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American Homeowner Preservation empowers accredited investors to invest in mortgage and real estate opportunities online through a private, secure website. Investors can browse investments, review legal documents and due diligence materials and sign legal documents securely online. Investments can be completed by ACH transfers initiated online, or by wire.  

American Homeowner Preservation purchases pools of challenged mortgages from banks and other lenders and then offer borrowers viable, sustainable solutions to stay in their homes with reduced payments and discounted principal options. Alternately, if homes are vacant or families want to move, American Homeowner Preservation offers deficiency waivers and incentive payments to cooperate with deeds in lieu or short sales in order to put the homes back into service. Funds collected from payments and dispositions are distributed monthly to investors. 
Investors are paid on the balance at the end of the month, prorated for the numbers of days the investment was outstanding. For instance, an investment made on Feb. 24 would generate five days of earnings, through Feb. 28, then full months after that. 

Also, the earnings accrue from the date of investment, but are not distributed until the 10th day of the month following closing. We expect to close 2014B by the end of March. Thus, an investment made on Feb. 24, would likely see the first distribution on Apr. 10th
, which would include the month of March plus the five days of Feb.  

After payment of expenses and subject to any reserves, revenue is distributed as follows:
1. Preferred Return to each Class, based on investment balance for each investor on the final day of the prior month.
2. After Preferred Returns are paid to each Class, any Excess Revenue is distributed as return of Capital. Class A Capital is returned first and, once fully retired, Class B Capital is returned and, once fully retired, Class C Capital is returned. Thus, prepayment of some or all Capital prior to the end of expected term is possible for all Classes.
3. Once all investors have received payment of Preferred Returns and return of their Capital, AHP is entitled to any residual value in the assets held by each Series. Thus, AHP's incentive is back-loaded and maximized by distributing Preferred Returns and returning Capital to investors as promptly and efficiently as possible.
American Homeowner Preservation offers consensual solutions to every borrower.  If borrowers want to stay in their homes, they will be offered modifications featuring affordable payments and discounted principal options. Alternately, if homes are vacant or families want to move, American Homeowner Preservation offers deficiency waivers and incentive payments to cooperate with deeds in lieu or short sales in order to put the homes back into service.  By buying loans at significant discounts, we can deliver transformative financial solutions to struggling families and deliver strong returns to investors. The returns are a result of the significant discounts we negotiate with lenders which sell their loans, coupled with American Homeowner Preservation's formula to achieve prompt, consensual solutions with borrowers.

In some situations, homeowners will not respond to American Homeowner Preservation outreach efforts. Thus, American Homeowner Preservation will push foreclosure actions forward in an effort to prompt borrowers to respond. If borrowers respond, American Homeowner Preservation will continue to offer solutions. If not, American Homeowner Preservation will complete foreclosure actions. American Homeowner Preservation remains keenly aware of our dual missions, which are our social mission to keep families in their homes and our financial mission to deliver compelling returns to our investors. Thus, American Homeowner Preservation will not simply let families live for free in their homes indefinitely. The reality is that many of these families yearn for permanent solutions to their personal housing crises and have worked diligently on modifications with banks, which have typically proven impotent in administering borrower solutions. On the other hand, some families may have grown comfortable living for free, and this is not a long-term option once American Homeowner Preservation acquires the debt. 

A prompt consensual solution is typically the greatest social and financial result. Nevertheless, faced with the option of modifying a loan to keep a family in their home or realizing a greater return by foreclosing, American Homeowner Preservation will always opt to keep the family in their home. In the aggregate, this strategy yields greater financial returns as American Homeowner Preservation avoids the time and expense of the protracted foreclosure litigation which bedevils many banks. Borrowers want solutions which make sense, and American Homeowner Preservation offers these voluntarily without being prodded by litigation.
American Homeowner Preservation began in 2008 as a 501(c)3 nonprofit with a mission of keeping families at risk of foreclosure in their homes. American Homeowner Preservation pioneered the short sale leaseback to help families avoid foreclosure through reduced payments and elimination of negative equity. Transforming to a for-profit, American Homeowner Preservation was able to arrange viable long-terms solutions to keep hundreds of families in their homes. AHP started buying mortgages in January 2011 and evolved into a hedge fund in October 2011. Finally, in October 2013, to enhance scale by maximizing convenience and transparency afforded by the recently-passed JOBS Act, American Homeowner Preservation transitioned yet again to become an online investment community to deliver impactful social returns and compelling financial returns.
Based on American Homeowner Preservation's experience resolving thousands of loans, American Homeowner Preservation designates 25% of each pool at the short-term, one-year level;  25% of each pool at the mid-term, two-year level;  and 50% of each pool at the long-term, five-year level. Historically, 50% or more of American Homeowner Preservation loans are resolved through deeds in lieu, short sales or foreclosure and the time frame for these dispositions averages less than a year. If families modify, they pay an upfront payment to resolve their delinquencies, then monthly payments. Once modified, American Homeowner Preservation typically introduces borrowers to banks and other lenders to work towards eventual refinancing, This process often takes 2 - 3 years or more as borrowers raise their credit scores and allows time to elapse since the severe mortgage delinquencies.  
When investing in a REIT, most investors have little to no information regarding actual properties the REIT invests in. With American Homeowner Preservation, investors can invest in pools of mortgages and properties and have insight into detail on each of the individual assets securing their investments. 

