CONCORD, Calif., Aug. 6, 2020 /PRNewswire/ -- The North Star Capital Fund has come out of the gate with a huge first month's APR return of 18.56%, reports John W. Simonse, president of LHJS Investments LLC and one of the Fund's co-Managing Members along with Mark Hanf, CEO of Pacific Private Money Inc. "It's not unusual for a new fund to have higher than normal returns, but this month's return for the Fund's opening quarter starting July 1, 2020 is exceptionally good," states Mr. Simonse.
Mathias Coordes, also from Pacific Private Money, is the Fund's head underwriter, loan originator, and the third member of the Management team. Mr. Coordes states that, "The reason why the Fund's returns are so high is that the Fund's initial construction loans are Dutch Interest loans. The high return has nothing to do with risk. These loans have low LTV's, are in desirable locations, and have very solid, A-paper borrowers. The key is that with these types of loans, interest is paid on the loan amount, not on the amount of principal disbursed."
"The returns for the Fund are very high, but they won't stay this way forever. However, it is a nice way to start," states Mr. Simonse. He goes on to say, "As more principal is funded during construction and the principal balance reaches the loan amount, the loan returns will trend lower. However, if the Fund can keep funding Dutch Interest loans, it is possible to retain higher-than-normal returns, but that all depends on the market and what borrowers are willing to pay."
Mr. Coordes adds, "Once banks reenter the market and more lenders start lending on construction loans again, the rates will come down."
"When that happens, private lenders will have to charge less, but in my opinion, I don't see that happening for another year or so," declares Mr. Simonse.
When asked how an investor can get in on these great returns while they last, Mr. Simonse said, "Any accredited investor can invest in our Fund. Just go to our website at northstar.fund/invest and fill in the short investor questionnaire." Mr. Simonse went on to state that, "Investing in the Fund is very safe. Each loan is secured by a deed of trust on real property, which is one of the best forms of security available."
When asked how to choose a private money investment fund, Mr. Simonse replied, "You want a manager with a lot of experience and skin in the game." Mr. Simonse, whose family and himself have personally invested over one million dollars in the Fund, states, "You will not find a fund with more experienced management. My partners Mark Hanf, Mathias Coordes, and I have over 100 years of experience in real estate." Mr. Simonse's other funds, under his management, have also outperformed similar funds by as much as 30-40% for many years.
About the North Star Capital Fund LLC
The North Star Capital Fund is a new fund that provides construction, remodel, and other business-purpose loans, primarily in the Bay Area and other select cities throughout California. The demand for a lending fund of this nature is extremely high since there remains a severe housing shortage in California. If you would like to invest in trust deeds alongside Mr. Simonse and his partners, The North Star Capital Fund is now accepting new investors.
John W. Simonse
The North Star Capital Fund LLC
Email: [email protected]
SOURCE The North Star Capital Fund LLC