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?

[Kevin Coggins]

Quote from @Andrew Frishman:

Just some feedback for the group regarding AHP fund investment.

I Invested in AHP fund. November of 2020

I have been requesting my funds back since 07 / 2023 (see below)

I haven't received a distribution on my investment since July /2023.

Every time i call to get my funds returned, they say..."sometime next month", for the last 4 months!!.

 They've been doing monthly updates via webinar and the info you're being given definitely isn't accurate. Basically, they have no liquidity and are working to resolve this (like they have been for awhile now). 

[Mark S.]

Quote from @Kevin Coggins:

Quote from @Andrew Frishman:

Just some feedback for the group regarding AHP fund investment.

I Invested in AHP fund. November of 2020

I have been requesting my funds back since 07 / 2023 (see below)

I haven't received a distribution on my investment since July /2023.

Every time i call to get my funds returned, they say..."sometime next month", for the last 4 months!!.

 They've been doing monthly updates via webinar and the info you're being given definitely isn't accurate. Basically, they have no liquidity and are working to resolve this (like they have been for awhile now). 

 How is that different than the information they’re providing on the investor webinars?  Seems pretty spot-on to me. 

[Chris Seveney]

@Kevin Coggins

My guess is there is no resolution. When we looked at the loans that remained which they were selling (we run a note fund) many were worthless as they were sold at tax sale or had taxes owed greater than property values.

Many of the assets they acquired were in very bad and poverty stricken areas (which they have another fund called skid row…) so tells you types of assets they invest in.

This sucks for someone like me because this puts a huge black eye on the rest of us

[James Hammett]

Anyone watch the December Webinar?

[Jason Monaco]

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

[James Hammett]

Yeah its disappointing.  I was wondering a few months ago when he mentioned some difficulty getting the loans back from the lender, after they initially paid it back. (What was going on?).

Though it seem like Murphy is hitting them with a vengeance, thought my confidence in them is less  now.  (It reminds me of a tenanant that I had difficulty with.... they always had murphy show up to mess with them)

I have about 12k invested, its been long enough that they have paid back about half.  (but in theory I should get the original back too).

[Chris Seveney]

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

[Chad U.]

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

Interesting to hear that they are claiming that a lender sold all of their loans and kept the excess funds. Does sound a tad suspect.

I am hearing that AHP is still collecting payments from borrowers yet not remitting them to their clients that they are servicing on behalf of. Also there are some UCC filings against them and putting liens on their accounts receivables. I also know of several law firms who have not been paid in over a year then will not work for them any longer.

[Chris Seveney]

Quote from @Chad U.:

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

Interesting to hear that they are claiming that a lender sold all of their loans and kept the excess funds. Does sound a tad suspect.

I am hearing that AHP is still collecting payments from borrowers yet not remitting them to their clients that they are servicing on behalf of. Also there are some UCC filings against them and putting liens on their accounts receivables. I also know of several law firms who have not been paid in over a year then will not work for them any longer.

 I am speculating but I am curious if telling investors to wait a few years is to hope to avoid any investors from filing a lawsuit?

There was also a post about preREO on BP recently which I believe is also under Jorge and those comments also were not very positive. 

[Carlos Ptriawan]

Quote from @Akash Sky:

i was thinking about investing a hunded dollars into this.  The one thing i don't like is how much power they have over you.  Basically ,they have the right to reject your capital and essentially "pre-buy" you out.  So, lets say they hit a huge series of grand slams and are returning 20% / year annualized.  The company can buy you out and just keep their 20% / year.  Basically, you are taking a lot of risk and have limited upside.  I don't think its that great of an investment, but I like the concept and the ability to diversify into notes.

almost  all syndication investment is actually structured like that ? why they have to give to you while you don't do anything ?

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Chad U.:

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

Interesting to hear that they are claiming that a lender sold all of their loans and kept the excess funds. Does sound a tad suspect.

I am hearing that AHP is still collecting payments from borrowers yet not remitting them to their clients that they are servicing on behalf of. Also there are some UCC filings against them and putting liens on their accounts receivables. I also know of several law firms who have not been paid in over a year then will not work for them any longer.