American Homeowner Preservation strives for maximum transparency throughout the investment process, from initial due diligence through final disposition.  Thus, investors will have access to due diligence materials, which may include valuation, title reports and financial proformas, when choosing whether to participate in an investment. Once the investment is made, investors can track the financial and social returns generated by each pool and each asset. 

When you invest in an opportunity with American Homeowner Preservation, you are purchasing a member interest in a Series of American Homeowner Preservation LLC. In turn, the Series is the Beneficial Owner of mortgages and real estate owned by a Series of American Homeowner Preservation Trust, of which U.S. Bank Trust N.A. is the trustee. 

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.

Joining American Homeowner Preservation, browsing the marketplace and investing with AHP is free of charge. We do not add on any fees and investors receive the scheduled returns without offset. 
All assets are held in American Homeowner Preservation Trust and the trustee is U.S. Bank. If needed, U.S. Bank could appoint a replacement manager in the event American Homeowner Preservation is unable to continue to manage.

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.

Yes. Similar to investing in the stock market and most investments, there are no guarantees. 

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.

American Homeowner Preservation will share timely updates with all investors via email. In addition, you will receive tax documents every year that you have a distribution from an American Homeowner Preservation investment.
Yes. The minimum investment is $10,000.
Typically, letters are forwarded to borrowers providing the three options: settlement, modification, or cash incentive to cooperate with deed in lieu or short sale. Each of the options has the actual numbers that are approved for the particular borrower, i.e. settlement amount, new modified payment and reduced principal balance amounts, and cash incentive. These are based on formulas derived from the property value and existing loan terms, and are typically attractive to borrowers as we share some of our acquisition discount with them. These letters are sent every 30 days, and our servicer also makes phone calls. We do not require any documentation from the borrowers in order to proceed with any of these options, so any of the options can be in effect within a few days once borrower says go. If the borrower does not respond within the first 30-days, we will continue or initiate foreclosure. This is often a long process, and the goal of the action is to provoke a response from homeowners who in many cases have not paid on the mortgages in years. In many cases, borrowers will not react until the foreclosure sale is just days away. We will work with borrowers who wait, including some who do not talk to us until even after the sale has occurred. However, the best deal we offer is in the first letter as we have not incurred legal expenses yet. If borrowers wait, the numbers will still be attractive but not as much as the first offer, because we need to account for the additional time and costs.
Returns are calculated on the amount of each investor's outstanding investment on the last day of the prior month, and distributed on the 10th of each month. Earnings are generated from payments, settlements, sales proceeds and any other revenue generated from the Opportunity. Net income is distributed to investors as follows:
1. Preferred Return to Class A
2. Preferred Return to Class B
3. Preferred Return to Class C
4. Return Capital to Class A
5. Return Capital to Class B
6. Return Capital to Class C
These distributions are made from available funds. If the net income was insufficient in any month, then the Preferred Returns would accrue and be payable in the next month in which funds were available. Thus, the risk in not achieving the returns would be AHP's inability in any month to generate sufficient revenue from the opportunity. This could occur, for instance, if resolutions were completed at a slower-than-anticipated pace, which would delay the resulting payments, settlements and sales.
Prior to the current crowdfunding model, AHP operated as a hedge fund and generated over 14% returns to investors in both 2012 and 2013.  
That said, past performance is not indicative of future performance.
Monthly revenue collected is distributed on the 10th of each following month, typically by ACH transfer to investors' bank accounts. After payment of expenses and subject to any reserves, revenue is distributed as follows:
1. Preferred Return to each Class, based on investment balance for each investor on the final day of the prior month.
2. After Preferred Returns are paid to each Class, any Excess Revenue is distributed as return of Capital. Class A Capital is returned first and, once fully retired, Class B Capital is returned and, once fully retired, Class C Capital is returned. Thus, prepayment of some or all Capital prior to the end of expected term is possible for all Classes.
3. Once all investors have received payment of Preferred Returns and return of their Capital, AHP is entitled to any residual value in the assets held by each Series. Thus, AHP's incentive is back-loaded and maximized by distributing Preferred Returns and returning Capital to investors as promptly and efficiently as possible.

Get in touch

  • (800) 555-1055
  • 819 S. Wabash Avenue Suite 606
    Chicago, IL 60605