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Investor Spotlight: Why Lauren Pelsnik Chooses 890 Capital for Steady, Reliable Returns in Real Estate

Investing can be a complex journey, especially when the markets seem increasingly volatile and unpredictable. At 890 Capital, we strive to offer our investors something different—an investment strategy grounded in real assets, specifically through hard money lending in the Southeast real estate market (currently focussed in the tri-county area of Charleston). This approach ensures stability, security, and consistent returns, which is why we’re so excited to share insights from one of our valued investors, Lauren Pelsnik.

Recently, I had the pleasure of sitting down with Lauren to discuss her experience investing with 890 Capital and what drew her to our asset-backed investment fund. Lauren brings a unique perspective as an investor looking to grow her wealth in a way that aligns with her values: security, transparency, and steady returns. In our conversation, she opens up about why she chose real estate over traditional investments and shares her thoughts on what makes 890 Capital stand out as a hard money lending fund.

Lauren highlights the importance of knowing her investment is backed by real, tangible assets. She loves that 890 Capital’s portfolio doesn’t rely on a single property or borrower but instead is spread across multiple projects, each carefully vetted and underwritten to ensure a stable foundation for our investors. Lauren also appreciates our commitment to transparency and our focus on partnering with experienced, trustworthy borrowers—qualities she values in building long-term wealth.

You can watch our full interview here to learn more about why investors like Lauren are choosing 890 Capital. She shares insights on navigating today’s financial landscape and why she believes real estate-backed lending is a powerful strategy for anyone seeking passive income without the unpredictability of the stock market.

👉 Watch the Interview with Lauren Pelsnik

Whether you’re new to real estate investing or looking for an experienced team to help grow your wealth, Lauren’s experience sheds light on the benefits of partnering with 890 Capital. We’re proud to support investors like her in achieving their financial goals through smart, stable real estate investments.

Stay tuned for more investor spotlights and insights into the world of hard money lending and asset-backed investing!

See you at the top!

October 2024 – Mailbox Money

Happy Halloween 890 Capital Investors and Friends!

Frank Conway updates investors on the progress of 890 Capital through October 2024.

Transcript below:
October Update

Hey everyone! I hope you’re doing well. It’s been a fantastic month here at 890 Capital since our last update, and I’m excited to share everything with you.

Recap of Loan Activity & Pipeline
We’ve had multiple loans pay off over the past month, which is always great news. As soon as those funds came back, they went right back out to work with new loans already in our pipeline. It’s a constant cycle of opportunity, and I can’t stress this enough – we have a huge pipeline of deals we could be doing right now. The only thing holding us back is raising more capital to fully fund them. In the meantime, we are still underwriting these deals and sharing them with partners who might be interested in servicing them.

Let me give you two recent examples of properties we’ve funded:
• The first deal was a single-family home in Lincolnville, SC. It was purchased for $250,000, rehabbed with $25,000, and sold for $385,000.
• The second deal was another single-family home in Summerville, SC. This one was purchased for $178,500, rehabbed with $35,000, and sold for $288,000.

These kinds of projects show the power of quick, efficient lending – giving our borrowers what they need to seize opportunities and flip properties successfully.

We’ve also had the pleasure of welcoming new investors over the past 30 days! They’re already earning 10% annualized interest on their money, which we’re thrilled to be able to offer.

Right now, we’re continuing to offer 10% interest on 1-year terms to our investors. And honestly, if you compare that to what High Yield Savings Accounts are offering, it’s a no-brainer. I feel like I am getting a new email from Apple and Goldman Sachs every week telling me that my savings account APY is decreasing again… Food for thought.

The Fed still has two more meetings before the end of the year – on November 6-7th and December 17-18th – with expectations of additional rate cuts. If those cuts happen, HYSA rates will likely continue to drop even further.

But here’s the best part: We’re guaranteeing our 10% annualized return for new investors through the end of 2024 or until we hit $10 million to close out Fund I – whichever comes first. For all our existing investors, you’re locked in and will continue to renew at your current rates.

As 2025 approaches, we’ll take a closer look at market conditions and decide what rates we should competitively offer going forward. We always strive to provide the highest returns possible for our investors. However, it’s worth noting that new investors in 2025 may be looking at rates closer to 8-9%.

Investor Corner
Investor Question: Why Do Borrowers Take Loans at 12%?
I’ve heard this question from a few of you: ‘Why would borrowers take money at 12%? Are you guys loan sharks?’

The truth is, borrowers are okay with paying these rates because the alternative – going through a bank – is just too slow. Banks take 30+ days to close on a loan, and the paperwork is overwhelming. Our borrowers are typically real estate investors focused on fix-and-flip projects, so they need quick, reliable access to cash to keep their projects on schedule.

