Chicago-based real estate crowdfunding American Homeowner Preservation (“AHP”) announced earlier this week the launch of its very own self-running Regulation A+ campaign.
The funding portal, which was founded by Jorge Newbery in 2008, revealed that it has been working hard to get the offer qualified by the Securities and Exchange Commission (SEC) under the Regulation A+ rules. It is currently offering to sell up to $50 million of Class A Interests. Explaining its key services, AHP stated:
“AHP buys pools of distressed mortgages at a significant discount, often 50% of the current property value.Then we work with each homeowner to find a solution that keeps the family in the home with an affordable loan modification or discounted settlement. If the home is vacant or the family wants to move out, we offer a cash incentive for a deed-in-lieu-of-foreclosure or short sale. We work with every family to find the solution they want, regardless of their situation. Because we interact directly with the homeowners, AHP helps reduce foreclosure-related legal fees, costs and expenses that cause losses for the big banks. Instead, our solution creates possible returns for our investors.”
AHP also explained that it purchases non-performing mortgages at discounts and then offers sustainable solutions to families:
“We strive to deliver consensual solutions which families want. Resolutions include modification, refinancing, discounted settlement, short sale, and deed-in-lieu of foreclosure. We make a profit if our revenue – payments and disposition proceeds – exceeds the price we paid for the loans after subtracting all our expenses.”
The company revealed that investors get their share of the profits first once all expenses are paid. It will pay the investors a return of up to 12% a year before it receives any profits. It will also return to investors all of their invested capital before it gets any profit and then it keeps any remaining profits.
AHP’s campaign welcomes accredited and non-accredited investors. Although there are no minimum net worth and income requirements, non-accredited investors cannot invest more than 10% of the greater of their annual income or net worth. This initiative is also open to both U.S. and non-U.S. investors.
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