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2015

AMERICAN HOMEOWNER PRESERVATION


819 SOUTH WABASH AVENUE SUITE 606 CHICAGO, ILLINOIS 60605
AHPINVEST.COM

(800) 555 - 1055

DISCLAIMER

*Past performance is not indicative of future performance. This investment entails a high degree of
risk. No returns are guaranteed.
This communication is intended only for those persons with an in-depth understanding of the high-risk
nature of alternative investments. The communication is general in nature and should not be
considered a full statement of the facts pertinent to this message. The investments shown herein may
not be suitable for you. This communication is intended for, and specific to, the person to whom it was
sent. The document may not be distributed in either excerpts or in its entirety beyond the intended
recipient. American Homeowner Preservation, LLC. ("American Homeowner Preservation") will not be
held responsible if this document is used or is distributed beyond its initial recipient or if it is used for
any unintended or unauthorized purpose. All investors should make their own determination of whether
or not to make any investment, based on their own respective independent evaluation and analysis.
To the knowledge of the sender, this document and the relevant pages herein are: (i) current as of the
date of distribution; (ii) subject to change without notice; (iii) directed solely at eligible accredited
investors; (iv) not directed at, may not be suitable for, and should not be relied on, by general retail
clients. American Homeowner Preservation does not do any of the following: (a) produce in-house
research; (b) make recommendations to purchase or sell specific securities or provide investment
advisory services. All prospective investors are highly encouraged to retain and consult with their own
respective independent legal counsel, tax and financial advisers, investment advisers and accountants.
By reading this communication, you hereby acknowledge that you are an accredited investor. If you are
a general retail client, then this communication is not intended for you. Alternative investments may
not be suitable investments for you. You may not possess the sophistication to rely on the contents of
this communication, and in such case, you should either shred or return the communication and
document to American Homeowner Preservation. Neither American Homeowner Preservation nor any
of its directors, officers, employees, representatives, affiliates or agents shall have any liability,
howsoever arising, for any error or incompleteness of fact or opinion in, or lack of care in its
preparation or publication, the material and communication herein.
American Homeowner Preservation, LLC is not a registered broker-dealer, funding portal, or
investment advisor and does not conduct any activity that would require such registration. Equity
securities are offered through WealthForge, LLC, a Virginia limited liability company (WealthForge),
which is a securities broker/dealer registered with the U.S. Securities and Exchange Commission and a
member of the Financial Industry Regulatory Authority, Inc. Individual personnel of American
Homeowner Preservation, LLC are registered representatives of WealthForge. WealthForge has
developed a business continuity plan on how they will respond to events that significantly disrupt
business. WealthForge is located at 6800 Paragon Place, Suite 237, Richmond, VA 23230, tel: (804)
308-0431.

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| American Homeowner Preservation

A ME R IC A N H O ME O W N E R P R E SE R V A T IO N
A WINNING SOLUTION
American Homeowner Preservation generates high-yield
distressed mortgage investment opportunities which
positively impact families and communities. By
purchasing sub-performing mortgages at significant
discounts, AHP can provide above-market financial
returns to investors. Simultaneously, struggling
families receive transformative modifications to
stay in their homes with affordable payments and
discounted principal balances.
AHP offers membership interests in series LLCs which
are collateralized by first mortgages secured by real
estate. The debt is often purchased at 50% or less of the
current value of the underlying properties. The
offerings are often geographically diverse, frequently
including assets from many states of the union, from
California to New York and Alaska to Puerto Rico and
many places in between. Assets are purchased into
American Homeowner Preservation Trust, of which U.S.
Bank is the Trustee. Resolutions are achieved by
motivated professionals working at a branch office of
Security National Servicing in the same location as AHP.
AHP was founded in 2008 in Cincinnati, Ohio with a
mission of helping homeowners at risk of foreclosure.
Over time, AHP evolved into an investment fund
manager purchasing first mortgages secured by homes
in low- to moderate- income neighborhoods as well as
loans with issues such as litigation, compliance or
documentation. By executing a socially-responsible
strategy focused on the fringes of the market where
asset prices have not been distorted by loose-money
policies, AHP is able to offer investors
a potent combination of security, high-yields,
and social impact.

