Impact Investing and American Homeowner Preservation, What’s the connection?

Published on November 1st, 2013 by Saeed Baeshen

The Global Impact Investing Network defines Impact Investing as
 ”Investments that aim to solve social or environmental challenges while generating financial profit. Impact investing includes investments that range from producing a return of principal capital (capital preservation) to offering market-rate or even market-beating financial returns. Although impact investing could be categorized as a type of “socially responsible investing,” it contrasts with negative screening, which focuses primarily on avoiding investments in “bad” or “harmful” companies – impact investors actively seek to place capital in businesses and funds that can harness the positive power of enterprise.”
What does this all mean when talking about American Homeowner Preservation?
When AHP first started five years ago in Cincinnati, Founder and CEO Jorge Newbery wanted to find a solution to the foreclosure crisis working one-on-one with homeowners and their lenders.  Today, headquartered in Chicago, AHP is working with investors to purchase pools of discounted mortgages to help keep families in their homes while also generating strong returns.

CEO Jorge Newbery homeowner documents in the Chicago office

The process begins with investors investing with AHP to purchase pools of discounted mortgages from banks. Once the full amount of the pool is raised investors begin to receive returns on their investment based on the Class they chose. Then AHP works with homeowners to find a viable solution for them. Solutions may include loan modifications, short sales, or a Deed in Lieu.
Although there are many working parts, AHP is able to provide an investment opportunity to investors that generate above-market returns and also a measurable social impact. The AHP solution to the foreclosure crisis offers aninnovative and multifaceted approach to decision-making on investments, which can offer investors robust and inclusive financial gains as well as social benefits. AHP is able to offer measurable social and financial returns to investors aligning it with Global’s definition of Impact Investing.
AHP’s efforts thus far has helped more than 400 families stay in their homes and extinguished more than $40 million in negative equity. The current offering of 249 assets is being acquired for $5,660,000 and has an estimated value of Real Estate Collateral at $14,772,615.
To learn more about our process and investment opportunities visit

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