Has Anyone Used AHPFund.com?

Question

I have been looking into crowd funding and came across American Homeowner Preservation. From digging through their website, they seem to be a relatively low risk investment with a pretty good return (12% annual return). They accept both accredited and non accredited investors and the minimum investment is only $100 (insanely low???).

Has anyone used this site to invest or have any knowledge that might b helpful to a non accredited investor interested in investing less than $5000 in real estate?

Ian Ippolito · Answer

Account Closed, I hadn't heard of them before so I took a look. Your description sounds like you're looking for a low risk investment… Is that right? If so, there are not too many low risk investments that will return 12% in this environment.

They don't give very many details about the actual investments, but it appears that they are investing in nonperforming mortgages (mortgages where people have stopped paying on them). If so, this is actually a very high risk investment. In general, people need a place to live, so they will prioritize house payments. If they've stopped making payments, they are probably not in a very good place (lost a job) and often those sorts of situations don't turn around very quickly. Companies that invest in nonperforming mortgages purchase them at a very low price (since they are not considered worth very much). Then they try to get them to perform and when they are successful they make a nice profit. The problem is that many times you can't draw blood from a stone, and when that happens they take a complete loss on the mortgage.

Amy Wan · Answer

@Ian Ippolito and @Lane Kawaoka might have some feedback.

Travis Shaw · Answer

@Anne NA its great to hear about your positive experience with AHP. Ive been considering investing with them as I appreciate their social mission. Im curious about your experience with previous AHP funds, especially returns of 35%. That's pretty impressive for a debt position, actually its impressive for any position. Was that your annualized return? Im curious-if they have been producing 35% returns for several years, why are they only offering 12% on their current funds? That does not make sense.

Ive listened to @Lane Kawaoka speak about AHP, its good to hear he is getting monthly distributions.

Anne NA · Answer

I started investing with AHP in 2011.  I bought a house through AHP in Detroit from the owner who had some health issues, and financed it until she could get back on her feet financially to buy it back from me.  I asked Jorge (AHP founder) to close the deal early to qualify for a refund from an expensive real estate training program, and he found someone else to buy it from me, so I got the refund.  I was really impressed that he went out of his way to help me.  Since then I've invested in two AHP funds -- one in 2012 which closed in 2014 and made a good return (over 35%), and another in 2013 which should close later this year and has a 35% return so far.  I used my solo 401K funds, so all returns have gone back to that account.   I haven't met Jorge in person, but have found him to be very dedicated to helping people based on my dealings with him.  His memoir 'Burn Zones: Playing Life's band Hands' also gives some good examples of his character and motivation.

Lane Kawaoka · Answer

Full disclosure... I get my distributions every month. I use it to lease my car. :)

Amy Wan · Answer

To provide a bit more context, AHP is short for American Home Preservation. Its founder is Jorge Newbery, who at one point had over 4000 doors, and then lost it all. I believe AHP was set up with more of a social mission, and as more of a social enterprise. It's mission is to to buy non-performing notes of homes with families inside them, and attempt to work out the debt.

Amy Wan · Answer

trying to tag @Lane Kawaoka again, since I know he's talked with jorge.

Has Anyone Used AHPFund.com?

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