Today we’d like to introduce you to Jorge Newbery.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
American Homeowner Preservation started in 2008 as a non-profit with a mission of keeping families at risk of foreclosure in their homes. Thousands of families sought our help, but we were only able to help a couple of hundred as banks made the process of achieving solutions very challenging. Thus, we transitioned to for-profit and started buying non-performing mortgages from banks. This proved much more scalable as we bought pools of distressed mortgages at significant discounts. We then shared the discounts with struggling families in the form of discounted settlements and reduced payments.
In order to raise capital to fuel our loan purchases we became a hedge fund in 2011. Then, in 2013, we became a crowdfunding platform. However, in both vehicles we were only able to accept investments from accredited investors, the wealthiest 3 – 5% of Americans. However, in 2016, the Securities and Exchange Commission qualified us to offer under Regulation A+, which allows almost anyone to invest in AHP online with a minimum investment of $100. At ahpfund.com, the 99% can help the 99%.
Overall, has it been relatively smooth? If not, what were some of the struggles along the way?
This has not been a smooth road at all. To go back in time a bit further, fifteen years ago I owned 4,000 apartments across the USA before an ice storm devastated my largest holding, the 1,100-unit Woodland Meadows Apartments in Columbus, Ohio. Over the next 18-months, I lost everything and ended up $26 million in debt. In 2007, when the housing crisis was just starting, I conceived AHP as a means to help families who were experiencing their own Woodland Meadows-type financial chaos.
As AHP grew, we started getting interest from institutional investors. However, they would often perform background checks which would reveal my past challenges. I would write long letters to try to explain what happened. Eventually, I wrote a book, Burn Zones https://www.amazon.com/Burn-Zones-Playing-Lifes-Hands/dp/1619613204/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=1505100178&sr=8-1 to share everything that transpired.
My challenges helped us devise pioneering borrower outreach and resolution strategies which have fueled AHP’s success. I can think like a debtor with their back against the wall because I was one. AHP provides struggling families simple straightforward solutions and a viable path to stay in their homes.
The elite are sucking the lifeblood out of country by ladening the majority of Americans with unaffordable debt. So, that’s what we do: help Americans crushed by unaffordable debt.
American Homeowner Preservation – what should we know? What do you guys do best? What sets you apart from the competition?
American Homeowner Preservation is for the people and by the people. In our current 2015A+ fund, we have had thousands of investments – from $100 to hundreds of thousands of dollars. And every investor gets the exact same deal. We do not provide more attractive terms for those investing more. You can call it investment justice or investment equality. We call it fair.
We buy distressed mortgages primarily in low- and moderate-income neighborhoods across the country. We focus on homes worth $75,000 or less, which most Wall Street hedge funds scorn. Thus, we can buy at very significant discounts. We have bought in every state on the union except Wyoming. We have even bought in Alaska, Hawaii and Puerto Rico.
We are proud to have achieved thousands of long-term solutions, both keeping families in their homes and putting vacant unwanted homes back into service.
With big banks, homeowners often have to litigate to get the best deal. With AHP, homeowners often remark that our process and terms are “too good to be true”: we give homeowners a great deal upfront – no litigation required.
What is “success” or “successful” for you?
Success is impact. We need to earn money to sustain our mission, but the financially-transformative solutions we provide real people are what count.
As we continue to achieve a strong record of social- and financial-returns, we need to attract more capital. Many Wall-Street funds raise billions to buy distressed mortgages. In our current fund, we are raising $50 million. We’d like to get to a billion without compromising on social or financial performance. Visualize the impact.
Pricing:
- $100 minimum investment.
- We have paid an annual return 12% to investors so far in our current 2015A+ fund. Distributed monthly.
Contact Info:
- Address: 819 S Wabash Ave. Ste. 606
Chicago IL 60605 - Website: https://www.ahpfund.com/
- Phone: 312-386-5678
- Email: jnewbery@ahpfund.com
- Instagram: https://www.instagram.com/ahpfund/
- Facebook: https://www.facebook.com/AmericanHomeownerPreservation/
- Twitter: https://twitter.com/ahpfund?lang=en
- Yelp: https://www.yelp.com/biz/american-homeowner-preservation-chicago
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