Category: Monthly Update

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Hi everyone,

Frank here with your latest 890 Capital update — thanks, as always, for tuning in. Below, I’ll walk you through how the fund is performing, what we’re seeing in the real estate market (both locally and nationally), and what’s new behind the scenes at 890.

Happy Easter to all who celebrate 🐣

Steady Performance in a Shaky Economy
It’s been a wild few weeks economically, with market volatility and new tariff headlines making waves. These moments are exactly why we created 890 Capital — to offer a reliable path to steady, above-market returns backed by real estate.

If you’re looking for a way to grow your portfolio with consistent income and less volatility than stocks and more upside than CDs, let’s talk.

Fund Snapshot (as of early April 2025):
Capital Raised: $7M+
Loans Funded to Date: 41
Loans Paid Off: 15
% of Capital Currently Deployed or Earmarked: 100%
All borrowers are current on payments

Investors are earning 10%+ APY, paid monthly by the 5th

How We Lend: Disciplined, Local, First-Position

We continue to lend primarily across Charleston, Berkeley, and Dorchester counties—in towns like Summerville, North Charleston, Moncks Corner, Johns Island, Goose Creek, and others.

Our edge? We know this market inside and out, and we underwrite every deal with precision.

Average Loan Size: $269,000
Average Loan-to-Value (LTV): 68%
Loan Security: 100% First-Position Mortgages

We’ve also partnered with new capital providers to ensure we can keep meeting borrower demand without compromising our standards.

Recent Activity
We’ve been busy locally—meeting with both investors and borrowers—and will be launching a small roadshow later this year to connect with investors around the country.

We’re also proud to be attending the South Carolina Medical Association Annual Meeting later this month. Our goal is to provide physicians across the state with a hands-off, high-performing investment option backed by real estate.

Charleston Market Overview
*YoY Numbers

Charleston County:
Median price up 13.6% YoY to $727,500
Inventory up 41.8%
Days on Market: 48

Berkeley County:
Median price up 5.9% to $413,400
Inventory up 12.5%, DOM: 48

Dorchester County:
Median price flat (+0.3%) at $387,755
Sales volume down, but pricing power remains
Inventory up 23.9%, DOM: 46

We’re often asked: “Is there still a market for fix-and-flips in Charleston?”

The answer: Absolutely. Our network of experienced borrowers continues to find value in overlooked properties, even as the broader market shifts. Demand for renovated homes is still strong.

National Fix-and-Flip Update – Q1 2025
8.7% of U.S. home sales were flips in Q1 (up from 7.7% last quarter)
Avg Gross Profit: $72,375
Avg ROI: 30.2%

Investors nationwide are adjusting by focusing on cosmetic rehabs and targeting homes in low-inventory markets with buyer demand. The Southeast is leading the charge, with cities like Warner Robins, Macon, Fayetteville, and Atlanta seeing the highest flip activity.

While some Western markets (e.g., Austin, San Antonio) face tighter margins, the Southeast continues to be the most reliable region for fix-and-flip investing.

Looking Ahead
We’re excited to keep growing—welcoming new investors, deploying capital into great deals, and exploring partnerships with institutional funders.

Want to Help Us Grow?
If you know someone who should be earning passive income through 890 Capital — a doctor, business owner, or friend in another profession looking for real returns — we’d love an intro. Just forward this email or have them contact us at hello@890capital.com.

Thank you, as always, for your trust and support. We’re grateful to have you as part of the 890 Capital community. If you ever want to connect 1-on-1, I’m just a reply away.

See you at the top,

Frank Conway
CEO & General Partner
890 Capital
www.890capital.com

Video Version:

March 2025 Market Update: Charleston Real Estate, Fix-and-Flips & What’s New at 890 Capital

As we move into spring, momentum is building—both in the real estate market and here at 890 Capital. Our March 2025 investor update is now live on YouTube, and it’s packed with valuable insights about where the fund stands, what’s happening in Charleston and across South Carolina, and how we’re continuing to deliver above-market returns for our investors.

In this month’s video, I walk through how the fund is performing (spoiler: really well), what Caleb and I have been up to lately, and the current market dynamics we’re tracking closely.

We’ve now funded over 35 loans, with 12 successfully paid off, and every borrower is current. All investor capital is fully deployed or earmarked for closings in the coming days. With our expanded banking line of credit, we’re staying agile and putting money to work in strong, well-underwritten deals.

On the market front, Charleston County continues to lead the way with home prices up nearly 14% year-over-year and inventory levels rising. Berkeley County remains steady with modest appreciation, while Dorchester is seeing slower sales—but pricing is holding. The fix-and-flip sector remains active and profitable, especially in submarkets where inventory is tight and demand for updated homes is high. Functional renovations continue to be standout strategies for our borrowers.

In addition to our lending activity, Caleb and I recently attended a high-level Real Estate Mastermind event to connect with other top operators and sharpen our strategies. I’m currently in Miami meeting with vendors and capital partners to keep operations running lean and investor dollars working hard.

👀 Watch the full update on YouTube now to hear the full story:
👉 Watch March 2025 Market Update

As always, if you know someone who should be earning consistent, passive income with us—another physician, business owner, or professional—we’d love an introduction. And if you ever want to catch up or ask questions, I’m just an email away: frank@890capital.com.

Thanks again for being part of the 890 Capital community. Let’s keep building.

See you at the top!

February 2025 Update: Growth, Compound Returns, and Big Momentum at 890 Capital

As we move through Q1 of 2025, we’re excited to share what’s new at 890 Capital—both with our portfolio and within the broader market. Our February video update is now live on YouTube (watch it here), but if you prefer to read, here’s a full recap of everything you need to know.

