The mortgage crisis might seem like a distant memory, but in some ways, American families are more vulnerable than ever. More than 83,000 new families are impacted by foreclosure every month. Nationwide, one in every 200 homes goes into foreclosure.
Jorge Newbery is out to change that. His company, American Homeowner Preservation (AHP), buys distressed mortgages in mid- and low-income neighborhoods that others shun, and then works to keep families in their homes. Even with its hands-on approach and social mission, AHP has turned a healthy profit—returning an average 12% to investors since 2011. AHP was qualified to offer under Regulation A+ offering in May 2016, allowing anyone to invest as little as $100. We spoke with Newbery recently about AHP’s progress as it nears its 9-year anniversary.
What is the situation in the low- and moderate-income neighborhoods you work in?
There are neighborhoods in the suburbs that are predominately white and have had significant real estate appreciation. But you go into low and moderate minority neighborhoods and there’s been little or no appreciation. The only homes that are dropping in value are those that are under $50,000. These neighborhoods are just left behind. It’s a nationwide problem. But for low- and moderate-income families, jobs are really the big issue. There’s a high unemployment rate despite what the statistics are saying.
How does American Homeowner Preservation help address that?
We’re a tiny part of the solution. We can buy the mortgages at a fraction of the price. The big name hedge funds don’t want to touch these mortgages, and that creates an opportunity for us to buy at a discount. But it’s only a component of the solution, it’s not addressing the real core, which is a lack of jobs and economic opportunities.
Give me a typical example.[…]
The full and original article can be viewed on Locavesting.com
Visit the Invest With Values - Resource Directory to access leading investor information, opportunities, organizations, events, groups and tools.