American Homeowner Preservation 2015 April 2

2015

A M E R I C A N H O M E O W N E R P R E S E R V A T I O N

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A H P I N V E S T . C O M ( 8 0 0 ) 5 5 5 - 1 0 5 5

11 | American Homeowner Preservation

D I S C L A I M E R

*Past performance is not indicative of future performance. This investment entails a high degree of

risk. No returns are guaranteed.

This communication is intended only for those persons with an in-depth understanding of the high-risk

nature of alternative investments. The communication is general in nature and should not be

considered a full statement of the facts pertinent to this message. The investments shown herein may

not be suitable for you. This communication is intended for, and specific to, the person to whom it was

sent. The document may not be distributed in either excerpts or in its entirety beyond the intended

recipient. American Homeowner Preservation, LLC. ("American Homeowner Preservation") will not be

held responsible if this document is used or is distributed beyond its initial recipient or if it is used for

any unintended or unauthorized purpose. All investors should make their own determination of whether

or not to make any investment, based on their own respective independent evaluation and analysis.

To the knowledge of the sender, this document and the relevant pages herein are: (i) current as of the

date of distribution; (ii) subject to change without notice; (iii) directed solely at eligible accredited

investors; (iv) not directed at, may not be suitable for, and should not be relied on, by general retail

clients. American Homeowner Preservation does not do any of the following: (a) produce in-house

research; (b) make recommendations to purchase or sell specific securities or provide investment

advisory services. All prospective investors are highly encouraged to retain and consult with their own

respective independent legal counsel, tax and financial advisers, investment advisers and accountants.

By reading this communication, you hereby acknowledge that you are an accredited investor. If you are

a general retail client, then this communication is not intended for you. Alternative investments may

not be suitable investments for you. You may not possess the sophistication to rely on the contents of

this communication, and in such case, you should either shred or return the communication and

document to American Homeowner Preservation. Neither American Homeowner Preservation nor any

of its directors, officers, employees, representatives, affiliates or agents shall have any liability,

howsoever arising, for any error or incompleteness of fact or opinion in, or lack of care in its

preparation or publication, the material and communication herein.

American Homeowner Preservation, LLC is not a registered broker-dealer, funding portal, or

investment advisor and does not conduct any activity that would require such registration. Equity

securities are offered through WealthForge, LLC, a Virginia limited liability company (WealthForge),

which is a securities broker/dealer registered with the U.S. Securities and Exchange Commission and a

member of the Financial Industry Regulatory Authority, Inc. Individual personnel of American

Homeowner Preservation, LLC are registered representatives of WealthForge. WealthForge has

developed a business continuity plan on how they will respond to events that significantly disrupt

business. WealthForge is located at 6800 Paragon Place, Suite 237, Richmond, VA 23230, tel: (804)

308-0431.

American Homeowner Preservation | 4

AMERICAN HOMEOWNER PRESERVATION

A W I N N I N G S O L U T I O N

American Homeowner Preservation generates high-yield

distressed mortgage investment opportunities which

positively impact families and communities. By

purchasing sub-performing mortgages at significant

discounts, AHP can provide above-market financial

returns to investors. Simultaneously, struggling

families receive transformative modifications to

stay in their homes with affordable payments and

discounted principal balances.

AHP offers membership interests in series LLCs which

are collateralized by first mortgages secured by real

estate. The debt is often purchased at 50% or less of the

current value of the underlying properties. The

offerings are often geographically diverse, frequently

including assets from many states of the union, from

California to New York and Alaska to Puerto Rico and

many places in between. Assets are purchased into

American Homeowner Preservation Trust, of which U.S.

Bank is the Trustee. Resolutions are achieved by

motivated professionals working at a branch office of

Security National Servicing in the same location as AHP.

AHP was founded in 2008 in Cincinnati, Ohio with a

mission of helping homeowners at risk of foreclosure.

Over time, AHP evolved into an investment fund

manager purchasing first mortgages secured by homes

in low- to moderate- income neighborhoods as well as

loans with issues such as litigation, compliance or

documentation. By executing a socially-responsible

strategy focused on the fringes of the market where

asset prices have not been distorted by loose-money

policies, AHP is able to offer investors

a potent combination of security, high-yields,

and social impact.


MORTGAGE CRISIS

In 2007 the U.S. economy entered a mortgage crisis causing panic and

global economic turmoil. Americans lost their homes in numbers far

outweighing the capacity of institutions to respond, even with

assistance from the federal government.