American Homeowner Preservation

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T H E PR O B LE M
MORTGAGE CRISIS
In 2007 the U.S. economy entered a mortgage crisis causing panic and
global economic turmoil. Americans lost their homes in numbers far
outweighing the capacity of institutions to respond, even with
assistance from the federal government.
Unprecedented monetary measures were taken by central banks
across the globe which pushed rates and bond yields to record lows.
Consequently, anyone seeking safe returns within income
instruments has been left with vehicles offering paltry returns.
DECLINING YEILDS
Over the past 30-years, bonds delivered investors strong annualized
returns averaging over 8%. However, the 10-year Treasury yield that
topped 15% in the early 1980s now offers around 2% in 2014. With
yields at these levels, options for investors seeking reliable greater
returns in their portfolio have been limited. Further, in an
environment of consistently low yields, financial institutions face
increasing pressure to produce results their investors want.
10 YEAR U.S. TREASURY VS. MORTGAGE DEBT

American Homeowner Preservation

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S O L UT I O N S
AHP HAS DELIVERED DOUBLE DIGIT RETURNS
At American Homeowner Preservation, our solutions driven
culture and transparent strategies leave us well equipped to
address the various challenges the income markets have
presented us.
AHPs heavily collateralized, non-levered issues generate the
returns many investors have needed. AHP enables investors to
earn returns comparable to the equity markets within a stable
and risk- averse model. However, providing a solution for the
anemic fixed income markets is only part of the solution.
PRESERVING NEIGHBORHOODS & COMMUNITIES
Among the most daunting byproducts of the economic crisis is
drastically diminished home values. 4.4 Million Americans have
lost their homes, but even more have held on hoping that a
solution could materialize. AHP is that solution for these
families. Providing innovative strategies and consensual
solutions, affords the opportunity for homeowners to keep
their homes. Without the efforts of our in house teams,
homeowners and families would lose, and neighborhoods and
communities would deteriorate. AHP utilizes resources to
preserve neighborhoods and communities and provides help to
those who have been hardest hit by the economic crisis.
SECURE YOUR FUTURE
At AHP we say you can secure your future by securing
someone elses. This is one of things that makes our solution
so powerful. We strive to achieve win- win- win solutions where
Investors win Homeowners win Lenders win. We know that
profitability and doing right can go hand in hand. The
ramifications and benefits of managing our organization in this
manner have allowed us to provide lenders and investors with
a viable alternative in a market where the social impact and
purpose of any organizations actions can often be overlooked.

| American Homeowner Preservation

T H E A H P D IF F E R E N C E
STREAMLINED BUSINESS MODEL

ADAPTABILITY

AHP keeps all operations under


one roof. Acquisition, Servicing,
Legal Counsel, Portfolio
Management, and work together
as a cohesive team in our
Chicago office.

With resources in one location,


AHP is able to easily redirect
human capital to specific
projects as necessary.
Opportunities can move quickly,
and our organization is
structured to act appropriately.

LEADERSHIP

RESPONSIBILITY

AHPs leadership team and


the vision they bring to the
company, we feel is an
underlying competitive
advantage. With decades of
experience in the real estate
industry, leadership has a keen
understanding of trends, risk,
and opportunity.

At AHP, responsibility is at the


heart of our business. While
providing our Investor clients
with optimal returns and
security, we are preserving
neighborhoods and communities
and improving the lives of the
people who live there.

PASSION
AHP endeavors to excel at our
dual mission of achieving
extraordinary social impact for
struggling families and
generating financial gains for
our investors.

American Homeowner Preservation

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S T R A T E G I C A LL IA N C E S
BROKER-DEALER

TRUSTEE & DOCUMENT CUSTODIAN

SERVICER

LEGAL COUNSEL

FUND ADMINISTRATOR

TAX ADVISOR

P A S T P E R F O R MA N C E
American Homeowner Preservation Fund
Predecessor entity/ same management

Investor Returns

14.6%*- 2012

14.5%*- 2013
*Past performance is not indicative of future performance.

O UR T E A M
EXECUTIVES

Jorge Newbery
Founder & CEO

INVESTOR RELATIONS

Verria Kelly
Chief Operations
Officer

Gregory E.B. Smith


Investor
Representative

A win-win for all concerned. The owner gets to stay in


their house, the bank gets to avoid the expense of
foreclosure proceedings, and the property buyer gets
decent returns. Clever!
- Felix Salmon, Reuters

American Homeowner Preservation


is hoping to demonstrate that they
have better ideas to ameliorating the
foreclosure disaster."
- Joel Sucher,
American Banker

AS FEATURED IN:

| American Homeowner Preservation

Jhoel Deguzman
Investor
Representative

P R O J E C T E D S UMM A R Y SE R IE S 2 01 4B
TOTAL INVESTMENT
Class A
Class B
Class C
Acquisition Price of Assets
Reserve Account3
Due Diligence4
Legal, Trust Setup, Registrations

