Distressed Mortgage Notes Anyone Can Invest In

Kenyon Meadows MD interviews Jorge Newberry CEO and founder of American Homeowner Preservation (AHP). AHP raises money from investors and buys up distressed mortgages from banks at deep discounts often in low income neighborhoods. They then work with the borrower to come up with a financial solution to keep them in their home. This often includes writing off several thousand dollars of debt, lowering interest rates and extending the term of the loan. Because the mortgage are acquired at such deep discounts, American Homeowner Preservation has the ability to offer these substantial modifications while still paying attractive returns to investors in the 12% range. Additionally the investment minimum is just $100, making it an incredibly affordable way to participate in in this alternative real estate asset while stabilizing neighborhoods.

We talk about the lingering aftermath of the mortgage crisis, and delve into a case study of a borrower who was able to stay in their home after an AHP modification.

Real Estate Crowdfunding 101

real estate crowdfunding

It is predicted that in 2016 crowdfunding will account for more funding than venture capital exceeding more than 34 billion dollars. This represents tremendous growth from less than 1 billion dollars in 2010.

Most people these days have some basic familiarity with crowdfunding platforms like Kickstarter and Indiegogo. These rewards based sites offer consumers the chance to partially fund projects of interest to them. Get enough participants to chip in, in return for perks or to pre-order your finished product, and you can get your project fully funded and off the ground.