Unprecedented monetary measures were taken by central banks

across the globe which pushed rates and bond yields to record lows.

Consequently, anyone seeking safe returns within income

instruments has been left with vehicles offering paltry returns.

DECLINING YEILDS

Over the past 30-years, bonds delivered investors strong annualized

returns averaging over 8%. However, the 10-year Treasury yield that

topped 15% in the early 1980s now offers around 2% in 2014. With

yields at these levels, options for investors seeking reliable greater

returns in their portfolio have been limited. Further, in an

environment of consistently low yields, financial institutions face

increasing pressure to produce results their investors want.

10 YEAR U.S. TREASURY VS. MORTGAGE DEBT

THE PROBLEM


AHP HAS DELIVERED DOUBLE DIGIT RETURNS

At American Homeowner Preservation, our solutions driven

culture and transparent strategies leave us well equipped to

address the various challenges the income markets have

presented us.

AHPs heavily collateralized, non-levered issues generate the

returns many investors have needed. AHP enables investors to

earn returns comparable to the equity markets within a stable

and risk- averse model. However, providing a solution for the

anemic fixed income markets is only part of the solution.

PRESERVING NEIGHBORHOODS & COMMUNITIES

Among the most daunting byproducts of the economic crisis is

drastically diminished home values. 4.4 Million Americans have

lost their homes, but even more have held on hoping that a

solution could materialize. AHP is that solution for these

families. Providing innovative strategies and consensual

solutions, affords the opportunity for homeowners to keep

their homes. Without the efforts of our in house teams,

homeowners and families would lose, and neighborhoods and

communities would deteriorate. AHP utilizes resources to

preserve neighborhoods and communities and provides help to

those who have been hardest hit by the economic crisis.

SECURE YOUR FUTURE

At AHP we say you can secure your future by securing

someone elses. This is one of things that makes our solution

so powerful. We strive to achieve win- win- win solutions where

Investors win Homeowners win Lenders win. We know that

profitability and doing right can go hand in hand. The

ramifications and benefits of managing our organization in this

manner have allowed us to provide lenders and investors with

a viable alternative in a market where the social impact and

purpose of any organizations actions can often be overlooked.

SOLUTIONS


THE AHP DIFFERENCE

STREAMLINED BUSINESS MODEL

AHP keeps all operations under

one roof. Acquisition, Servicing,

Legal Counsel, Portfolio

Management, and work together

as a cohesive team in our

Chicago office.

LEADERSHIP

AHPs leadership team and

the vision they bring to the

company, we feel is an

underlying competitive

advantage. With decades of

experience in the real estate

industry, leadership has a keen

understanding of trends, risk,

and opportunity.

PASSION

AHP endeavors to excel at our

dual mission of achieving

extraordinary social impact for

struggling families and

generating financial gains for

our investors.

ADAPTABILITY

With resources in one location,

AHP is able to easily redirect

human capital to specific

projects as necessary.

Opportunities can move quickly,

and our organization is

structured to act appropriately.

RESPONSIBILITY

At AHP, responsibility is at the

heart of our business. While

providing our Investor clients

with optimal returns and

security, we are preserving

neighborhoods and communities

and improving the lives of the

people who live there.

STRATEGIC ALL IANCES

BROKER-DEALER

TRUSTEE & DOCUMENT CUSTODIAN

SERVICER

LEGAL COUNSEL

FUND ADMINISTRATOR

TAX ADVISOR

PAST PERFORMANCE

American Homeowner Preservation Fund

Predecessor entity/ same management

Investor Returns

14.6%*- 2012 14.5%*- 2013 *Past performance is not indicative of future performance.


OUR TEAM

Jorge Newbery

Founder & CEO

Verria Kelly

Chief Operations

Officer

Gregory E.B. Smith

Investor

Representative

Jhoel Deguzman

Investor

Representative

A win-win for all concerned. The owner gets to stay in

their house, the bank gets to avoid the expense of

foreclosure proceedings, and the property buyer gets

decent returns. Clever!

- Felix Salmon, Reuters

American Homeowner Preservation

is hoping to demonstrate that they

have better ideas to ameliorating the

foreclosure disaster."