We’re off to a strong start this year. As of February, we’ve deployed all capital in active loans, all backed by real estate and secured in first lien position. Investor capital remains fully deployed, and the performance has been consistent across the board. We’ve also welcomed many new investors, continuing our momentum as we grow our base of high-net-worth and IRA investors seeking steady, passive income.

On the team side, we’re thrilled to welcome two exceptional interns from the University of Notre Dame:
• Paul Hu is leading outreach efforts with accredited professionals across the country—especially those in the medical and legal communities.
• Daniel Cuesta is spearheading our social media, blog, and content strategy to better share what we’re doing and where we’re heading.

Their energy and professionalism have been immediate value-adds to our mission.

In even more exciting news, we’ve officially launched the 890 Reinvest Program—our new option for investors who want to automatically compound their returns. This program allows monthly distributions to be reinvested into future deals, creating a snowball effect that can accelerate long-term returns. This is especially powerful for self-directed IRA investors, who benefit from tax-advantaged growth and don’t need to rely on the cash flow just yet. Compound interest really is the eighth wonder of the world—and now it’s built into your 890 strategy.

As always, we’re keeping a close eye on the markets. Here’s what we’re seeing right now:
• Interest Rates: The Fed has paused further cuts for now after multiple reductions in late 2024. Markets expect rates to stay stable through mid-2025 as inflation trends are monitored.
• Real Estate Pricing: Home prices rose 3.4% YoY in December and are projected to grow another 4.1% by the end of 2025 (CoreLogic). That kind of steady appreciation supports our underwriting and risk models.
• Mortgage Rates: The average 30-year fixed mortgage rate sits around 6.64%—creating continued opportunity for investors and developers seeking short-term capital to move quickly.

Our focus remains fixed on South Carolina real estate lending—where we have the strongest local knowledge and most reliable borrower base. And thanks to your support, we’re building something truly durable.

Thank you for being part of the 890 Capital community. Whether you’re a long-time investor or just getting to know us, we’re here to help you preserve capital, generate consistent income, and grow your wealth over time.

To hear the full update, including our outlook on Q2 and behind-the-scenes fund performance details, check out the video now live on YouTube.

→ Watch the update now here

– Frank Conway
CEO & General Partner, 890 Capital

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!

Cue Earth, Wind & Fire — we’ve made it to September, and you can feel fall in the air! Football, pumpkin spice lattes, apple picking, flannel, and interest rate cuts—what more could you ask for? Here’s the latest from 890 Capital.

Fund Performance & Updates

The Fund’s current average loan-to-value (LTV) across all outstanding loans is 69.6%, with an average loan size of $236,454. We had one borrower complete his fix-and-flip project ahead of schedule, successfully selling the property and repaying the loan—two months before maturity. This is the second loan to be fully repaid in the last month.

890 Capital has 12 outstanding loans, with all borrowers making payments on time, and zero defaults in the portfolio.

On the investor side, we’ve surpassed $50,000 in interest paid to investors and are quickly closing in on $100,000. We look forward to the day, in the near future, when we are paying our investors $100,000+ per month!

We are always seeking referrals. If you know anyone who may be interested in working with us, please let us know! To make it easier on you, we’ve created this short YouTube explaining what 890 Capital does. Share it with a friend and follow us on Facebook, Instagram, YouTube and LinkedIn for all of the latest updates!

Market Insights

Last month, we discussed investing with 890 via tax-advantaged IRAs and the uncertainty in the public markets. While uncertainty remains, a recent study caught our attention, examining how sports gambling impacts household savings. Conducted by researchers from the University of Kansas, Northwestern University, and Brigham Young University, the study revealed a negative influence, especially on “financially constrained households.”

The findings suggest that the legalization of sports gambling has reduced net investments by bettors by nearly 14%. Every dollar spent on sports betting reduces net investments by $2.13. What does this mean? Instead of safely investing in a steady, asset-backed portfolio like 890 Capital, some households are dipping into their savings to bet on sports.

Looking ahead, we have September 17th and 18th circled on our calendar as we await the Federal Reserve’s decision on interest rate cuts. The Fed is expected to lower rates by at least 25 basis points, which could offer some relief to the broader economy. However, these cuts may not immediately reduce mortgage rates, as much of the expected decrease has already been priced in. CoreLogic’s Chief Economist, Selma Hepp, projects that mortgage rates will remain in the 6% range throughout the year.

What won’t change with these cuts? Our returns to investors. Regardless of whether the Fed cuts 25 or 50 basis points, 890 investors will continue earning a 10% annual yield, paid monthly.

Investor Protection

One of the most common questions we get from prospective investors is:

How is 890 Capital, and my investment, protected in a downside market?

• First Position Mortgages: 890 takes first-position mortgages on every asset we lend against. This means all loans are secured and cross-collateralized by a pool of hard real estate assets in the fund.
• Loan-to-Value (LTV) Limits: We only lend up to a maximum of 75% LTV to account for potential market corrections.
• Resale Capability: We maintain a direct relationship with an established real estate team that can quickly step in to fix and resell projects that borrowers cannot complete.
• Target Market: 890 lends to homes in the $100-700k after-repair-value (ARV) range. By staying within this market segment, we avoid exposure to the ultra-high-end market. If market dynamics change, we expect to first see corrections in the luxury segment, allowing us to adjust our underwriting accordingly.
• Asset Security: Investors are secured by the entire portfolio of assets in 890’s fund. If one asset underperforms, the remaining assets serve as collateral for investor protection.

Thank you for your continued support of 890 Capital. If you have any questions or would like to discuss your investment, please don’t hesitate to reach out. We’re here to ensure a profitable and secure journey for all current and future investors.

 

Warm regards, 

Frank Conway & Caleb Pearson

890 Capital

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

 

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