$30,000,000
$7,500,000
$7,500,000
$15,000,000
$28,830,000
$960,000
$180,000
$30,000

Value of Real Estate Collateral


Investment as % of Value
Total Debt
Investment as % of Total Debt

$60,000,000
50%
$90,000,000
33%

Forecast Annual Payments


Forecast Gains on Liquidations
Total Number of Assets

$2,160,000
$15,000,000
2,000

ANNUAL PROJECTIONS
GROSS REVENUE

$33,110,700

$6,914,363

Property Sale Capital Return


Property Sale Capital Gains
Modified Loan Sale Capital Gain
Modified Loan Sale Capital Return
Paying
Sale Capital Return
GROSSLoan
REVENUE
Paying Loan Sale Capital Gain
Property Sale Capital Return
Non-Performing Loan Sale Capital Return
Property Sale Capital Gains
Non-Performing Loan Sale Capital Gains
ModifiedIncome
Loan Sale Capital Gain
Payment
Modified Loan Sale Capital Return
TOTAL EXPENSES
Paying Loan Sale Capital Return
Fund
Administration
Paying
Loan Sale Capital Gain
Accounting
Non-Performing Loan Sale Capital Return
Fund
Legal
Non-Performing
Loan Sale Capital Gains
Document
Custody
Payment Income
Trustee
TOTAL EXPENSES
Servicing, File Legal, Borrower Incentives
Fund Administration
Management
Fee (AHP)
Accounting
NET REVENUE
Fund Legal
Document Custody
FUNDS
TrusteeTO INVESTORS
Servicing,
File Legal,
Borrower Incentives
Class
A Preferred
Return
Management
Fee
(AHP)
Class B Preferred Return

$5,000,250
$2,500,125
$5,000,250
$1,500,075
$4,500,000
$33,110,700
$900,000
$5,000,250
$10, 500,000
$2,500,125
$1,050,000
$5,000,250
$2,160,000
$1,500,075
$2,678,000
$4,500,000
$18,000
$900,000
$9,000
$10,
500,000
$9,000
$1,050,000
$12,000
$2,160,000
$30,000
$2,678,000
$2,000,000
$18,000
$600,000
$9,000
$30,432,700
$9,000
$12,000
$30,000
$2,000,000
$675,000
$600,000
$765,000
$30,432,700
$1,800,000

$2,499,750
$624,938
$2,499,750
$749,925

$27,192,700

$4,849,226

NET REVENUE
Class
C Preferred Return
EXCESS REVENUE
FUNDS TO INVESTORS

Reserve Release
Class AA Return
Preferred
Return
Class
Capital
Class BB Return
Preferred
Return
Class
Capital
Class CC Return
Preferred
Return
Class
Capital

$675,000
$7,500,000
$765,000
$7,500,000
$1,800,000
$12,192,700

EXCESS
REVENUE
Class
M (AHP)
Income

$27,192,700

$6,914,363
$2,499,750
$624,938
$2,499,750
$540,000
$749,925
$6,914,363
$18,000
$9,000
$6,750
$9,000
$540,000
$30,000
$6,914,363
$500,000
$18,000
$602,012
$9,000
$6,312,350
$6,750
$9,000
$30,000
$500,000
$602,012
$6,312,350
$1,463,124
$960,000

$1,463,124
$2,807,300
$4,849,226
$3,001,926

Reserve Release
$960,000
A
Return
Capital
$7,500,000
Reserve Account set aside to meet unexpected costs or costs of upkeep that may arise in the future
4Class B Return Capital
$7,500,000
Due Diligence is an investigation of potential acquisitions
Class C Return Capital
$12,192,700
$2,807,300
3Class

Class M (AHP) Income

ANNUAL PROJECTIONS

$3,001,926

FAQ
Q When I Invest In AHP, What Do I Own?
A When you invest in an opportunity with American Homeowner
Preservation you are purchasing a membership interest in one of
AHPs series LLCs. The series is the beneficial owner of mortgages
and real estate managed by American Homeowner Preservation
Trust.

Q How Long Are the Investments For?


A Within each series there are 3 classes from which investors may
choose. These classes are defined by the projected terms of one,
two and five years. One year is designated by Class A, Two years by
Class B, & Five years by Class C.

Q Where Does AHP Fit Into An Investment Portfolio?


A AHP is an alternative investment that integrates well with fixed
income allocations. The characteristics of AHPs offerings include
predictable steams of income with the benefits of above market
returns. Given the volatility of the bond market and the overall
downward trend of conventional fixed income vehicles AHP offers a
compelling fusion of returns and stability to any investment
portfolio.