- Joel Sucher,

American Banker

AS FEATURED IN:

I N V E S T O R R E L A T I O N S

E X E C U T I V E S

3 Reserve Account set aside to meet unexpected costs or costs of upkeep that may arise in the future

4 Due Diligence is an investigation of potential acquisitions

TOTAL INVESTMENT $30,000,000 Value of Real Estate Collateral $60,000,000

Class A $7,500,000 Investment as % of Value 50%

Class B $7,500,000 Total Debt $90,000,000 Class C $15,000,000 Investment as % of Total Debt 33%

Acquisition Price of Assets $28,830,000 Reserve Account3 $960,000 Forecast Annual Payments $2,160,000 Due Diligence4 $180,000 Forecast Gains on Liquidations $15,000,000

Legal, Trust Setup, Registrations $30,000 Total Number of Assets 2,000

GROSS REVENUE $33,110,700 $6,914,363

Property Sale Capital Return $5,000,250 $2,499,750

Property Sale Capital Gains $2,500,125 $624,938

Modified Loan Sale Capital Gain Modified Loan Sale Capital Return Paying Loan Sale Capital Return Paying Loan Sale Capital Gain Non-Performing Loan Sale Capital Return Non-Performing Loan Sale Capital Gains Payment Income

$5,000,250 $1,500,075 $4,500,000 $900,000

$10, 500,000 $1,050,000 $2,160,000

$2,499,750 $749,925

$540,000

TOTAL EXPENSES $2,678,000 $6,914,363

Fund Administration $18,000 $18,000 Accounting $9,000 $9,000 Fund Legal $9,000 $6,750 Document Custody $12,000 $9,000 Trustee $30,000 $30,000 Servicing, File Legal, Borrower Incentives Management Fee (AHP)

$2,000,000 $600,000

$500,000 $602,012

NET REVENUE $30,432,700 $6,312,350

FUNDS TO INVESTORS

Class A Preferred Return $675,000

Class B Preferred Return $765,000

Class C Preferred Return $1,800,000 $1,463,124

EXCESS REVENUE $27,192,700 $4,849,226

Reserve Release Class A Return Capital

$7,500,000

$ 9 6 0 , 0 0 0

Class B Return Capital $7,500,000

Class C Return Capital $12,192,700 $2,807,300

Class M (AHP) Income $3,001,926

PROJECTED SUMMARY SERIES 2014B

A N N U A L P R O J E C T I O N S

GROSS REVENUE $33,110,700 $6,914,363

Property Sale Capital Return $5,000,250 $2,499,750

Property Sale Capital Gains $2,500,125 $624,938

Modified Loan Sale Capital Gain Modified Loan Sale Capital Return Paying Loan Sale Capital Return Paying Loan Sale Capital Gain Non-Performing Loan Sale Capital Return Non-Performing Loan Sale Capital Gains Payment Income

$5,000,250 $1,500,075 $4,500,000 $900,000

$10, 500,000 $1,050,000 $2,160,000

$2,499,750 $749,925

$540,000

TOTAL EXPENSES $2,678,000 $6,914,363

Fund Administration $18,000 $18,000 Accounting $9,000 $9,000 Fund Legal $9,000 $6,750 Document Custody $12,000 $9,000 Trustee $30,000 $30,000 Servicing, File Legal, Borrower Incentives Management Fee (AHP)

$2,000,000 $600,000

$500,000 $602,012

NET REVENUE $30,432,700 $6,312,350

FUNDS TO INVESTORS

Class A Preferred Return $675,000

Class B Preferred Return $765,000

Class C Preferred Return $1,800,000 $1,463,124

EXCESS REVENUE $27,192,700 $4,849,226

Reserve Release Class A Return Capital

$7,500,000

$ 9 6 0 , 0 0 0

Class B Return Capital $7,500,000

Class C Return Capital $12,192,700 $2,807,300

Class M (AHP) Income $3,001,926

A N N U A L P R O J E C T I O N S


FAQ

Q When I Invest In AHP, What Do I Own?

A When you invest in an opportunity with American Homeowner

Preservation you are purchasing a membership interest in one of

AHPs series LLCs. The series is the beneficial owner of mortgages

and real estate managed by American Homeowner Preservation

Trust.

Q How Long Are the Investments For?

A Within each series there are 3 classes from which investors may

choose. These classes are defined by the projected terms of one,

two and five years. One year is designated by Class A, Two years by

Class B, & Five years by Class C.

Q Where Does AHP Fit Into An Investment Portfolio?

