American Homeowner Preservation (AHP) 2015A+ LLC has acquired 799 non-performing mortgages from the 3 Star Properties, LLC bankruptcy. AHP paid $2,875,000 for $43,822,832 in total debt from the bankruptcy proceedings. The mortgages are on properties located in 39 states plus Puerto Rico, with the largest concentration in Ohio (184). AHP reported that 159 investors crowdfunded the acquisition.
AHP utilizes Reg A+ to raise funds from both accredited and non-accredited investors. Investments fuel the purchase of distressed mortgages from lenders including banks and hedge funds. AHP states that by taking control of the mortgages, AHP can craft viable solutions to keep families in their homes with favorable terms.
“We bought the 799 at 7% of the outstanding debt. By sharing the discounts, we’re able to generate transformative solutions for homeowners and returns for investors,” said AHP’s Founder and CEO Jorge Newbery. In 2016, AHP achieved a 39.71% return and paid 12% to investors.
If a home is vacant or the family does not want to stay, AHP offers incentives to homeowners to cooperate with deeds in lieu of foreclosure or short sales.
“Vacant homes often blight neighborhoods. When we break the gridlock and get a vacant home back into service, that can be a big step forward for a community,” Newbery added. “Some of these homes have been vacant for years.”
AHP is currently crowdfunding to acquire additional mortgages. Interested investors can review offerings on their site. Investments start at just $100.
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