Since our loans are short-term, typically only 6 months, the interest rate isn’t as big of a factor.

These borrowers build the loan costs – including points and interest – directly into their proformas.

They know they can get in and out of deals quickly, and they prioritize speed and flexibility over a slightly lower interest rate.

Plus, many banks have slow draw processes, which can delay payments to contractors. That’s another reason borrowers love working with us – we move quickly so they can keep their projects on track and pay their teams promptly.

Our model is to lend to experienced operators with solid track records. Instead of charging the highest rates in the market, we aim to offer fair pricing in exchange for working with dependable borrowers who also sign personal guarantees. That’s a win-win for everyone involved.

Thanks so much for tuning in to this month’s update! As always, we’re grateful to have you on this journey with us. Reach out at any time if you want to chat about what we’re offering or have any questions. See you at the top!

Managing Volatility and Looking Ahead

Tired of the ups and downs of the stock market or concerned about what is going to happen to your portfolio?

This is what we are hearing from almost ALL of our investors!
As the holiday season approaches, we’re reflecting on the consistent performance of 890 Capital’s portfolio and sharing some exciting updates from our investment community. Here’s what’s new and what to expect as we close out the year:

Portfolio Update
Our portfolio continues to thrive, with all loans performing on time and no defaults—a testament to our rigorous underwriting and asset-backed investment approach. We’ve now surpassed $50,000 in monthly interest payments to our investors, with sights set on hitting the $100,000 mark soon! This steady performance reinforces our commitment to generating passive, reliable cash flow for all investors.

Market Trends & Insights
While market volatility has challenged many sectors, 890 Capital’s focus on the Southeast U.S. real estate market has provided stability. The region remains one of the fastest-growing areas in the country, and we’ve strategically positioned our lending services to meet the demand for fast funding.

Looking ahead, we’re closely monitoring the Federal Reserve’s rate policy decisions. Regardless of rate fluctuations, our investors continue to earn annualized returns of 10% or more—paid monthly.

Opportunities for New Investors
Our fund remains open to accredited investors looking for secure, high-growth opportunities. Please reply to investors@890capital.com if you want to know more about how the fund works!

Why Refer a Friend?
Know someone who might benefit from investing with 890 Capital? Referrals are a great way to build our community, and to make it easy, we’ve created a short YouTube video about our platform.

Share it with your network and help others access the advantages of passive income through real estate investing.

Risk Management You Can Count On
In uncertain times, investor protection is more critical than ever. That’s why every loan we make is backed by first-position mortgages and conservative loan-to-value ratios. Additionally, our relationship with The Caleb Pearson Real Estate Team at REMAX ensures that underperforming assets can be quickly managed and sold if needed.

Thank you for your continued support and trust in 890 Capital. We look forward to a prosperous close to 2024 and an exciting year ahead! If you have any questions or wish to discuss your investment, please don’t hesitate to reach out.

See You At The Top!

Caleb Pearson & Frank Conway
890 Capital

Meet Frank Conway, 890 Capital Partner

Wanted to take a moment to introduce one of our partners and co-founders, Frank Conway.

Frank Conway is a real estate and technology operator and investor who brings operational rigor to 890 Capital. Frank has spent 10+ years working in sales, strategy and operations roles within companies ranging from early-stage startups to Fortune-500s.

Frank approaches each interaction with a focus on mutually beneficial partnerships that result in win-win-win scenarios for investors, borrowers and 890. He is dedicated to long-term wealth-building for his clients, combining integrity and diligence to ensure their capital remains secure while growing steadily.

Invest in 890 Capital Through Your IRA – TAX FREE!

We understand the importance of maximizing our investors returns, not just through strong fund performance but also through tax-efficient strategies. As ordinary income may impact investors’ net returns, we have been exploring alternative options. Over the past few months, we have been piloting a relationship with NuView Trust and are excited to share that we now offer the option to invest through retirement accounts / IRAs. By leveraging this industry leading low-cost custodian, wwe can provide our investors with steady, passive growth using retirement funds. 

By investing through a self-directed IRA, you can benefit from tax-deferred or tax-free growth on your returns, allowing you to realize the full benefit of the 10%+ returns that our fund provides. 

Is any portion of your retirement account earning a steady, consistent return? If this is of interest to you, please let us know, and we can assist you with setting up your account. The process is a white-glove experience that takes just a few days. We are committed to exploring additional tax-efficient vehicles for our investors and will keep you informed of new opportunities as they arise.

Why Invest Through an IRA?