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Q How Is Revenue Distributed?


A Revenue is distributed on the 10th of each month. After
payment of expenses and subject to any reserves, revenue is
distributed as follows:
1. Interest to each Class, based on investment balance for
each investor on the final day of the prior month.
2. After Interest are paid to each Class, any Excess
Revenue is distributed as return of Principal. Class A
Principal is returned first and, once fully retired, Class B
Principal is returned and, once fully retired, Class C Principal
is returned. Thus, prepayment of some or all Principal prior
to the end of expected term is possible for all Classes.
3. Once all investors have received payment of Interest and
return of their principal, 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 Interest and
returning Principal to investors as promptly and efficiently
as possible.

Q What Are The Risks?


A Mitigating risk for investors is a top priority at AHP. The series
is non-levered, backing investor principal with real assets under
management. Further, the portfolio is absent of securities subject to
market volatility and systemic risk. AHP is structured to hold all
assets in American Homeowner Preservation Trust, of which U.S.
Bank is trustee. If necessary, U.S. Bank could appoint a replacement
manager in the event AHP is unable to continue management.

| American Homeowner Preservation

H O ME O W N E R C A S E ST UD Y
CHALLENGES
Watching your property value plummet 85% and at the same time learning
you are being laid-off from your job of nearly 20yrs would be hard for many
CHALLENGES
of us to imagine. In 2002 this exact scenario played-out for Steven Gilbert, a
hard working delivery driver attempting to secure his future by investing a
rental property. At the time, the $200,000 price tag seemed to be a bargain
in what was a heady real estate market, and in what seemed like a great
investment.
Values had plummeted in this neighborhood and, by early 2014, the home
was only worth $32,000. This sounds extreme, but this collapse is common
in low to moderate income neighborhoods throughout the U.S. Left with few
options Steven began seeking bankruptcy protection in an effort to hold on
to the property he had worked so hard to buy.
Steven fell behind on the mortgage payments as he could not find a new job.
However, in 2013, he had obtained an insurance license and was again
employed. He applied for a modification through Ocwen, his servicer,
but was denied.
OUR SOLUTION

AHP Purchase Price: $9,600


OUR SOLUTION

Prior Servicer

AHP
SOLUTION

Extinguished

Principal
$195,418
$29,600
$165,818
Watching your property value plummet 85% andAHP
at the same time learning
Monthly Payment
$1,449
$320
$13,548 yearly
you are being laid-off from Prior
your Servicer
job of nearlySOLUTION
20yrs would beExtinguished
hard for many
Delinquency
$43,471
$2,000
$41,471
of us to
imagine.
In
2002
this
exact
scenario
played-out
for
Steven
Gilbert, a
Principal
$195,418
$28,800
$166,617
hard working
delivery driver attempting
to secure
his future by investing
a
Monthly Payment
$1,700
$320
$1,380
Up-Front
1-Year
20+
Years
rentalDelinquency
property. At the time, the
$200,000
price
tag
seemed
to
be
a
bargain
$43,471
$2,000
$41,471
IRR%
61%
40%
30%
in what was a heady real estate market, and in what seemed like a great
investment.
Up-Front
1-Year
20+ Years
IRR%
61%
30%
Steven was initially
skeptical, as
he thought our40%
offer sounded "too
good to
Values had plummeted in this neighborhood and, by early 2014, the home
be true." However, he was able to verify with Ocwen that we now owned his
was only worth $32,000. This sounds extreme, but this collapse is common
AHP Purchase
Price:
mortgage,
so he took
the$9,000
deal. The deal we made here seems charitable, but
in low to moderate income neighborhoods throughout the U.S. Left with few
if you look at the numbers, our first year return was greater than 50% and
options Steven began seeking bankruptcy protection in an effort to hold on
the next 20+ years are forecast at over 30%. Fantastically, our returns are
to the property he had worked so hard to buy.
often best with a consensual modification such as this, as we save the time
and costs
of foreclosing.
Steven
fell behind
on the mortgage payments as he could not find a new job.
However, in 2013, he had obtained an insurance license and was again
employed. He applied for a modification through Ocwen, his servicer,
American Homeowner
Homeowner Preservation
Preservation || 10
10
American
but was denied.

A ME R IC A N H O ME O W N E R P R E SE R V A T IO N
819 SOUTH WABASH AVENUE SUITE 606, CHICAGO, ILLINOIS 60605
AHPINVEST.COM

American Homeowner Preservation

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