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.
– Frank Conway
CEO & General Partner, 890 Capital
