are not final until all legal documents are signed and your investment has been accepted. When you make your commitment, the money is held securely in an Atlantic Capital Bank escrow account controlled by WealthForge, our broker dealer. The money is transferred for the sole purpose of the purchasing the mortgages or properties included in the Opportunity. If for any reason the assets included in the Opportunity are not purchased, 100% of investment monies are returned directly to investors.