 I am speculating but I am curious if telling investors to wait a few years is to hope to avoid any investors from filing a lawsuit?

There was also a post about preREO on BP recently which I believe is also under Jorge and those comments also were not very positive. 

this sounds like a massive BK in the offing.

[Carlos Ptriawan]

Quote from @Chris Seveney:

@Kevin Coggins

My guess is there is no resolution. When we looked at the loans that remained which they were selling (we run a note fund) many were worthless as they were sold at tax sale or had taxes owed greater than property values.

Many of the assets they acquired were in very bad and poverty stricken areas (which they have another fund called skid row…) so tells you types of assets they invest in.

This sucks for someone like me because this puts a huge black eye on the rest of us

 Pretty much so Chris, thing is this fund work in black box secretive operation…

never ever never invest at crowdfund like this , all end up disappointed 

[Jason Monaco]

do we as investors have any recourse? is there anyway to get our money back other then wait around to see if this thing works out and wait to see if Jorge returns the investor funds?

[Jason Monaco]

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

 They did mention the company but I don't remember it exactly. There were two companies involved.

[Chris Seveney]

Quote from @Jason Monaco:

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

 They did mention the company but I don't remember it exactly. There were two companies involved.

 If you list the company we could probably provide a lot more insight. details are important when the ship is sinking (or has already sunk but you didnt realize it). 

[Mark F.]

Oak Harbor Capital is the parent company of the lender name I can't remember, but it started with a C and had a funny name, and they were formed in 2022 or 2021. Apparently they (Oak Harbor or the subsidiary) had multiple SEC violations and changed their name but this wasn't discovered by the lawyers until last month.

Apparently AHP requested a mutual accounting firm audit their books as there's a dispute on AHP overpaying their loan. The lender didn't agree so AHP said they can hire a neutral accounting firm and AHP would pay for it and the lender has gone dark. My opinion- this lender owned by Oak Harbor is insanely shady and going to duck opening their books. Not only do they have about 3 mill of AHP Capital, they have about 10 mill in collateral of AHP assets (mortgage note collateral files) stored at a bank which obviously they won't hand over.

https://oakharborcapital.com/

[Chris Seveney]

Quote from @Mark F.:

Oak Harbor Capital is the parent company of the lender name I can't remember, but it started with a C and had a funny name, and they were formed in 2022 or 2021. Apparently they (Oak Harbor or the subsidiary) had multiple SEC violations and changed their name but this wasn't discovered by the lawyers until last month.

Apparently AHP requested a mutual accounting firm audit their books as there's a dispute on AHP overpaying their loan. The lender didn't agree so AHP said they can hire a neutral accounting firm and AHP would pay for it and the lender has gone dark. My opinion- this lender owned by Oak Harbor is insanely shady and going to duck opening their books. Not only do they have about 3 mill of AHP Capital, they have about 10 mill in collateral of AHP assets (mortgage note collateral files) stored at a bank which obviously they won't hand over.

https://oakharborcapital.com/

I would be curious to hear oak harbors position... To me it appears there is a lot of smoke being tossed around to try divert certain peoples attention.  

again, no dog in this fight, but as someone who runs a debt fund I am pretty sure I can piece together what occurred based on reading SEC filings and the above. 

[Chris Seveney]

Quote from @Chad U.:

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

Interesting to hear that they are claiming that a lender sold all of their loans and kept the excess funds. Does sound a tad suspect.

I am hearing that AHP is still collecting payments from borrowers yet not remitting them to their clients that they are servicing on behalf of. Also there are some UCC filings against them and putting liens on their accounts receivables. I also know of several law firms who have not been paid in over a year then will not work for them any longer.

 When would someone else be able to sell your assets? Hmm. 

I wonder in situations if you received a line of credit from a lender who secured the line against a specific set of assets, and the borrower defaulted - would that agreement give the lender the ability to liquidate those assets?

In the case where those assets did not cover the costs for the line, would that lender also have a clawback clause that allows them to claw at other assets?

Would those situations allow the assets to be sold???

[Chad U.]

