Frequently Asked Questions

How can I invest in your next fund?

Our new offering is now open. To learn more and invest, please click here.

How does American Homeowner Preservation work?

American Homeowner Preservation purchases pools of challenged mortgages from banks and other lenders and then offers 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.


AHP raises money to purchase these mortgages from investments of $100 or greater. Investors need not be accredited to invest in AHP.

How do I know if I am an accredited investor?

Individuals are considered accredited investors by the SEC if they can prove at least $200,000 in income for the past two years ($300,000 if married), or over $1,000,000 in net worth.


Non-Accredited investors do not meet the income and net worth definitions of an Accredited Investor. Non-Accredited investors are individual investors which are limited in how much they can invest to no more than 10% of the greater of the person’s, alone or together with a spouse, annual income or net worth (excluding the value of the person’s primary residence and any loans secured by the residence (up to the value of the residence)).


Investment in AHP was only open to accredited investors until June 2016. Now anyone can invest as long as they can meet the $100 minimum.

How is revenue distributed?

AHP and AHP Servicing pay investors a monthly distribution. After expenses are paid, distributions will be made in the following priority:

Pay investor their preferred annual return

Return to investors their invested capital

Remaining funds, if any, are profit to the company

What social impact can investors expect?

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.


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. 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.


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.

How did American Homeowner Preservation start?

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.


After transforming to a for-profit, American Homeowner Preservation was able to arrange viable long-term 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. 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. Today, AHP crowdfunds investments from non-accredited investors with a minimum investment of only $100.

What do the terms “Managing Member” and “Investment Manager” in the Directory mean?

Investments are in American Homeowner Preservation 2015A+, LLC (the “Company”).  “Managing Member” refers to an affiliate, American Homeowner Preservation Management, LLC, which under the terms of our operating agreement is responsible for exercising exclusive control over all aspects of the Company’s business. AHP Capital Management, our “Investment Manager,” is a similarly-affiliated company that has responsibility and authority for making investment and trading decisions on behalf of the Company.


For more information, please consult our Offering Circular.

How long are the investments for?

Under the terms of our Operating Agreement, AHP must try to return all of an investor’s money no later than the fifth (5th) anniversary following the investment. If for some reason AHP is unable to meet this obligation, investors might receive a return of their investment later than five years, or not at all. If AHP is profitable, as it has been and we anticipate will continue to be, it is very likely that investors will receive a return of their investment sooner than five years.

When I invest in American Homeowner Preservation, what do I own?

When you invest in American Homeowner Preservation, you are purchasing a membership interest in American Homeowner Preservation 2015A+ LLC. In turn, the LLC is the Beneficial Owner of mortgages and real estate owned by Series 2015A+ of American Homeowner Preservation Trust, of which U.S. Bank Trust N.A. is the trustee.

Are there fees for investors?

No, there are no fees to investors.

If I invest with American Homeowner Preservation and something happens to American Homeowner Preservation, what will happen to my investment?

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.

Are these investments risky?

By definition all investments carry some degree of risk. Similar to investing in the stock market, there are no guarantees.

How will I be updated about my investment?

You can track your investment activity on your dashboard at In addition, you will receive tax documents every year that you have a distribution from an American Homeowner Preservation investment.

Is there an investment minimum?

Our minimum investment is only $100. We want our investment opportunities to be accessible to as many people as possible.

What is the AHP homeowner outreach efforts process?

After we purchase a loan, letters and phone calls are forwarded to borrowers inviting them to submit a loss mitigation application. All applications received back are promptly reviewed and borrowers are promptly notified of their options.  Our approval letter typically has actual numbers that are approved for the particular borrower. These are based on formulas derived from the property value and existing loan terms. We share some of our acquisition discount with the borrower to make these options as attractive as possible. We require minimal documentation from the borrowers in order to make it easier for the borrower to proceed.


 If the borrower does not respond within regulatory timeframes, we may 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 mortgage 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. 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.

What have AHP’s returns for investors been historically? Have you ever not returned an investor’s principal or failed to pay returns?

