890 Capital

Short-term, first-lien real estate loans. Investors earn 10%+ preferred, paid monthly. Accredited investors only. DMs open for investor letter.

[890 Capital @890Capital]

Most accredited investors I talk to don't need another equity bet.

They need a fixed-income slot that isn't a Treasury or a junk-bond ETF.

Short-term, first-lien real estate credit fills that gap. Not exciting. That's the feature.

[890 Capital @890Capital]

For accredited investors only. Past performance does not guarantee future returns. See https://t.co/wEW5YRPsFU for full disclosures.

[890 Capital @890Capital]

Every 890 Capital loan capped at 75% LTV.

Average actual LTV: ~66%.

That ~34% equity cushion is what sits between our investors and a bad outcome.

We'd rather pass on a deal than push the number.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

For accredited investors only. Past performance does not guarantee future returns. See https://t.co/wEW5YRPsFU for full disclosures.

[890 Capital @890Capital]

Every single loan in the 890 Capital portfolio is in first position.

Which means: if anything goes wrong, we get repaid from the property sale before anyone else.

Combined with our 75% LTV cap, that's our investors' margin of safety.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

Our CFO Carrie Putman has 30+ years in finance & accounting. She is the reason every 890 Capital monthly statement is exactly right.

Quiet excellence in the back office is underrated.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

@elerianm A steady-state labor market is what first-lien real estate lending wants: borrowers keep paying and exits stay on schedule. Short-duration loans also reprice with rates in months, not years, so a soft print doesn't lock you into yesterday's coupon.

[890 Capital @890Capital]

@elerianm Gates show up when assets are long-dated and marks are soft. Short-duration first-lien real estate loans self-liquidate in months, so redemptions get paid from borrowers paying off, not from finding a buyer. Different product than the headline funds.

[890 Capital @890Capital]

For accredited investors only. Past performance does not guarantee future returns. See https://t.co/wEW5YRPsFU for full disclosures.

[890 Capital @890Capital]

Our Chief Real Estate Executive has sold 1,250 homes and flipped 400+ — all in Charleston.

That's the edge.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

@TheStalwart Worth asking Solomon where the private credit marks really are. The headline risk is long-duration corporate direct lending. Short-duration first-lien real estate paper is a different book entirely and rarely gets mentioned in the same breath.

[890 Capital @890Capital]

@MebFaber Works for equities. Fixed income has no equivalent shortcut, so duration does the talking. A 12-month first-lien loan carries a fraction of the rate risk of long corporate paper at the same yield.

[890 Capital @890Capital]

@charliebilello Same pattern in credit: investors chase the hot, long-duration corporate direct lending and underperform on a risk-adjusted basis. The boring trade, short first-lien notes against real assets, tends to age better.

[890 Capital @890Capital]

Same logic on the debt side. We don't underwrite to appreciation. We lend first-lien, short duration, against current value, and get paid monthly. If the exit takes longer, the cash flow doesn't care.

[BiggerPockets @BiggerPockets]

Appreciation is not a strategy.

Michael Zuber has watched people with $10M balance sheets go completely bankrupt betting on it.

He's survived the Dot Com bubble, the 2008 crash, and the post-pandemic meltdown, and his rule hasn't changed:

Hold for 10 years minimum. Buy for cash flow. Never count on appreciation.

He's so confident in this market right now, he's pulling $1M out of his own properties to buy more.

Do you factor appreciation into your deals, or do you treat it as a bonus if it happens? 👇

Listen to the full episode at https://t.co/KQsLsyBDdC.

[890 Capital @890Capital]

@charliebilello A buyer's market is a lender's market. When sellers outnumber buyers, entry prices fall and loan-to-value cushions widen. We'd rather hold a first-lien note at 65% LTV in that Miami than the equity.

[890 Capital @890Capital]

For accredited investors only. Past performance does not guarantee future returns. See https://t.co/wEW5YRPsFU for full disclosures.

[890 Capital @890Capital]

Largest US private credit funds have frozen investor redemptions in recent months.

890 Capital has not. Never have. No plans to.

Why: avg loan length 6.7 mo. Capital cycles continuously. Collateral is the building.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

For accredited investors only. Past performance does not guarantee future returns. See https://t.co/wEW5YRPsFU for full disclosures.

[890 Capital @890Capital]

'Hard money lending' is just real estate operators borrowing short-term at a higher rate so they can close fast.

We're the lender. Investors get a fixed return secured by a first-position mortgage.

https://t.co/wEW5YRPsFU

[890 Capital @890Capital]

@stevehou @tracyalloway @TheStalwart Slok's framework holds on the corporate direct lending side. The piece that gets lost: short-duration first-lien real estate credit is a different product. 12-18 month duration, real collateral, monthly cash. Not the same risk.

[890 Capital @890Capital]

Which is why first-lien is the only line that matters when the cycle turns. Short-duration real estate credit with real collateral gets paid through bankruptcy. Long-duration corporate direct lending finds out the hard way.

[Meb Faber @MebFaber]

Investing Quote of the Day: “Capitalism without bankruptcy is like Christianity without hell.” - Russell Napier