An IRA provides a unique opportunity to build and preserve your wealth in a tax-advantaged account. By investing in 890 Capital through a self-directed IRA, your earnings can grow tax-free (Roth IRA) or tax-deferred (Traditional IRA), allowing your returns to compound more effectively over time.

Here’s why this option is ideal for both new and existing investors:

  1. Tax-Advantaged Growth: Maximize the potential of your returns without immediate tax liabilities.
  2. Diversified Retirement Portfolio: Real estate-backed investments through hard money lending can add stability to your retirement portfolio, reducing reliance on traditional stocks and bonds.
  3. Control Over Your Investments: With a self-directed IRA, you maintain control over your investment strategy, giving you more freedom to diversify.

About NuView Trust Company

NuView Trust Company is a leading provider of self-directed IRAs, enabling investors to take control of their retirement funds by expanding the range of investments beyond conventional assets. Their platform makes it simple to invest in alternative assets like real estate, offering flexibility and transparency every step of the way.

How to Get Started

If you’re interested in exploring how investing in 890 Capital through a self-directed IRA can enhance your financial strategy, we encourage you to reach out to our team. We’ll guide you through the process and provide all the necessary details to ensure a seamless transition.

Our relationship with NuView Trust Company brings another layer of flexibility and advantage to our investors, partners, and potential investors. We look forward to helping you grow your wealth in a tax-advantaged manner.

Contact Us Today!

For more information about this exciting opportunity, please don’t hesitate to contact us. Our team is ready to answer any questions you have and assist you in taking the next steps toward growing your retirement portfolio with 890 Capital.

Learn more about NuView at www.nuviewtrust.com or reach out to us directly and we would be happy to connect you.

 

August 2024 – Mailbox Money

As we move towards the end of summer (that was fast!) I wanted to take a moment to update you on the progress and performance of 890 Capital. The fund continues to deliver strong results, providing our investors with returns of 10%+. 

Fund Performance and Updates

The average LTV of the Fund’s outstanding loans is 69.02% across all loans with an average loan size of $206,100. All borrowers are paying on time and we have had no defaults in the portfolio. 

One important update for existing investors and anyone who has read our fund docs relates to the collateralization of investor notes. We have received feedback from some of our investors regarding the clarity of this aspect in our documentation. To address this, we have made a change to our documents to ensure that it is explicitly stated that the notes are collateralized by the fund’s portfolio of real estate assets, as was always intended. This change has been formalized in the latest versions of our PPM and Investor Booklets. We appreciate your patience as we ensure all documentation accurately reflects our commitments.

Market Insights and Loan Forecasts

According to Bankrate, the current national average interest rate for the benchmark 30-year fixed mortgage has dropped to ~6.51%, down from 7.5%. For every 1% drop in rates, you can expect to see 5M borrowers entering the market nationally. 

Wars in Europe and the Middle East, a tense presidential election, recent market turbulence and Federal Reserve Chair Jerome Powell commenting “a reduction in the policy rate could be on the table as soon as the next meeting in September,” all that seems certain is continued uncertainty in the near-term. 

Meanwhile, our pipeline of loan opportunities remains robust, with more requests for loans than we currently have capital available. This “good problem” underscores the demand for the flexible, fast financing solutions while allowing us to be selective to ensure deals are properly underwritten. 

Tax-Advantaged Investing

We understand the importance of maximizing your returns, not just through strong fund performance but also through tax-efficient strategies. As ordinary income may impact your net returns, we have been exploring opportunities to mitigate this impact. We now offer the option to invest through retirement accounts / IRAs, leveraging an industry leading low-cost custodian. This provides steady, passive growth using retirement funds. 

By investing through a self-directed IRA, you can benefit from tax-deferred or tax-free growth defer taxes on your returns, allowing you to realize the full benefit of the 10%+ returns that our fund provides. 

Is any portion of your retirement account earning a steady, consistent return? If this is of interest to you, please let us know, and we can assist you with setting up your account. The process is quick and a white-glove approach. We are committed to exploring additional tax-efficient vehicles for our investors and will keep you informed of new opportunities as they arise.

Looking Ahead

As we look forward to the coming months, our focus remains on raising capital and delivering consistent returns while maintaining transparent communication with you. We continue to seek out high-quality opportunities that align with our investment strategy and are dedicated to ensuring the long-term success of the fund.

Thank you for your continued trust in and support of 890 Capital. If you have any questions or would like to discuss any aspect of an investment, please do not hesitate to reach out. We are here to support a profitable and secure journey with all investors.

 

We appreciate you!

Frank & Caleb

890 Capital LLC

 

Find more details about NuView here and in the video below.