Jorge Newbery, Founder & CEO of American Homeowner Preservation, shares a primer on How To Invest in Nonperforming Mortgages for Financial & Social Gain

1. American Homeowner Preservation, LLC
American Homeowner Preservation, LLC
819 SOUTH WABASH AVENUE ∙ SUITE 606 CHICAGO, ILLINOIS 60605
AHPINVEST.COM ∙ (800) 555 - 1055
How To Invest In Nonperforming Mortgages for
Financial & Social Gain
May 12, 2015

2. American Homeowner Preservation, LLC
The Opportunity
2
Foreclosure crisis now concentrated in low- and
moderate income-neighborhoods
U.S. market of over $300B in underwater mortgages, close
to 20% of mortgages; in Ferguson, MO: 51%
First Mortgages sold at a percentage of home value, often
30 – 80% (sub-75K value homes often at sub-50%
Social Impact
538 468 $57M $2.8M
Homeowners
Retained
Vacant Homes
Back In Service
Negative Equity
Extinguished
Annual Payment
Savings

3. American Homeowner Preservation, LLC
Delinquent Taxes
What to Look For
3
Social Impact
538 468 $57M $2.8M
Homeowners
Retained
Vacant Homes
Back In Service
Negative Equity
Extinguished
Annual Payment
Savings
Value of the Property
Title Report
File Review

4. American Homeowner Preservation, LLC
Sources
4
Social Impact
538 468 $57M $2.8M
Homeowners
Retained
Vacant Homes
Back In Service
Negative Equity
Extinguished
Annual Payment
Savings
Kondaur Capital
Security National
Gemini

5. American Homeowner Preservation, LLC
AHP Bidding Formula
5
Social Impact
538 468 $57M $2.8M
Homeowners
Retained
Vacant Homes
Back In Service
Negative Equity
Extinguished
Annual Payment
Savings
Value = The lower
of the BPO or UPB
Value Bid
< 15k 20% of Value
15k - 25k 25% of Value
25k - 35k 30% of Value
35k - 45k 35% of Value
45k - 55k 41% of Value
55k - 65k 46% of Value
> 65k 50% of Value

6. American Homeowner Preservation, LLC
Learn the Terms
6
Social Impact
538 468 $57M $2.8M
Homeowners
Retained
Vacant Homes
Back In Service
Negative Equity
Extinguished
Annual Payment
Savings
Unpaid Principle Balance
Broker Price Opinion
Tax Sales
Next Payment Due Date
Delinquent Taxes
Allonge
Assignment
NPL
Mortgage
Note

7. American Homeowner Preservation, LLC
Team of Experts
77
Jeff Blumberg
Partner, Ulmer Bern
Joseph
McKoski
SS&G
Jeff concentrates his practice on investment management law and counsels clients on
regulatory, organizational, structural and business matters for a variety of registered and
unregistered money managers, including hedgefund managers, investment advisers,
broker-dealers, commodity trading advisors, and commodity pool operators. Jeff is a guest
lecturer at the Northwestern University School of Law and is a frequent speaker at industry
conferences on topics relating to hedge funds and registered investment advisers.
Joseph is a senior associate in the tax department at SS&G. Prior to joining SS&G, Joseph
was at Hobe & Lucas, CPAs where he was a staff accountant responsible for various types of
tax returns and leading audits. Joseph earned his bachelor's degree in accounting from The
University of Akron. SS&G is one of the nation's largest independent accounting and
business consulting firms with offices in Ohio, Illinois, Kentucky, and New York.
Brian serves as Senior Portfolio Manager, and is the architect behind AmericaVest Capital
Management’s core investment strategy. For the past 10 years, Mr. Plunkett has been the
Fund Manager of more than 50 individual real estate backed investment funds.
AmericaVest Capital Management is a full-service, on and off balance sheet lender with a
real estate investment trust (REIT) mortgage structure in place and specializes in small- to
middle-market commercial loans nationwide.
Brian Plunkett
Senior Portfolio Manager,
AmericaVest Capital
Management, LLC

8. American Homeowner Preservation, LLC
Team of Experts
88
Author
Weissman
WealthForge
David joined SN Servicing Corporation in February 1997, as the Senior Vice
President/Managing Director of Acquisitions. David managers and operates the SN
Servicing Trading Desk. He has more than 22 years of experience in the Analyzing,
Negotiating and Acquiring of Performing, Sub-performing, and Non-Performing residential
and Commercial assets. He hold a Master of Business Management and a Bachelor of Arts
Degree in Business Management.
Arthur is an industry expert leading the transformation of private investing from “offline”
to “online”. At WealthForge, Arthur heads sales and marketing helping to make raising
private capital cheaper, faster and easier than ever before. Today, WealthForge is the only
licensed broker-dealer offering a full suite of online investment products that touch on
every aspect of the new, online private equity marketplace and more than $50 million
dollars has been invested using WealthForge’s platform.
David Pollio
Managing Director,
Security National Master
Holding Company
BROKER-DEALERTRUSTEE &
DOCUMENT CUSTODIAN
SERVICER

9. American Homeowner Preservation, LLC
AHP Evolution
9
2008 2009 2011 2013 2014
AHP opens office in
Cincinnati, OH and is
awarded 501(c)3
non- profit designation
by IRS
AHP transitions to
for- profit, pioneers
short sale lease- back
as foreclosure remedy
AHP moves to Chicago, IL
and transitions to socially
responsible hedge fund
AHP buys first
pool of non-
performing
mortgages
AHP evolves into online
investment community
to do well by doing good
Establishes in- office branch
of Security National Servicing,
licensed nationwide
Affiliates with WealthForge,
a licensed broker-dealer