A AHP is an alternative investment that integrates well with fixed

income allocations. The characteristics of AHPs offerings include

predictable steams of income with the benefits of above market

returns. Given the volatility of the bond market and the overall

downward trend of conventional fixed income vehicles AHP offers a

compelling fusion of returns and stability to any investment

portfolio.


Q How Is Revenue Distributed?

A Revenue is distributed on the 10th of each month. After

payment of expenses and subject to any reserves, revenue is

distributed as follows:

1. Interest to each Class, based on investment balance for

each investor on the final day of the prior month.

2. After Interest are paid to each Class, any Excess

Revenue is distributed as return of Principal. Class A

Principal is returned first and, once fully retired, Class B

Principal is returned and, once fully retired, Class C Principal

is returned. Thus, prepayment of some or all Principal prior

to the end of expected term is possible for all Classes.

3. Once all investors have received payment of Interest and

return of their principal, AHP is entitled to any residual value

in the assets held by each Series. Thus, AHP's incentive is

back-loaded and maximized by distributing Interest and

returning Principal to investors as promptly and efficiently

as possible.

Q What Are The Risks?

A Mitigating risk for investors is a top priority at AHP. The series

is non-levered, backing investor principal with real assets under

management. Further, the portfolio is absent of securities subject to

market volatility and systemic risk. AHP is structured to hold all

assets in American Homeowner Preservation Trust, of which U.S.

Bank is trustee. If necessary, U.S. Bank could appoint a replacement

manager in the event AHP is unable to continue management.


Prior Servicer

AHP SOLUTION

Extinguished

Principal $195,418 $29,600 $165,818

Monthly Payment $1,449 $320 $13,548 yearly Delinquency $43,471 $2,000 $41,471

Up-Front 1-Year 20+ Years

IRR% 61% 40% 30%

HOMEOWNER CASE STUDY

CHALLENGES

CHALLENGES

OUR SOLUTION

OUR SOLUTION

Watching your property value plummet 85% and at the same time learning

you are being laid-off from your job of nearly 20yrs would be hard for many

of us to imagine. In 2002 this exact scenario played-out for Steven Gilbert, a

hard working delivery driver attempting to secure his future by investing a

rental property. At the time, the $200,000 price tag seemed to be a bargain

in what was a heady real estate market, and in what seemed like a great

investment.

Values had plummeted in this neighborhood and, by early 2014, the home

was only worth $32,000. This sounds extreme, but this collapse is common

in low to moderate income neighborhoods throughout the U.S. Left with few

options Steven began seeking bankruptcy protection in an effort to hold on

to the property he had worked so hard to buy.

Steven fell behind on the mortgage payments as he could not find a new job.

However, in 2013, he had obtained an insurance license and was again

employed. He applied for a modification through Ocwen, his servicer,

but was denied.

Watching your property value plummet 85% and at the same time learning

you are being laid-off from your job of nearly 20yrs would be hard for many

of us to imagine. In 2002 this exact scenario played-out for Steven Gilbert, a

hard working delivery driver attempting to secure his future by investing a

rental property. At the time, the $200,000 price tag seemed to be a bargain

in what was a heady real estate market, and in what seemed like a great

investment.

Values had plummeted in this neighborhood and, by early 2014, the home

was only worth $32,000. This sounds extreme, but this collapse is common

in low to moderate income neighborhoods throughout the U.S. Left with few

options Steven began seeking bankruptcy protection in an effort to hold on

to the property he had worked so hard to buy.

Steven fell behind on the mortgage payments as he could not find a new job.

However, in 2013, he had obtained an insurance license and was again

employed. He applied for a modification through Ocwen, his servicer,

but was denied.

AHP Purchase Price: $9,600

Prior Servicer

AHP SOLUTION

Extinguished

Principal $195,418 $28,800 $166,617

Monthly Payment $1,700 $320 $1,380 Delinquency $43,471 $2,000 $41,471

Up-Front 1-Year 20+ Years

IRR% 61% 40% 30%

AHP Purchase Price: $9,000

Steven was initially skeptical, as he thought our offer sounded "too good to

be true." However, he was able to verify with Ocwen that we now owned his

mortgage, so he took the deal. The deal we made here seems charitable, but

if you look at the numbers, our first year return was greater than 50% and

the next 20+ years are forecast at over 30%. Fantastically, our returns are

often best with a consensual modification such as this, as we save the time

and costs of foreclosing.



AMERICAN HOMEOWNER PRESERVATION

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