American Housing Investments, LLC (“AHI”) believes that current conditions are creating unprecedented opportunity, given the magnitude of the collapse of the real estate and capital markets. For example, the S&L crisis of the early 1990’s cost the Federal Government $125 billion. Before this current crisis ends, AHI estimates that the cost to the U.S. government could exceed $5 trillion. The opportunities for AHI are a direct result of the magnitude of these potential losses because owners, lenders and, ultimately, the federal government, will seek to minimize these losses. One of the mechanisms for reducing these losses will be the sale of troubled real estate at prices that are a fraction of construction costs. Consequently, AHI has created a targeted investment fund to capitalize on these extraordinary opportunities.
AHI seeks to acquire condominium or other multifamily housing inventory as well as unfinished single-family subdivisions and undeveloped raw land. AHI’s investment parameters dictate that (a) such inventory be institutional-quality and located in prime-market areas that have been overbuilt or are tainted with foreclosures; (b) the price paid be in the range of 20-50% of mortgage amount; and (c) 5-8 times the invested capital be returned over a 5-7 year period. Investment returns will be a function of property income, acquisition fees and capital appreciation.