American Homeowner Preservation (AHP) Fund

[Mark S.]

I stumbled across the American Homeowner Preservation (AHP) Fund ad on a podcast.  Upon going to their website and researching further, it appears it's a hedge fund that buys discounted mortgages and supposedly tries to let homeowner's stay in their homes (and obviously make a profit) in doing so.  This is now open to non-accredited investors (as well as accredited) for as little as $100.  They keep any profits above 12% and it appears they charge about a 2% fee plus a couple other nonsense items (based on my very brief skimming through some info).  Anyone familiar with AHP?  Thoughts?

[Mark S.]

Fund re-opens for investment tomorrow at 12:00p.m. EST.  Email went out about this today.

[Matthew Rosenthal]

Does anyone have any idea how to calculate or measure risk on something like this?  is their some metric that is commonly used?

[Akash Sky]

I'd like to share an update as well.  I invested $240 initially (so that I could receive a measly $2 per month).  So far, I've been getting about that much each month.  I've also been reinvesting the proceeds into the fund.  It's been pretty interesting to see my monthly distributions grow each month by a few pennies.

I'm still a bit hesitant to invest more into this fund due to how their fund is legally structured and all the power they have over investors.  That being said, I do think I will put in another $740 into the fund.  After all, who DOESN'T want a free cheese pizza every month?

[Andy N.]

Well its working.  My large pizza was deposited!

[Matthew Rosenthal]

Did they take taxes out first?

[Joseph M.]

Andy N. if you put in a little more maybe you can get some toppings on that pizza

[Akash Sky]

Originally posted by @Matthew Rosenthal:

Did they take taxes out first?

Nope, its straight cash.  This means that they will give you a form at the end of the year for taxes to my knowledge.  Also, I'm pretty sure it would be taxed like interest income (meaning high tax rate).

[Bob Malecki]

Yes @Akash Sky that is considered ordinary income

[Andrew Frishman]

Any Updates, from investors in AHP?   I am interested in investing.  Just wanted to hear from individuals with a history with this fund?

[Steve Bretzke]

An interview with the founder of AHP can be found here: https://youtu.be/ZvKue-rq4y8 I've found it to be very informative.

[Matthew Rosenthal]

I have 2 separate accounts with them. One I transferred funds from a self directed IRA and 1 cash.

I have what I would consider non trivial amounts of money.  much more than getting a pizza each month.

1 account i've had longer than 1 month and the monthly dividends were re-invested as i elected.  the other account is not a month old yet so haven't gotten dividends but seems to be working so far.

I think they don't take any taxes out but will provide more detail middle of next month.  but i believe this will be taxed at my normal income tax rate when i do pay my taxes.  

[Matthew Rosenthal]

I'm not sure why they felt the need to make this video but it really cracked me up - https://www.youtube.com/watch?v=rzv_spbjg-0

[Andrew Frishman]

Any more feedback?...thinking of pulling the trigger on this investment.

[Matthew Rosenthal]

Still going well. Got dividends re-invested again. Pretty smooth and zero effort required. 

[Andrew Frishman]

Correct me if I am wrong...

This is a 5 year commitment...

With AHP the investor doesnt have access to the initial investment for 5 years.

Can the investor access the dividens?,..when, and how much of the investment is liquid each year?

Thanks for feedback.

[Steve Bretzke]

Not completely liquid, but they will work to get your investment back early if you need it. I've chosen not to reinvest dividends and they are directly deposited into my bank account each month. Here's a video where the founder talks about liquidity: https://youtu.be/ChORxCEyVqc

[Matthew Rosenthal]

As they describe it, it is not a 5 year commitment. 

If you want to withdraw your initial investment you can request that and they will use their best effort to return your funds within 30 days. They may or may not be able to get it. Sounds like they have never not been able to return the money. 

[Mark S.]

Their videos and "You got paid!" monthly emails crack me up. It's almost worth throwing a few bucks in there just to get a good monthly chuckle.

[Sai Gudlavalleti]

I agree with @Mark S. lol. I have a small amount in there and so far so good (since June). 

[Vivek Khoche]

@Sai Gudlavalleti- Have been a part of similar entities  in my previous life. I would be keen on watching the first income $1 after you recover your $100 principal @12% + Fees.

Good Luck

Vivek

[Matthew Rosenthal]

@Vivek Khoche I'm confused by your statement.  What do you mean?

[Vivek Khoche]

@Matthew Rosenthal- Nothing but good luck

Vivek

[Matthew Rosenthal]

FYI They just posted their Semi Annual report

https://www.sec.gov/Archives/edgar/data/1667307/000168316817002618/american_1sa-063017.htm?utm_source=Master_List_Oct_25&utm_campaign=c77bc94612-EMAIL_CAMPAIGN_2017_05_17&utm_medium=email&utm_term=0_b9a04f0907-c77bc94612-524028073&mc_cid=c77bc94612&mc_eid=b84f36f24a

[Andy N.]

What are everyones thoughts so far?

[Matthew Rosenthal]

Still seems good to me.  

Monthly distributions get sent on the 10th so might be better to get people's opinions and thoughts tomorrow after they get paid!