When AHP operated as an open end hedge fund from late 2011 – late 2013, we returned over 14% annually to investors. Since we converted to issuing closed end funds in late 2013, we have never failed to pay monthly preferred return to investors nor have we been unable to return capital before the scheduled maturity. For 2015A+, we intend to pay investors a preferred return up to 12% per year on their invested capital. For our current AHP Servicing offering, we intend to pay investors a preferred return up to 10% per year on their invested capital.


Past performance is not necessarily indicative of future performance.

Who is responsible for servicing loans bought by AHP?

Loan servicing and outreach is generally handled by AHP Servicing LLC.  A third party, SN Servicing Corporation, is also used in certain cases.

How long does it typically take from acquisition of a note to modification, or, if a foreclosure occurs, acquisition of a note to foreclosure?

Historically, we have achieved a majority of modification and Deeds In Lieu resolutions in the first 90-days. Foreclosures take longer, averaging 12 – 18 months.

How are REO sold?

Our dedicated REO Asset Manager works with a network of investors and brokers to coordinate the maintenance, marketing, and sale of real estate owned properties. For more information, please call us at 866-AHP-TEAM and ask to speak with our REO Asset Manager.

What is the geographic spread like? Are you in judicial and non-judicial states?

We buy nationwide, including Alaska and Puerto Rico. We buy in both judicial and non-judicial states. However, we acquire primarily in the judicial foreclosure states, where the foreclosure timeline can take years but where we can buy the loans with the greatest discounts.

Are investments liquid? What if I need to take my money out before my term is up?

We offer best-efforts liquidity. The actual terms vary depending on the offering in which you invested. Following is a general overview:


At any time after purchasing a Class A Interest, an Investor may request that the Managing Member purchase, or arrange for the purchase, of all or a portion of the Investor’s Class A Interest. Upon receipt of such a request, the Managing Member must use commercially reasonable efforts to arrange for the purchase, although there is no guaranty that the necessary funds will be available or that a buyer can be found. If the Managing Member is not able to purchase or arrange for the purchase of the Class A Interest, the Investor may either rescind or maintain the request.


In seeking to accommodate a request from an Investor, the Managing Member is not required to do any of the following: (i) purchase the Class A Interest for its own account; (ii) contribute money for the purchase; (iii) borrow money or dispose of assets; or (iv) take any other action the Managing Member believes would be adverse to the interests of the Company or its other Members.


If all or a portion of an Investor’s Class A Interest is purchased pursuant to the Investor’s request, the Investor’s rate of return may be reduced below the target preferred return. Since this varies by offering, please refer to the terms in the Offering Statement or call us at 866-AHP-TEAM to speak with one of our Investor Relations Specialists.


If more than one Investor asks the Managing Member to purchase or arrange for the purchase of a Class A Interest, the Managing Member will consider the requests in the order received.

Are there any fees associated with disbursements of returns?


How are returns disbursed to investors?

All returns are paid on a monthly basis, typically via direct deposit.

Are returns guaranteed?

AHP is not able to guarantee returns. There is a predetermined return paid to investors monthly provided funds are available. As long as we have been using this format there have always been sufficient funds available. If funds were not available one month, we would distribute what is available and the unpaid preferred return would accrue and be paid in the next month in which adequate funds were available.

Are most of the properties AHP purchases in low-income neighborhoods? Are these properties really salvageable?

When we buy pools of mortgages, we typically agree to acquire everything the seller wants to sell, provided that the pricing is agreeable, We buy nationwide, from Anchorage, Alaska to San Juan, Puerto Rico and from Lancaster, California to Bridgeport, Connecticut, and hundreds of cities in between. By offering financially transformative solutions to struggling families, we can often achieve strong financial and social returns.


That said, not all of the mortgages we buy work out and we do lose money on individual assets. Some properties or situations will not end up being “salvageable”. However, as we acquire in large pools, we historically have gained on significantly more than we have lost. This is how we have remained successful despite the occasional loss.