10. American Homeowner Preservation, LLC
Underwriting
10
Risks
Valuations
Local
Agents
Title Abstrax
Property
Taxes
Black
Knight
Collateral
File Reviews
AHP
Analysis Operative
AHP buys mortgages at an average of less than 50% of current property values
• Inaccurate Valuations
• Undetected Property Damage/Vandalism
• Unsecured Mortgages
• Unexpected Liens/Title Issues
• Delinquent Property Taxes
• Tax Sales
• Missing & Deficient Notes,
Security Instruments, Title Polices,
Assignments , Allonges
This Is a Business of Solving Problems
To Generate Solid Returns, We Must Uncover The Problems Before We Buy

11. American Homeowner Preservation, LLC
A Simple Solution
11
Borrower Laid Off
From 17- Year Job
$164,000 Mortgage
Originated
2003 2012 2013 2014
Dec: Modification
Denied; FC Sale Set
Maywood, IL
2007
$32,000
Property
Value
$200,000
2010
Foreclosure
Started
July: Applied
To Servicer
For Modification
Jan: AHP
Purchased
For $9,600
Feb: AHP Modified =
$9,600 Loan Acquisition Price
2014 : 54% first-year return
$2,000 to cure delinquency
$3,200 10 x $320 payments
$5,200
Next 18 years: 40% annual return
$3,840 12 x $320 payments

12. American Homeowner Preservation, LLC
High Performance Strategy
12
American Homeowner Preservation Fund
November 2011 – November 2013
Predecessor Entity / Same Management
How To Make Money How To Lose Money
• Expeditious, Respectful Borrower Outreach
• Simple, Formulaic Solutions
• Minimal Documents for any Solution
• Consensual Solutions Minimize Legal Costs
• Use Foreclosure as a Tool to Provoke Response
• In- House Servicer Branch
• Customer Service in Chicago
• Loans Held in Trust with U.S. Bank as Trustee
“You Don’t Have To Litigate With Us To Get A Good
Deal. We’ll Give You The Good Deal Upfront”
– CEO Jorge Newbery
Bloomberg Business, March 2014
• Abrasive Collection Efforts
• Complicated, Customized Solutions
• Paper Circus Required for any Solution
• Protracted Borrower-Lender Wars Amplify Legal Costs
• Foreclosure as a Tool to Acquire Real Estate
• Outsource Servicing
• Customer Service Overseas
• Loans Held in Unlicensed Entity
2012 14.6%* $6,125,998
2013 14.5%* $6,295,881
2014 9%*, 10.2%*, 12%* $8,177,367
Non- Performing Mortgages Lose Value Daily
Due to Collateral Deterioration & Tax Accruals;
Rapid Resolutions Are Critical
Investor Return Capital
Transitioned to closed-end fund structure
in late 2013
*Past performance is not indicative of future performance.

13. American Homeowner Preservation, LLC
Series 2014B Loans to be Acquired
13
Seller: Big Bank
Total Debt: $12,739,319
Total Property Value: $8,483,443
Acquisition Cost: $3,839,122
Cash Flow Last 12 Months: $799,883
$55,812 average property value
45% acquisition to value
20% + annual return on last
12- months of existing cash flow
Seller: Major Subprime Issuer
Total Debt: $27,809,986
Total Property Value: $6,276,550
Acquisition Cost: $1,000,000
$26,882 average property value
16% acquisition to value
54% of files have extreme issues: HOA Foreclosures, Tax Problems, Title Issues

14. American Homeowner Preservation, LLC
Transaction Flow
14
Investors $
Homeowner $
Approve All $$$
Distributions
Expenses,
Management
Pool Sellers
NDH Group, Ltd.
Review All
Investors
Approve All $$$
Distributions
NDH Group, Ltd.
Fund AdministratorBroker- Dealer
Servicer
Assets & Documents
Payments & SalesDistribution Bank Account
Trustee &
Custodian

15. American Homeowner Preservation, LLC
AHP in the Media
1515
"Profit + Purpose: American Homeowner Preservation Proves That Socially Responsible
Investing Can Yield a Healthy Return"
“They’re a lot more flexible than a bank,” said Ragusa, 48, who ran into financial trouble
after losing his job in collections for a cable company in 2007. “They can work with you
because they’re a private company and they can basically set their own rules.”
"...you have American Homeowner Preservation using private investor money to buy up
mortgage pools and give the borrowers the solutions they need, not the ones that
maximize profits for the company...it's an exciting development, and it shows you can do
well and do good at the same time. Frankly, it's what the government did with the Home
Owners Loan Corporation in the 1930s, and what they should be doing today."
"AHP over the years had evolved into a sort of socially conscious hedge fund. Jorge is
relentless, probably steeled in part by his athletic competitiveness, and has continued to
press the case for AHP's vision, and, along the way his work has caught the attention of
major bloggers like Arianna Huffington, Felix Salmon and Martin Andelman. AHP is hoping
to demonstrate that they have better ideas to ameliorating the foreclosure disaster"
FEATURED IN

16. American Homeowner Preservation, LLCAmerican Homeowner Preservation, LLC
16
DISCLAIMER
*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.