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?

[Amanda K.]

@Paul Chapey  I also haven't received April's distribution. I'm going to inquire today too.  Can you let us know if you get any response?  Thank you!

[Paul Chapey]

@Amanda K. About an hour after posting, I received an email stating that I was paid. Payment isn't showing on the portal yet.

[Amanda K.]

@Paul Chapey  I just got that email too.  But on mine it says March's Distributions have been paid. I'm wondering if that was a typo.  It's also not showing up on the portal too. 

[Paul Chapey]

@Amanda K. Good catch. My email also says March. I didn't notice that. Late tax forms without communication,  late payment, email error and no portal update — inexcusable and concerning. 

[Bob Malecki]

Hey @Amanda K. & @Paul Chapey, get a room! ;-) 

Your comments are refreshing for me, as a fund manager, to remind me that we can't let subscriber communications suffer in the midst of a major economic disruption. Small private equity funds such as AHP and my companies run lean, so keeping all of the operational plates spinning can be challenging at times. I'm sure AHP will get back on track as we get through this pandemic!

[Mark S.]

March’s distributions have been paid - they get paid in April.  Looked at my last email received in March and it said February distributions were paid.  We get paid on the 10th of each month for the prior month’s distributions.  Nothing posted to the portals yet, but I’m guessing might take an overnight cycle and will post tomorrow.  

[Paul B.]

My March distribution on the second fund (10%) was paid a few days ago, but the amount was slightly less than expected. It's supposed to go up a bit each month, since I have it set to reinvest the distribution. 

I haven't received anything on the first fund (12%) and usually that one shows up on the 12th of the month. 

[Paul Bommarito]

Interesting. I am still not seeing any distribution for my Servicing investment (10%) in my portal or bank account. I find it odd that they would send out the payment emails without confirming that it was at least showing in everyone's portal.

[Mark S.]

Servicing (10%) distributions are showing on my dashboard.   AHP Fund 2015A+ (12%) distributions are not showing on my dashboard, nor have they been paid to my bank account.  This is really odd because usually it’s the opposite; 12% pays like clockwork and 10% is delayed a couple of days.  This is starting to become more concerning, especially as the amount I have invested with them continues to grow and I’m considering investing even more with them. Not good.  

[Paul Bommarito]

@Mark S. I spoke with Michael today at AHP and received an email from them. They said the distributions were delayed as a result of applying an IL state tax withholding due for investors. It sounded like there was a miscommunication, which resulted in the emails being sent out even though the payments had not fully been processed yet. They also told me the Servicing Fund K-1s are scheduled for be uploaded by the end of next week. Trying to give them a little grace right now as I am sure they are dealing with a lot on their end as well due to COVID, but I have had good communication with them the past couple days, which I appreciate. 

[Robert McKay]

My distribution was short (less than the normal amount) this past month.  Did anyone else have that experience?

[Paul Bommarito]

@Robert McKay I was told that it is due to an IL state tax withholding that was due for all investors. This is also apparently what caused the delay in the payment this month.

[Mark S.]

@Robert McKay, yes, I believe it was for IL tax withheld for those of us who chose option 1 (to be included in their IL filing).

[Bruce Coleman]

@Paul Bommarito

How are you getting a response from AHP? I have received emailed responses days later, but seldom have I received a phone call.

[Bob Malecki]

Does AHP have an investor portal or just email/phone for fund subscriber communications?

[Paul Chapey]

AHP has an investor portal. It's decent.

AHP needs to communicate more frequently and effectively with investors. They're always behind problems and glitches. They should always be in front of any difficulties, not playing catchup with silly excuses.

They're not well buttoned up at all. Investors want transparency, the more the better.

[Paul Bommarito]

@Bruce Coleman I have typically always been able to get through to someone when I call the office number and I ask to speak to investor relations. Michael has always done whatever he could to try and help me.

To @Paul Chapey’s point, I really wish they would share more frequent updates about what they are actually doing. It is a black box and whenever I have asked about their actual effectiveness at keeping borrowers in their homes/the performance, I never receive an answer. It definitely seems like they have added a significant number of senior people to help build out the servicing business, so I hope they are successful and provide better communication soon.

[Jason Monaco]

is everyone still getting paid their monthly distribution? is it still 10%?

[Mark S.]

@Jason Monaco, yes and yes so far.  Why do you ask?

[Jason Monaco]

@Mark S. 

I've been watching them for awhile and wanted to invest but I didn't know how the virus impacted them. Thanks for your feedback.

[James Mc Ree]

Very consistent payments.  I don't see a virus impact in my payments.

[Jason Monaco]

I invested $1,000 with them as a trial run in June and this month I should get my first distribution. I called to see on what date I can expect the payment to process and they said the 9th (for accounts that are set up for reinvestment). the 9th came and went and I saw no changes to my account. I called again on the 13th and they said the payments would be processing later that day and I could expect to see my account reflect this on the the 14th. Today I still did not see any change to my account....Has anyone else received their distribution for this month yet? I have another $100,000 that I wanted to invest with them if things went well but I'm not feeling optomistic being told things that haven't happened.....just looking to see how everyone else is doing. Thanks

[Paul Chapey]

I requested a partial redemption on March 23. Initially, I was told it would take 60 days. I'm still waiting and have yet to get even an estimate of when I can expect the return of these funds.

[Duke Giordano]

Sounds like they are running into hard times, always seems like their solvency was a bit of a question and whether they were truly profitable.

[Amanda K.]

@Jason Monaco I just received my distributions today. The same amount I've received each month. They've been coming in a day or two later than usual, but I'm assuming it is due to covid.