Quote from @Chris Seveney:

Quote from @Chad U.:

Quote from @Chris Seveney:

Quote from @Jason Monaco:

I listened to the webinar....more bad news. supposedly the company that was handling the pay off of the loan sold more assets than they should have and kept the extra moneys made on the sales. Sounds like AHP is in for a long nasty legal battle to get some of those assets back so they can be turned into money for AHP to repay investors. Jorge told us don't expect anything for awhile possibly a couple years...I have myself personally have $50,000 invested with them and I doubt I will ever see it again. Fingers crossed Jorge sticks it out for us and makes something happen. I had a feeling something was going to go wrong when Jorge started to open up all these other Funds...to many irons in the fire I guess.

 Curious if they named that company as they were the servicing company - so they were the ones who would be handling payoffs.... 

@Chad U. - have you heard anything about this? Seems suspect to me. 

Interesting to hear that they are claiming that a lender sold all of their loans and kept the excess funds. Does sound a tad suspect.

I am hearing that AHP is still collecting payments from borrowers yet not remitting them to their clients that they are servicing on behalf of. Also there are some UCC filings against them and putting liens on their accounts receivables. I also know of several law firms who have not been paid in over a year then will not work for them any longer.

 When would someone else be able to sell your assets? Hmm. 

I wonder in situations if you received a line of credit from a lender who secured the line against a specific set of assets, and the borrower defaulted - would that agreement give the lender the ability to liquidate those assets?

In the case where those assets did not cover the costs for the line, would that lender also have a clawback clause that allows them to claw at other assets?

Would those situations allow the assets to be sold???

And the plot thickens....

I would imagine there is "in the event of default" language in the collateral assignment agreement that states what the lender can do to recoup their funds.  And I'm sure one of the clauses is to sell said loans pledged.  This would be illegal unless the loans were already assigned over to the Lender and held in escrow or trust at custodian.  However, most lenders won't lend more than 50% of the collateral value (meaning they have double the amount pledged), so it could be that the lender is selling more than they are owed. 

[Akash Gaur]

Quote from @Jason Monaco:

do we as investors have any recourse? is there anyway to get our money back other then wait around to see if this thing works out and wait to see if Jorge returns the investor funds?

To all pro investors and to echo @Jason Monaco - Is there any recourse for individual investors ?

Given how majority of other crowdsourced platforms have gone downhill in the last few years, I should have been not surprised at the Dec webinar announcement. But, I was.  

Something is not adding up and the SEC filings at the EDGAR database for both AHP fund 2015 and AHP Servicing are out of date. Specially troubling is the lack of clarity on bankruptcy protection for all their funds

[Chris Seveney]

@Akash Gaur

Unfortunately the chance of recourse is very little unless it’s found they were fraudulent.

You are correct that they never submitted their 2022 audited reports or semi annual reports according to the sec website which is a major red flag.

[Sam Wilson]

This is disheartening. I haven't seen any information about webinars/ updates etc. I just saw them go dark and that was it. I've tried to contact for 3 weeks now, with no reply. Anyone have a link for another scheduled webinar or a place to sign up for any communications?

[Jason Monaco]

At what point can we consider the investment lost. Does AHP have to officially give out a statement that says our investment is worth 0 or by them going silent and not being able to be contacted does that count as a lost investment? Can they keep sending out yearly K-1's to prolong this for a couple of years?

[Chris Seveney]

@Jason Monaco

Question for your cpa but if you were to write it off and did get something then you would have to claim that as income so probably best to follow whatever they give you for a k-1

Did they give out k-1’s last year? Did they file their tax return last year (do you know).?

[Sam Wilson]

We invested via a retirement account. The K1 was irrelevant...was. As of now, we have zero documents in the portal. EVER. Not sure where they went.

I saw what they were doing as bulletproof- as in- buying notes for pennies on the dollar, working out most of them for massive discounts to borrowers and splitting the returns with investors. 

What can go wrong? A lot obviously. The devaluing of those notes by fixing the interest so low seems to be the real kicker that made the fund's intrinsic value decline, performing or not no one wants them on the secondary market. Sound right?